ASEAN KEY DESTINATIONS
BSP Gov. Espenilla to banks: 'MSMEs are good customers'
Philippines:Seeing the need for more access to financing for micro, small, and medium enterprises (MSMEs), Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. on Friday encouraged financial services providers to better serve the sector.
"My foremost message is focused on financial services providers, especially banks. MSMEs are good customers, they have to be served," Espenilla said during the ASEAN 2017 MSME Development Summit in Pasay City.
"We cannot be complacent in serving that market," the central bank chief added.
Among the challenges faced by small businessmen are access to capital.
Due to tedious processes and bulky documentary requirements before availing a loan from a bank, MSMEs were lured by so called "5-6 lenders," wherein they were charged with high interest rates as much as 20 percent.
To address the challenge in access to financing, Espenilla said that the BSP has created an "enabling regulatory environment that encourages our banks to go beyond comfort zone to deliver financial services to farthest corners of the country."
"How do we do that? We have opened up the banking system to competition. We have allowed the entry of innovative players to encourage banks to work harder for SMEs," he said.
As for the borrowers, Espenilla reminded MSMEs to be responsible with their debts.
"Be responsible, your credit limit is your biggest asset," he said.
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