Manila, May 5 -- The Monetary Board has approved prudential measures to assist the micro, small and medium enterprise (MSME) sector carry on with its business during the coronavirus disease 2019 (Covid-19) crisis, as well as hasten recovery and sustainability of their operations in the post-crisis period.
The first set of measures by the Bangko Sentral ng Pilipinas (BSP) are amendments to the regulatory capital treatment of exposures to MSMEs, which free up capital and enable supervised financial institutions to extend more credit to them.
These include the temporary reduction in the credit risk weights of loans granted to MSMEs that are current in status, and assignment of a lower risk weight for MSME exposures that are covered by guaran...