THE CENTRAL BANK will extend banks’ alternative reserve compliance until 2022 in a bid to support the financial system and struggling sectors due to the coronavirus pandemic.

“The period was extended to give more banks to consider the nuances in extending credit to this sector,” Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said in a text message.

The BSP last week released new guidelines to include loans extended to large enterprises not part of conglomerates as reserve compliance in addition to credit to micro-, small- and medium-sized enterprises (MSMEs), which was already announced earlier.

“The circular will be issued maybe next week,” she said, adding that they are awaiting confirmation from the Monetary Board on the decision. — LWTN