The Bangko Sental ng Pilipinas (BSP) has recognized the role of the Land Bank of the Philippines in helping micro, small and medium enterprises (MSMEs).
In the recently concluded Awards Ceremony and Appreciation Lunch for BSP Stakeholders in the National Capital Region, the central bank awarded LandBank as the “Outstanding Lending Bank” under the Credit Surety Fund (CSF) category.
The CSF Program (CSF) is a credit enhancement scheme developed by the central bank that aims to increase the credit worthiness of MSMEs that are experiencing difficulty in obtaining loans from banks due to lack of acceptable collaterals, credit knowledge and credit track records.
The scheme aims to improve the bankability and credit worthiness of MSMEs, including cooperatives, which are short of collaterals and are often confronted with difficulties in obtaining loans from banks because of lack of collaterals, credit knowledge and credit track records.
The CSF Program was created by pooling cash contributions from participating cooperatives, local government units and other partner institutions.
“LandBank has always been supportive of the Credit Surety Fund program as we strongly share its objective of making bank credit more accessie to MSMEs, who are our important partners for progress and development,” said Gilda Pico, LandBank president and chief executive officer.
Of the pledged amount of P65.2 million, the bank released P40.4 million to 16 CSFs as of end-June this year.
Mayvelin U. Caraballo