Microfinance loans pegged at P6.5B–BSP

Microfinance loans pegged at P6.5B–BSP

TUESDAY, 05 APRIL 2011 23:29
JUN VALLECERA / REPORTER  


FROM an activity that counted for almost nothing 10 years earlier, microfinance loans have grown through the years and total P6.5 billion as of latest, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

BSP Gov. Amando M. Tetangco Jr. bared this at the microfinance summit held at the central bank complex along Roxas Blvd. where some 300 microfinance policymakers, regulators, microfinance institutions, donors and investors celebrated the triumphs and milestones of the local microfinance industry.

At the summit, Tetangco urged the various stakeholders to commit to greater microfinance activities, pursue still more financial inclusion programs and engage in more networking activities.

Tetangco said the summit was inspired by the consistently high ranking the Philippines obtained at the survey conducted each year by the Economist Intelligence Unit or EIU.

"Philippine microfinance is cited as the best in the world in terms of regulatory framework, and second-best performing in terms of overall business environment. This is an upward ranking compared to the 2009 survey wherein the Philippines landed number three in overall business environment while retaining its number-one position in the regulatory framework category.

"This recognition affirms the good work that all microfinance industry players are doing. It indicates that each stakeholder ably and ardently performs its roles and responsibilities in order to make the Philippine microfinance market what it is today: viable, sustainable, sound, safe and strong," Tetangco said.

The BSP first crafted the rules and regulations governing microfinance in 2000 when it was mandated by the General Banking Law to recognize it as a legitimate banking activity and as one more tool to combat poverty.

Since then, the BSP has issued more than 20 circulars that promote a microfinance-friendly regulatory environment in the country.

From almost nothing as an industry 10 years ago, microfinance institutions now count among its members more than 200 microfinance-oriented banks servicing the micro-loan requirements of some 900,000 small borrowers

These banks collectively extended some P6.5 billion worth of micro loans. These same micro borrowers were able to amass savings totaling P3 billion as of latest, Tetangco said.

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