The BSP is also implementing several projects to facilitate credit flows to the MSME sector. Our agri value chain financing (AVCF) pilot project aims to improve industry capacity and interest for this innovative financing approach to benefit not just smallholder farmers, but also agri-based MSMEs.
*** We at the Federal Reserve remain concerned about the growth and magnitude of the mortgage portfolios of the GSEs, which concentrate interest rate risk and prepayment risk at these two institutions and makes our financial system dependent on their ability to manage these risks.