Mandatory Credit Allocation and Government Guarantee in the Philippines

• Main Author: Dumlao, Luis F
• Format: text
• Published: Archīum Ateneo 2024
• Subjects: bank lending; credit rationing; financing agriculture; financing innovation; financing micro; Philippines; small and medium enterprises (msme) finance; Business; Economics; Social and Behavioral Sciences
• Online Access: https://archium.ateneo.edu/economics-faculty-pubs/217; https://archium.ateneo.edu/context/economics-faculty-pubs/article/1219/viewcontent/4322_48_63.pdf
• Institution: Ateneo De Manila University

Mandatory credit allocation is a policy intervention to pressure banks to lend to certain sectors that otherwise unfettered finance would not give access to. While some would argue that mandatory credit allocation results in sub-optimal allocation of resources, it has been shown that such interventi...