BSP gives lower risk weight for MSMEs


By Rose de la Cruz


To ensure the growth of micro small and medium enterprises (MSMEs), the Bangko Sentral ng Pilipinas, through its policy-making body, the Monetary Board, approved the amendments to the risk-based capital adequacy framework for banks by assigning a lower risk weight of 20 percent on performing loans to MSMEs to the extent guaranteed by a qualified Credit Surety Fund (CSF) Cooperative.


A qualified CSF Cooperative refers to a cooperative that is organized consistent with the provisions of the Republic Act (R.A.) No. 10744 (Credit Surety Fund Cooperative Act of 2015) and its Implementing rules and regulations.


Said CSF Cooperative shall have an initial leverage ratio of three, which means a CSF Cooperative can guarantee MSME loans up to three times of its capital. The leverage ratio can be subsequently increased subject to review of the performance of the CSF Cooperative. Existing regulations provide that a 75 percent risk weight shall be applied to qualified MSME portfolio.



This policy intends to facilitate the increased flow of funds to MSMEs that will translate to the further growth of the sector and of the domestic economy. The CSF Program was first launched by the BSP in 2008 with the end goal of enhancing the creditworthiness of MSMEs. This Program was institutionalized with the enactment of R.A. No. 10744 on 6 February 2016.

Like us in Facebook


Latest News

IMAGE PH’s CO2 emission reduction plan lauded

International Civil Aviation Organization (ICAO) Secretary General Fang Lui has commended the Philippines on its voluntary submission of its State... Read More...
Foreign debts remain still at comfortable levels

    By Rose de la Cruz   The Bangko Sentral ng Pilipinas said the country’s foreign debts as of end-2017 remained at comfortable level at $73.1... Read More...
Bong still unsure of Senate run

Should he stay or should he go?  This is the question that Special Assistant to the President Christopher “Bong” Go is trying to answer and... Read More...
IMAGE In the know: Solar Philippines

Solar Philippines is currently the country’s – and Southeast Asia’s – largest solar-energy company. Founded in August 2013 by Leandro... Read More...
Wrong Dream Girl and Other Laughs

Wrong Dream GirlA FROG telephones the Psychic Hotline. His Personal Psychic Advisor tells him, "You are going to meet a beautiful young girl who will... Read More...
Confession Code and other laughs

Confession Code AN old priest who became sick of all the people in his parish who kept confessing to adultery said one Sunday, in the pulpit,"If I... Read More...

SUPORTADO nang ibat-ibang consumer group kabilang na ang Institute for Consumer Research and Empowerment (ICORE) ang panukalang dapat putulin na ang... Read More...
IMAGE Maliwanag na mensahe

PATULOY pa rin ang mainit na isyu hinggil sa total deployment ban nang mga overseas Filipino worker (OFW) sa Kuwait na ibinaba nang pamahalaang... Read More...

Our Guests

This week4175
This month19896

Visitor Info

  • Your IP:

Who Is Online


Thursday, 22 March 2018
© 2016 OpinYon News Magazine Online. All Rights Reserved.

Please publish modules in offcanvas position.