The entire banking system provided smaller amounts for loans to small- and medium-sized enterprises (SMEs) in the second quarter, but still over complied with the requirements set by the central bank.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that banks allocated P246 billion (US$4.37bn) to SME credit in the second quarter of 2004, about 0.3 per cent lower than the P247.3 billion they set the previous quarter.
Still, the BSP said the banks were overcompliant since they were required to set aside only 6.0 per cent of their loan portfolio for direct lending to small enterprises and 2.0 per cent to medium enterprises.
BSP officials traced the drop to the P900 million cut in funds set aside by commercial banks for SME credit.
