On the part of the banks, CSF is a welcome program, as it provides opportunities to comply with the mandatory 8pct credit allocation required under the law – RA 6977, as amended, also known as The Act to Promote, Develop and Assist SMEs – under a more manageable risk framework.
As a whole therefore, the CSF is a win-win program for coop members, banks and our national goal to have a more inclusive financial system that will support inclusive growth. Indeed, we have seen the initial benefits from our partnerships under the CSF. As of May this year, roughly P1.1 billion in loans have been granted by 30 CSFs to nearly 10,000 MSMEs.