BSP Approves Establishment of Microfinance Institutions in Underserved Areas of the Philippines

MICROCAPITAL BRIEF:
Bangko Sentral ng Pilipinas (BSP) Approves Establishment of Microfinance Institutions in Underserved Areas of the Philippines

» Posted by Trevor Kwong in Category: Asia, Regulation at 2:00 am

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, announced that microfinance institutions (MFIs) can now start operations in cities and rural areas that had no programs aiming at low-income groups.

MFIs can set up microbanking offices (MBOs) in these areas and accept microdeposits, disburse microloans, sell microinsurance and provide remittance services, as authorized under BSP Capital circular 694 published in 2010. At least half of the total transactions carried out by MBOs must be related to microloans or microinsurance policies.

The MFIs of the Philippines reporting data for 2009 to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, have an aggregate loan portfolio of USD 548 million, total assets of USD 801 million and 2.7 million active borrowers.

About the Bangko Sentral ng Pilipinas (BSP):

Established in July 1993, Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. BSP has three regional offices performing cash operations and cash administration and eighteen branch offices. BSP participates in advocacy programs concerning microfinance, financial education and consumer protection.

By Trevor Kwong, Research Assistant

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