| This study assessed the financing services offered by banks relevant to small and medium enterprise (SME) development in the Province of Batangas. Sixty-eight banks in the cities of Batangas, Lipa, and Tanauan participated in a survey conducted from December, 2005 to March, 2006. Responses of the participants, the bank managers or loan officers, were computed by percentage, weighted mean, analysis of variance, and chi-square test. It was found out that all banks extensively employ credit worthiness assessments in evaluating the loan proposals of SME borrowers. Moreover, the credit facilities offered by banks vary depending on the needs of their respective loan clients. While rural banks offer the lowest loan ceilings, they are relatively more predisposed than their counterparts in giving extra privileges in extending credit to the SME sector being their major target market. However, the preferential treatments to SME borrowers extended by the different bank groups do not vary significantly. On the other hand, the most common forms of charges given by banks to borrowers are interest and service fees. The study also found out that the support services provided by banks are generally related to bank size. Bigger banks have hosts of services to offer to their clients. |
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