The Philippine monetary and banking policies have gone through several changes. Between the creation of the Central Bank and 1985, cheap credit policies have been maintained. Highly specialized banks are created to serve specific sectors. This has resulted to the shortfall of the financial system to meet the demands of the real sector. This paper analyzes the impact of the monetary policy, finance and credit programs on Micro, Cottage, Small and Medium Enterprises (MCSME) development in the Philippines. It also examines corresponding monetary policies, finance and credit programs in Japan, Korea and Taiwan and attempts to draw for the Philippines some lessons and implications from their experience. Recommendations for specific policies and legislative actions for the promotion of MCSMEs are given.