MSME Access to Finance

Session 2: Effective Credit Access to the Countryside RBAP 58th Charter Anniversary Symposium

JERRY T. CLAVESILLAS, Director III Bureau of Small and Medium Enterprise Development

Department of Trade and Industry

Mandatory Credit Allocation  

8% 2

%

MSEs MEs

2010 2011 2012 2013 2014 2015

8.46 7.56

6.39 5.59

4.9 4.37

7.94 7.58

6.92 6.1 6.1

5.59

Trends in MSME Lending in the Philippines

Microfinance Facility Lending program to microfinance institutions with

organizational capability to provide sustainable credit access to borrowers in the livelihood sector

Target end-borrowers: Start-up Graduating micro enterprises

SME Roving Academy Channel for dissemination of information on financing

Enhance competitiveness

Increase contribution to the country’s GDP and total employment

New Financing Products Designed to cater to clients in the countryside

Loan Fund for Farm Development for pocket farmer

-entrepreneurs

Lending to MSME clientele of DTI’s Shared Service Facility (SSF)

Equity Financing for Corporatized Micro Enterprises

Updates on the MSMED Council Reconstitution of the Council and participation of

microfinance NGOs Members  

MSMEs and women

sectors

labor and private banking sectors

microfinance NGO

Advisory Unit  

Updates on the MSMED Council Additional functions

Coordinating and oversight body for Negosyo Centers

Provision of compliance guide

Conduct of research on women entrepreneurship

Policy formulation on women

entrepreneurship

Development of entrepreneurial education and

training

Updates on the MSMED Council 2015 National MSME Summit

Summit presentations are available at:

https://goo.gl/nGwFlb

Mandatory Credit Allocation

Credit Allocation (as of June 2015)  

4.37% 5.59

%

MSEs MEs

Universal/ commercial

banks

Thrift banks Rural/cooperative banks

MSEs 3.45 7.24 23.00

MEs 5.27 6.94 10.03

SB Corp Loan Releases

Loan Releases (as of September 2015)  

Php12.1 billion

Microfinance program

ERF program

Php732.63 million

Recommendations: Access to finance for MSMEs

Universal/commercial banks, thrift banks, and rural/cooperative banks should

improve their compliance to the mandatory credit allocation, especially to micro and

small enterprises.

The Credit Surety Fund, a scheme developed by the Bangko Sentral ng

Pilipinas aimed at increasing the credit worthiness of MSMEs, is an opportunity for MSMEs to improve their access to

finance.