Best Philippine Banks for Small Business Loans

Is your bank friendly to small businesses? Is it offering small business loans?

The answer is in how they complied with the Magna Carta for Micro, Small and Medium Enterprises. Under this Republic Act, banks are required until June 2018 to lend at least 8% to micro and small businesses and at least 2% to medium-sized businesses. 8 percent and 2 percent of what? The total loans declared on the previous quarter’s balance sheet.

The following banks complied with the Magna Carta requirement, and a number of them provided more small business loans than what is required. Data is sourced from published balance sheets as of December 2010.

Here’s a ranking of banks in terms of their provisions of loans to micro, small and medium-sized businesses:

(Percent of loans given to small businesses is computed in reference to total loans provided in the previous quarter.)

Rank	Bank	Percent of Loans to	Percent of Loans to
		Micro and Small	Medium
		Businesses	Enterprises

1	DBP	8.53	18.75
2	PBCOM	6.94	20.24
3	UCPB	7.39	18.34
4	BPI	10.14	12.14
5	China Bank	10.11	11.93
6	Allied Bank	9.38	12.6
7	Asia United	8.48	11.28
8	Mega International	10.35	8.07
	Commercial Bank Co.
9	Veterans Bank	8.25	9.95
10	Landbank	10.34	7.80
11	Metrobank	8.02	8.16
12	Bancom	9.28	5.82
13	Korea Exchange Bank	11.45	2.86
14	Bank of Tokyo	10.62	3.00
15	Bangkok Bank	8.17	5.07
16	Security Bank	2.84	9.60
17	RCBC	8.16	3.75
18	Union Bank	7.41	4.26
19	Bank of China	8.64	2.16
20	Philtrust	8.09	2.22
21	PNB	8.15	2.10
22	Citibank	0.12	9.49
23	BDO	3.71	4.68
24	East West Bank	4.41	3.93
25	Export & Industry Bank	3.28	3.57
26	China Trust	1.78	4.98
27	Maybank	1.97	4.79
28	ANZ Banking Group Ltd.	0.00	3.63
29	HSBC	0.00	0.07
30	Standard Chartered	0.00	0.04

BanksPhilippines.com

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