DOF backs plan to put HMOs under IC supervision
ABS-CBNnews.com
Posted at 10/28/2013 2:06 PM | Updated as of 10/28/2013 2:06 PM
MANILA, Philippines - The Department of Finance (DOF) is supportive of a
proposal to place health-maintenance organizations (HMOs) under the
supervision and regulation of the Insurance Commission (IC).
In a statement, Finance Secretary Cesar V. Purisima said since HMO
providers act like pre-need firms, these should be regulated and
supervised by a government institution with "expertise" such as the IC.
"I am supportive of the idea of moving the HMOs to the IC, so that it
can be better regulated. Now that we're moving towards a universal
healthcare system, we need to make sure that we have a reliable health
care provider and financially strong," he said.
At present, HMOs are under the Department of Health (DOH), but the
latter only issues clearance to operate to these companies.
The IC does not consider HMOs as insurance companies. Transferring
supervision of HMOs to the IC would require legislative action.
"Right now, it's supposed to be regulated by the DOH, but the DOH does
not have the expertise so the DOH is already in talks with the IC
because they want to transfer HMOs to IC," he said.
Purisima said the move to transfer supervision of HMOs would also
address problems such as "fly-by-night" HMOs and complaints about
non-payment of claims.
The Association of Health Maintenance Organization of the Philippines,
Inc. (AHMOPI) has not issued an official statement on the proposal.
Wednesday, October 30, 2013
Tuesday, October 29, 2013
Microfinance clients’ savings total P8.9B
Microfinance clients' savings total P8.9B
October 27, 2013
In fact, Tetangco reported that the more than one million microfinance
borrowers have combined savings of P8.9 billion as of the end of the
first half of 2013, higher than end-March's P8.2 billion.
Speaking at the 3rd Annual International Banking Conference, the BSP
chief since there are now 186 banks offering microfinance services and
products, microfinance loans have grown 3x from 2002 to 2013 at P8 billion.
Filipinos' access to microcredit, said Tetangco, is the first step to
gaining financial independence. "The socio-economic impact of developing
an inclusive banking system cannot be overemphasized," he told foreign
bankers attending a banking event held in Makati recently. In 2009,
microfinance clients' savings were only P1.78 billion.
But, the BSP still face the challenge of financial inclusion especially
since only 20 percent of Philippine households have bank accounts out of
a population of 100 million.
"The critical issue to determine then is how inclusive our banking
system has become," said Tetangco. "Our ultimate goal is for banks to
cover even the underbanked, the unbanked, and those that have been
mis-labeled as 'unbankable'," he added.
As the BSP craft regulations and policies that would expand the
industry's network through branch banking, ATMs, ebanking, and
innovations in marketing and service delivery, Tetangco said the eye is
always on developing an inclusive financial system and consumer protection.
"(We're) taking consumer protection a notch higher," he said.
The BSP's Monetary Board, its policy-making arm, is currently reviewing
a consumer protection framework that outlines the modes of behavior and
practices that should be adhered to by BSP-supervised institutions.
The latest BSP microfinance-related consumer protection policy was
Circular No. 782 which expanded the scope of qualified microinsurance
clients and increased their risk protection.
The central bank's Consumer Finance Survey (2009 report) indicated that
eight out of 10 Filipino households do not have a deposit account with
93 percent of them citing that they do not have enough money to open
bank deposits as their primary reason, said the BSP. The microfinance
banking helped improve the numbers and from only P2.6 billion loan
accounts in 2002, it has expanded to P8 billion by the first quarter
this year.
The BSP has been continuously introducing new products for the
microentrepreneurs and has changed policy and regulatory framework to
encourage banks to deliver financial products and services that are
accessible to all Filipinos. These include policies on microfinance,
microdeposits and microinsurance.
October 27, 2013
In fact, Tetangco reported that the more than one million microfinance
borrowers have combined savings of P8.9 billion as of the end of the
first half of 2013, higher than end-March's P8.2 billion.
Speaking at the 3rd Annual International Banking Conference, the BSP
chief since there are now 186 banks offering microfinance services and
products, microfinance loans have grown 3x from 2002 to 2013 at P8 billion.
