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of previous quarter, and make it available for MSME credit.
Banks may be allowed to report compliance on a groupwide (i.e.,
consolidation of parent and subsidiary bank/s) basis so that excess
compliance of any bank in the group can be used as compliance for any
deficient bank in the group: Provided, That the subsidiary bank/s is/are at
least majority owned by the parent bank: Provided, further, That the parent
bank shall be held responsible for the compliance of the group.
The consolidated report shall be submitted by the parent bank in the
prescribed form and shall be supported by the individual reports of the bank
and its subsidiaries duly signed by each bank's authorized signatory.
For purposes of determining compliance with the mandated allocation of
credit resources to MSMEs, only eligible credit exposures as enumerated in
Subsection X342.3, other than those booked in the FCDU/EFCDU shall be
considered.
Subsection X342.3. Eligible credit exposures. Funds set aside in
accordance with the foregoing requirement shall be made available for any of
the following:
a) For micro and small enterprises (MSEs)
(1) Actual extension of loans to eligible MSEs, other than to BMBEs
which are covered in Item "c(3)" hereof: Provided, however, That
loans granted to MSEs other than BMBEs, to the extent funded
by wholesale lending of, or rediscounted with, another bank shall
not be eligible as compliance with the mandatory credit allocation;
or
(2) Loans granted to export, import, and domestic micro and small
scale traders, other than to BMBEs which are covered in Item
"c(3)" hereof: Provided, however, That loans granted to MSEs
other than BMBEs, to the extent funded by wholesale lending of,
or rediscounted with, another bank shall not be eligible as
compliance with the mandatory credit allocation; or
(3) Purchase of eligible MSE loans listed in Items "(1)" and "(2)"
above on a "without recourse" basis from other banks and financial
institutions; or
(4) Purchase/discount on a "with or without recourse" basis of MSE
receivables, other than BMBE receivables which are covered in
Item "c(3)" hereof; or