BSP Allows Banks to Exceed Lending Limits for Green Projects
The Bangko Sentral ng Pilipinas (BSP) has extended regulatory incentives designed to encourage local banks to increase lending for sustainable projects.
The Monetary Board approved the extension, which allows banks to exceed the single borrower’s limit (SBL) by an additional 15% for eligible green financing.
Originally introduced in 2023, these incentives will now remain available for another two years, starting from 6 January 2026.
The policy enables banks to lend more than the standard 25% SBL cap if they direct the funds towards sustainable activities.
The central bank stated that it expects the extended period to facilitate continued financing for key sectors.
These include renewable energy, water and wastewater systems, clean transportation, and climate-resilient infrastructure.
In addition to the extension, the BSP is reviewing other measures to support climate finance. The regulator indicated it is looking into the recalibration of the risk weights for climate resilience-focused financing.
Furthermore, the BSP plans to conduct a review of market conditions.
This assessment aims to identify any refinements needed to further scale adaptation financing and support the Philippines’ long-term climate and development goals.
Featured image by Frolopiaton Palm via Freepik.
The post BSP Allows Banks to Exceed Lending Limits for Green Projects appeared first on Fintech News Philippines.
You May Also Like
What NFT Paris Cancellation Reveals About the NFT Market in 2026
United States Building Permits Change dipped from previous -2.8% to -3.7% in August
