Reluctance on the part of both borrowers and lenders is hampering lending to small- and medium-enterprises (SME) in Cebu, a rural banker said.
In a training seminar for credit personnel from rural banks conducted at the Montebello Villa Hotel here, Teresita Manguerra, president of the Cebu Federation of Rural Bankers Association (CFRBA) said borrowers have been reluctant to take a bigger risk in business by borrowing a bigger amount.
"There is a reluctance from borrowers. Those who have a little money don't want to borrow money anymore. They don't want to go into business because they don't want their properties to be mortgaged. They're not sure of the economy," Manguera told reporters.
Most banks, on the other hand, were very conservative, that they demanding enough collateral to cover the loans before releasing the money.