Filipinos' access to microcredit, said Tetangco, is the first step to
gaining financial independence. "The socio-economic impact of developing
an inclusive banking system cannot be overemphasized," he told foreign
bankers attending a banking event held in Makati recently. In 2009,
microfinance clients' savings were only P1.78 billion.
But, the BSP still face the challenge of financial inclusion especially
since only 20 percent of Philippine households have bank accounts out of
a population of 100 million.
"The critical issue to determine then is how inclusive our banking
system has become," said Tetangco. "Our ultimate goal is for banks to
cover even the underbanked, the unbanked, and those that have been
mis-labeled as 'unbankable'," he added.
As the BSP craft regulations and policies that would expand the
industry's network through branch banking, ATMs, ebanking, and
innovations in marketing and service delivery, Tetangco said the eye is
always on developing an inclusive financial system and consumer protection.
"(We're) taking consumer protection a notch higher," he said.
The BSP's Monetary Board, its policy-making arm, is currently reviewing
a consumer protection framework that outlines the modes of behavior and
practices that should be adhered to by BSP-supervised institutions.
The latest BSP microfinance-related consumer protection policy was
Circular No. 782 which expanded the scope of qualified microinsurance
clients and increased their risk protection.
The central bank's Consumer Finance Survey (2009 report) indicated that
eight out of 10 Filipino households do not have a deposit account with
93 percent of them citing that they do not have enough money to open
bank deposits as their primary reason, said the BSP. The microfinance
banking helped improve the numbers and from only P2.6 billion loan
accounts in 2002, it has expanded to P8 billion by the first quarter
this year.
The BSP has been continuously introducing new products for the
microentrepreneurs and has changed policy and regulatory framework to
encourage banks to deliver financial products and services that are
accessible to all Filipinos. These include policies on microfinance,
microdeposits and microinsurance.
Monday, October 28, 2013
Small Pampanga town hosts P1-B coffin industry
Small Pampanga town hosts P1-B coffin industry
26 Oct 2013 Written by Joey Pavia / Correspondent
SANTO TOMAS, Pampanga—This small town that has only seven barangays and
suffers from perennial floods is host to the P1-billion coffin-making
industry.
Santo Tomas Mayor Joselito Naguit, quoting from a recent report of the
Department of Trade and Industry, said the town supplies at least 70
percent of the total coffins produced in the country.
Naguit said there are more than 100 coffin manufacturers in Santo Tomas,
including the backyard producers.
The BusinessMirror interviewed Naguit and several others on the
country's coffin industry as preparations are being made to mark All
Souls' Day, when millions of Filipinos troop to cemeteries nationwide to
pay their respects to their dearly departed.
In the Philippine Demographics Profile 2013, it was estimated that there
are 4.98 deaths per 1,000 people per year in the country, which now has
a population of 105 million.
Naguit said 40 percent of the town's 40,000 residents depend on the
industry, which reportedly started at the height of World War II in the
1940s.
The three-term mayor said some of his young constituents are enticed to
skip education early after earning while working for the coffin
manufacturers, most of which are in Barangay San Vicente.
Naguit said the local government does not have much of a problem on
livelihood opportunities because of the industry.
He said in the 1970s, the industry gained acceptance from the locals—and
even visitors—and allowed many of the town's households to become
economically productive. Before then, Santo Tomas folk used to hide when
they made coffins.
But nowadays, it is normal for motorists to see unfinished coffins being
done along the streets.
Most profitable
VICE Mayor Mark Louie Arceo, whose family operates one of the top
producers of coffins in Santo Tomas brand named SLRC, said the coffin
industry "is the most profitable business."
Arceo revealed that the coffin of the late "King of Comedy" Dolphy was
made in Santo Tomas. Dolphy's funeral service cost about P500,000 and at
least 40 percent, or P200,000, was for the brass coffin.
The coffin of legendary actor Fernando Poe Jr. was also made in Santo
Tomas, said Arceo, whose family also operates the Saint Louie Funeral
Home, which has four branches in Pampanga and two in Metro Manila—in San
Juan City and in Sampaloc.
Arceo said his company produces an average of 150 coffins weekly. He
added they have at least 30 regular workers.
Nic Macam, who works at the SLRC coffin-manufacturing plant, said he
earns at least P500 a day doing an "all-around job."
