The Bangko Sentral ng Pilipinas is pushing to close a persistent financing gap for micro, small and medium enterprises, with bank loans to the sector reaching more than P580 billion but accounting for only about 6 percent of total business lending.
BSP Deputy Governor Bernadette Romulo-Puyat said the figures highlight the disconnect between the size of the MSME sector and its access to formal credit.
She cited a 2024 survey showing that 88 percent of MSMEs wanted to expand, yet many continued to rely on personal savings or remained reluctant to borrow.
“The challenge is not simply whether financing is available. It is whether financing works for MSMEs,” Romulo-Puyat said at a forum on MSME financing.
MSMEs account for more than 99 percent of Philippine enterprises, making improved access to appropriate financing potentially significant for investment, job creation and economic growth.
Romulo-Puyat said limited credit histories and traditional collateral requirements can make otherwise viable small businesses difficult for banks to assess.
The BSP is seeking to address those information gaps through the Standard Business Loan Application Form, which standardizes the information lenders require from borrowers.
It is also working with the Japan International Cooperation Agency on Credit Risk Database Philippines, which uses business data and statistical scoring to help financial institutions evaluate borrowers with limited collateral or credit histories.
The effort comes as Philippine businesses face a more uncertain external environment.
BSP Deputy Governor Zeno Ronald Abenoja said stronger exporters and MSMEs are increasingly important as companies navigate geopolitical tensions, changing trade policies, supply-chain shifts and softer global demand.
“Strengthening our export industry becomes an economic imperative,” Abenoja said, noting that exporters contribute to employment, investment and foreign exchange earnings.
The BSP’s approach suggests that expanding MSME credit will require more than increasing loan supply. Better borrower information and risk assessment could be key to bringing more small businesses into the formal financing system.
