These efforts were accompanied by a wide range of regulatory and operational relief measures for financial institutions. Knowing that small businesses were hard hit by mobility restrictions and lockdowns, we incentivized bank lending to MSMEs by treating new loans to MSMEs as compliance with the reserve requirement.
In addition, we temporarily increased the single borrowers’ limit and raised the ceiling for real estate loans of universal and commercial banks from 20 percent to 25 percent. And to provide relief to beleaguered borrowers, we excluded some loans from being tagged as past due or non-performing and allowed a grace period for loan settlement and restructuring of rediscounted loans.