Macam, who has been working for at least 30 years in
coffin-manufacturing plants in Santo Tomas, said, "It's quite a good job."
Arceo said even those not directly hired by the coffin makers, including
young people and housewives, benefit from the industry because the
interior designs of the coffins are "outsourced" from them.
Among the coffin workers, the "welder-assembler" earns the highest,
getting paid at least P1,000 a day, Arceo said.
Arceo said SLRC's coffins reach as far as the Bicol region. He added
that the company is the supplier of coffins for the La Funeraria Paz in
Quezon City.
Arceo said his father, former Mayor Lucas Arceo, started the plant 30
years ago. His grandfather, Florencio, also operated a
coffin-manufacturing plant where Lucas worked, Arceo said.
The cheapest coffin costs P5,000, while the most expensive made of brass
costs some P200,000.
Keep it in town
ARCEO said the local government is pushing for the creation of a
cooperative of coffin makers to "stabilize the prices of the coffins."
"More important," he added," the industry must be kept in Santo Tomas
for the benefit of the present and future generations."
Arceo cited a case several years ago when workers from Negros Occidental
had been hired in Santo Tomas. "The workers hurriedly left after
learning 'the secret of making coffins.'"
"As a result, a small coffin industry was set up in Negros Occidental
and its capital, Bacolod City," he added.
Naguit said, "We are exhausting all means to keep the manufacturing of
coffins in Santo Tomas." He added that they had received reports there
are a few coffin-manufacturing plants in other towns and cities in
Pampanga operating now.
Inherited
PAMPANGA Gov. Lilia Pineda said the people of Santo Tomas "are, indeed,
great craftsmen." Their skills are passed on from one generation to
another, she added.
Pineda said Santo Tomas is also known for its pottery industry and
assembly of jeeps and Jeepneys.
"The Santo Tomas townspeople are, indeed, hardworking and superbly
skilled," she added.
Pineda said, "It pains us when we help our tragedy-stricken neighbors by
donating coffins to them, but we have no choice."
In 2011 the fourth-class municipality hogged the limelight when Pineda
and the Pampanga Mayors' League donated 500 coffins for Typhoon
Sendong's victims in the cities of Cagayan de Oro and Iligan.
26 Oct 2013 Written by Joey Pavia / Correspondent
SANTO TOMAS, Pampanga—This small town that has only seven barangays and
suffers from perennial floods is host to the P1-billion coffin-making
industry.
Santo Tomas Mayor Joselito Naguit, quoting from a recent report of the
Department of Trade and Industry, said the town supplies at least 70
percent of the total coffins produced in the country.
Naguit said there are more than 100 coffin manufacturers in Santo Tomas,
including the backyard producers.
The BusinessMirror interviewed Naguit and several others on the
country's coffin industry as preparations are being made to mark All
Souls' Day, when millions of Filipinos troop to cemeteries nationwide to
pay their respects to their dearly departed.
In the Philippine Demographics Profile 2013, it was estimated that there
are 4.98 deaths per 1,000 people per year in the country, which now has
a population of 105 million.
Naguit said 40 percent of the town's 40,000 residents depend on the
industry, which reportedly started at the height of World War II in the
1940s.
The three-term mayor said some of his young constituents are enticed to
skip education early after earning while working for the coffin
manufacturers, most of which are in Barangay San Vicente.
Naguit said the local government does not have much of a problem on
livelihood opportunities because of the industry.
He said in the 1970s, the industry gained acceptance from the locals—and
even visitors—and allowed many of the town's households to become
economically productive. Before then, Santo Tomas folk used to hide when
they made coffins.
But nowadays, it is normal for motorists to see unfinished coffins being
done along the streets.
Most profitable
VICE Mayor Mark Louie Arceo, whose family operates one of the top
producers of coffins in Santo Tomas brand named SLRC, said the coffin
industry "is the most profitable business."
Arceo revealed that the coffin of the late "King of Comedy" Dolphy was
made in Santo Tomas. Dolphy's funeral service cost about P500,000 and at
least 40 percent, or P200,000, was for the brass coffin.
