With this, we have allowed banks with microfinance operations to extend credit to those with small agricultural activities using microfinance methodologies. In doing so, these micro-agri loans are given the same regulatory treatment as microfinance loans, even as we set parameters to ensure that risks associated with agriculture finance are properly managed.
With this initiative, we expect to see more banks serve the unmet needs of small farmers. Indeed, we at the Bangko Sentral ng Pilipinas continue to find more and better ways of providing access to credit to our agricultural farmers and workers.