Big lenders released P7.6B worth of micro loans in H1
Published on Tuesday, 16 October 2012 19:58 Written by Jun Vallecera /
Reporter
THE business of extending micro loans is fast catching up with the more
formal lending activities of large lenders, with 182 banks extending
P7.6 billion worth of micro credits as at end-June this year.
This amounted to growth averaging 10.5 percent, including lending to
so-called small and medium scale enterprises or SMEs and compares
favorably against big bank-lending growth averaging 14 percent as at
end-August, based on data obtained from the Bangko Sentral ng Pilipinas
(BSP).
"On this point, 182 banks had P7.6 billion in microfinance loans
outstanding to cover a million small entrepreneurs as of end-June 2012.
Overall microfinance deposits have also increased enough to fund over
half of the microfinance loan portfolio," said Deputy BSP Gov. Nestor A.
Espenilla Jr.
The numbers indicate loan activities averaging P10,000 or less should
soon approximate the lending growth posted by large lenders such as
Banco de Oro, the Metropolitan Bank and Trust Co. or even the Bank of
the Philippine Islands.
It was earlier hoped microloan activities should prove robust this year
as the financial literacy campaign of both the BSP and the banks
themselves gain more traction.
Espenilla expressed optimism the pace of lending in the micro-loan
sphere will continue to rise going forward.
"We have introduced new products in the microfinance market while
engineering a calibrated lowering of regulatory requirements without
sacrificing on prudential oversight," he said of such products as
microinsurance, microhousing, micro-agri and more recently the
microfinance plus program now sold by microfinance institutions around
the country.
He likewise noted the acceleration of lending in the SME sector where
loan growth was in excess of 10 percent as of latest.
"But more than the growth rate, we are also seeing more favourable
terms," Espenilla said.
Technology has also made it more efficient for the various microfinance
institutions to extend and widen their services even as the number of
banks has declined due to consolidation.
Apart from more branches and automated teller machine deployment,
innovative structures such as micro-banking offices and loan collection
and disbursement points have likewise increased the credit access
points, he said.
Espenilla said there are not 26 so-called electronic money issuers,
197,500 registered mobile banking users and 12,918 cash-in/cash-out
agents that reach even the most remote points of the country that
traditional bank units refuse to service.
He said the milestones achieved thus far in the micro- lending space
have since been recognized internationally.
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CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
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