ACCESS to credit is vital in driving expansion and growth, asset building, and maintenance. Micro, small and medium enterprises (MSMEs) that are provided credit can potentially increase their production and expand market outreach.

The rural banks are mandated by law to extend loans to MSME clients. As of the third quarter of 2015, the rural banking industry had extended P20 billion to the micro and small enterprises and P9.6 billion to medium-sized enterprises. These figure translate to 22 percent and 10 percent compliance to MSME lending versus the mandated 8.0 percent and 2.0 percent, respectively.