The coffin of legendary actor Fernando Poe Jr. was also made in Santo
Tomas, said Arceo, whose family also operates the Saint Louie Funeral
Home, which has four branches in Pampanga and two in Metro Manila—in San
Juan City and in Sampaloc.
Arceo said his company produces an average of 150 coffins weekly. He
added they have at least 30 regular workers.
Nic Macam, who works at the SLRC coffin-manufacturing plant, said he
earns at least P500 a day doing an "all-around job."
Macam, who has been working for at least 30 years in
coffin-manufacturing plants in Santo Tomas, said, "It's quite a good job."
Arceo said even those not directly hired by the coffin makers, including
young people and housewives, benefit from the industry because the
interior designs of the coffins are "outsourced" from them.
Among the coffin workers, the "welder-assembler" earns the highest,
getting paid at least P1,000 a day, Arceo said.
Arceo said SLRC's coffins reach as far as the Bicol region. He added
that the company is the supplier of coffins for the La Funeraria Paz in
Quezon City.
Arceo said his father, former Mayor Lucas Arceo, started the plant 30
years ago. His grandfather, Florencio, also operated a
coffin-manufacturing plant where Lucas worked, Arceo said.
The cheapest coffin costs P5,000, while the most expensive made of brass
costs some P200,000.
Keep it in town
ARCEO said the local government is pushing for the creation of a
cooperative of coffin makers to "stabilize the prices of the coffins."
"More important," he added," the industry must be kept in Santo Tomas
for the benefit of the present and future generations."
Arceo cited a case several years ago when workers from Negros Occidental
had been hired in Santo Tomas. "The workers hurriedly left after
learning 'the secret of making coffins.'"
"As a result, a small coffin industry was set up in Negros Occidental
and its capital, Bacolod City," he added.
Naguit said, "We are exhausting all means to keep the manufacturing of
coffins in Santo Tomas." He added that they had received reports there
are a few coffin-manufacturing plants in other towns and cities in
Pampanga operating now.
Inherited
PAMPANGA Gov. Lilia Pineda said the people of Santo Tomas "are, indeed,
great craftsmen." Their skills are passed on from one generation to
another, she added.
Pineda said Santo Tomas is also known for its pottery industry and
assembly of jeeps and Jeepneys.
"The Santo Tomas townspeople are, indeed, hardworking and superbly
skilled," she added.
Pineda said, "It pains us when we help our tragedy-stricken neighbors by
donating coffins to them, but we have no choice."
In 2011 the fourth-class municipality hogged the limelight when Pineda
and the Pampanga Mayors' League donated 500 coffins for Typhoon
Sendong's victims in the cities of Cagayan de Oro and Iligan.
Saturday, October 12, 2013
BSP mulls national survey to measure effectiveness of microfinance industry
BSP mulls national survey to measure effectiveness of microfinance industry
By SIEGFRID O. ALEGADO, GMA NewsOctober 9, 2013 7:34pm
The Bangko ng Sentral ng Pilipinas wants to measure the effectiveness of
the Philippine microfinance industry – touted as one of the best in the
world – in alleviating poverty, the central bank chief said.
"We see the value of collecting evidence and data that conclusively
affirms… that access to financial services empowers households to better
manage their resources and improve the quality of their lives," central
bank Governor Amando Tetangco Jr. said in his speech at the Microcredit
Summit Campaign Wednesday.
Microfinacing provides credit to poor individuals wanting to start small
businesses, like mom and pop shops, but who cannot access loans from big
banks because they do not have collateral.
It is largely provided by rural banks and non-government institutions.
Pia Bernadette Roman-Tayag, BSP head for financial inclusion, said on
the sidelines of the summit that the central bank is currently studying
the possibility of a nationwide financial inclusion survey to measure
microfinance sector's effectiveness.
"We want to know, beyond anecdotal evidence, if financial inclusion
initiatives are bearing fruit," said Tayag.
In an interview, Muhammad Yunus, a Nobel laureate for developing the
concepts of microcredit and microfinance, shared that in Bangladesh
effectiveness of microfinance is measured through a set of indicators
that include access to potable drinking water and sanitation as well as
savings for emergencies.
Tetangco, meanwhile,underscored the importance of providing a regulatory
environment to reduce the barriers to the poor's financial access.
