Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. has urged thrift banks to lend more to micro, small and medium enterprises (MSMEs), stressing the crucial role of banks in helping achieve the country’s poverty reduction and economic development goals.
In a speech during the annual convention of the Chamber of Thrift Banks (CTB), Tetangco said the resources of thrift banks had been growing, fueled by increasing deposits from the public.
Given this, he said, the thrift banking sector had the ability to further accelerate growth in lending.
“The resources of thrift banks—deposits, loans and capital—have all grown substantially. Thrift banks can help more deserving MSMEs,” Tetangco said.
He stressed the importance of MSMEs in economic development, saying they accounted for the bulk of employment in the country.
Government estimates show that MSMEs employ about 70 percent of the labor force in the country.
“The MSME sector provides employment for most Filipinos; it is, in fact, the backbone of our economy. This is where members of CTB can make a lot of difference in terms of moving our economy forward,” Tetangco said.
Data from the BSP showed that as of September 2011, there were 70 players in the country’s thrift banking industry with 1,394 head offices and branches.
Outstanding loans from thrift banks stood at P367.89 billion as of the same period, up by nearly 7 percent from P344.58 billion in the same period in 2010.