He cited regulatory initiatives such as consumer education and employing
rules governing micro-housing and micro-agri loans and the distribution
of microinsurance,
"The result is a regulatory environment which recognizes that the
financial needs of the poor and the unbanked are as varied as the
regular financial consumer," Tetangco said.
Such regulations have made the Economist Intelligence Unit cite the
Philippine microfinance industry as one of the best in the world.
Mila Mercardo-Bunker, chairperson of the Microfinance Council of the
Philippines Inc., said the local microfinance industry remains healthy.
"The repayment rate on microfinance NGOs is at 95 percent, while for
rural banks engaged in microfinance it is at 85 percent," she told GMA
News Online in an interview.
Tetangco said the Philippine microfinance industry services over a
million clients with consolidated outstanding loans of over P8 billion.
"Even better, the combined savings of the banks' microfinance clients
have reached P8.9 billion, an amount surpassing their total loans," he said.
These data, experts said, point out that the poor are good borrowers
despite hurdles they face.
Yunus offered: "Being defaulter is not a problem for me. This does not
imply that a borrower is bad borrower. This only means there is some
provisioning needed.
"We have the ability to end poverty in the world. We just need to come
together and use our creative power. Initiatives form citizens and
social business can make this happen," he noted. — BM, GMA News
By SIEGFRID O. ALEGADO, GMA NewsOctober 9, 2013 7:34pm
The Bangko ng Sentral ng Pilipinas wants to measure the effectiveness of
the Philippine microfinance industry – touted as one of the best in the
world – in alleviating poverty, the central bank chief said.
"We see the value of collecting evidence and data that conclusively
affirms… that access to financial services empowers households to better
manage their resources and improve the quality of their lives," central
bank Governor Amando Tetangco Jr. said in his speech at the Microcredit
Summit Campaign Wednesday.
Microfinacing provides credit to poor individuals wanting to start small
businesses, like mom and pop shops, but who cannot access loans from big
banks because they do not have collateral.
It is largely provided by rural banks and non-government institutions.
Pia Bernadette Roman-Tayag, BSP head for financial inclusion, said on
the sidelines of the summit that the central bank is currently studying
the possibility of a nationwide financial inclusion survey to measure
microfinance sector's effectiveness.
"We want to know, beyond anecdotal evidence, if financial inclusion
initiatives are bearing fruit," said Tayag.
In an interview, Muhammad Yunus, a Nobel laureate for developing the
concepts of microcredit and microfinance, shared that in Bangladesh
effectiveness of microfinance is measured through a set of indicators
that include access to potable drinking water and sanitation as well as
savings for emergencies.
Tetangco, meanwhile,underscored the importance of providing a regulatory
environment to reduce the barriers to the poor's financial access.
He cited regulatory initiatives such as consumer education and employing
rules governing micro-housing and micro-agri loans and the distribution
of microinsurance,
"The result is a regulatory environment which recognizes that the
financial needs of the poor and the unbanked are as varied as the
regular financial consumer," Tetangco said.
Such regulations have made the Economist Intelligence Unit cite the
Philippine microfinance industry as one of the best in the world.
Mila Mercardo-Bunker, chairperson of the Microfinance Council of the
Philippines Inc., said the local microfinance industry remains healthy.
"The repayment rate on microfinance NGOs is at 95 percent, while for
rural banks engaged in microfinance it is at 85 percent," she told GMA
News Online in an interview.
Tetangco said the Philippine microfinance industry services over a
million clients with consolidated outstanding loans of over P8 billion.
"Even better, the combined savings of the banks' microfinance clients
have reached P8.9 billion, an amount surpassing their total loans," he said.
These data, experts said, point out that the poor are good borrowers
despite hurdles they face.
Yunus offered: "Being defaulter is not a problem for me. This does not
imply that a borrower is bad borrower. This only means there is some
provisioning needed.
"We have the ability to end poverty in the world. We just need to come
together and use our creative power. Initiatives form citizens and
social business can make this happen," he noted. — BM, GMA News
Microfinance gaining ground
Microfinance gaining ground
MICROFINANCE continues to grow in the country, the Bangko Sentral ng
Pilipinas (BSP) chief said, as the regulator and the private sector work
to create a viable environment for the industry.
"One of our principal thrusts is to develop a financial system that is
inclusive and reaches out to the unbanked," BSP Governor Amando M.
Tetangco, Jr. said in his speech yesterday during a summit on poverty.
"An inclusive financial system makes for a more stable financial system;
equally important, it enables us to help improve the lives of our
people," he added.
This led the central bank to venture into microfinance -- its flagship
program for poverty alleviation -- in 2000.
"Clearly, there is a need for intervention to accelerate the process of
bringing down the benefits of growth to the grassroots," Mr. Tetangco said.
He noted that more and more Filipinos have kept savings and gained
access to credit through the spread of microfinance.
The combined savings of banks' microfinance clients reached P8.9 billion
as of June, 8.27% higher than the P8.22 billion registered in the first
quarter.
Microfinance loans stood at P8 billion, serving over one million clients.
The level was unchanged from the year before, the BSP chief said,
because microfinance loans are short-term in nature, having a tenor of
up to 90 days.
The savings of clients, he pointed out, surpassed the loans they took
out during the period. "This tells us that microfinance clients have
attained a level of financial independence from gaining access to
microcredit."
He added that the default rate of borrowers remained "low."
At present there are about 186 banks with microfinance operations.
Aside from rural banks, big banks have also entered the lucrative
business of microfinance.
Among them are Rizal Microbank, one of the thrift bank subsidiaries of
Rizal Commercial Banking Corp.; East West Banking Corp., through its
purchase of Mindanao-based Green Bank of Caraga; and Robinsons Bank Corp.
Meanwhile, the central bank has launched a nationwide survey to measure
the impact of microfinance on its clients.
"Aside from anecdotal evidence, it would be ideal to have metrics that
will give us solid data on how we are doing and how we can make things
even better," Mr. Tetangco said.
Pia Roman-Tayag, who heads the central bank's financial inclusion
department, added: "We want evidence-based policy making ... to see if
we are making progress." -- Ann Rozainne R. Gregorio
MICROFINANCE continues to grow in the country, the Bangko Sentral ng
Pilipinas (BSP) chief said, as the regulator and the private sector work
to create a viable environment for the industry.
"One of our principal thrusts is to develop a financial system that is
inclusive and reaches out to the unbanked," BSP Governor Amando M.
Tetangco, Jr. said in his speech yesterday during a summit on poverty.
"An inclusive financial system makes for a more stable financial system;
equally important, it enables us to help improve the lives of our
people," he added.
This led the central bank to venture into microfinance -- its flagship
program for poverty alleviation -- in 2000.
"Clearly, there is a need for intervention to accelerate the process of
bringing down the benefits of growth to the grassroots," Mr. Tetangco said.
He noted that more and more Filipinos have kept savings and gained
access to credit through the spread of microfinance.
The combined savings of banks' microfinance clients reached P8.9 billion
as of June, 8.27% higher than the P8.22 billion registered in the first
quarter.
Microfinance loans stood at P8 billion, serving over one million clients.
The level was unchanged from the year before, the BSP chief said,
because microfinance loans are short-term in nature, having a tenor of
up to 90 days.
The savings of clients, he pointed out, surpassed the loans they took
out during the period. "This tells us that microfinance clients have
attained a level of financial independence from gaining access to
microcredit."
He added that the default rate of borrowers remained "low."
At present there are about 186 banks with microfinance operations.
Aside from rural banks, big banks have also entered the lucrative
business of microfinance.
Among them are Rizal Microbank, one of the thrift bank subsidiaries of
Rizal Commercial Banking Corp.; East West Banking Corp., through its
purchase of Mindanao-based Green Bank of Caraga; and Robinsons Bank Corp.
Meanwhile, the central bank has launched a nationwide survey to measure
the impact of microfinance on its clients.
"Aside from anecdotal evidence, it would be ideal to have metrics that
will give us solid data on how we are doing and how we can make things
even better," Mr. Tetangco said.
Pia Roman-Tayag, who heads the central bank's financial inclusion
department, added: "We want evidence-based policy making ... to see if
we are making progress." -- Ann Rozainne R. Gregorio
Subscribe to:
Posts (Atom)