Landbank to handle online government collections, transactions
By Iris C. Gonzales (The Philippine Star) Updated November 08, 2012
12:00 AM Comments (1)
MANILA, Philippines - The Bureau of the Treasury (BTr) has tapped the
Land Bank of the Philippines (Landbank) as the payment consolidator and
settle bank for collections through the so-called National Single Window
(NSW).
The NSW is an Internet-based platform that is seen to improve trade by
allowing single submission of applications for licenses, permits and
other papers required to transact with government.
It aims to put in place a single interface that will link traders with
concerned government agencies.
The Bureau of Customs, the government's second largest revenue agency,
has been pushing for the implementation of the NSW to improve trade.
Landbank recently signed the agreement with the Treasury and BancNet Inc.
Landbank president and CEO Gilda Pico said the agreement would pave the
way for faster trade processes in the country.
"This next step enables the electronic payment of export-import
clearances and trade related services through the BancNet Internet
Payment Gateway. It will further speed up trade transactions and save
clients from the need to run to and from different agencies for their
payments," Pico said.
Landbank is now an institutional member of the BancNet ATM Network, the
largest inter-bank network in the country connecting more than 6,000
ATMs of 91 member banks, the bank said in its statement.
BancNet, meanwhile, operates the Internet Payment Gateway connected to
the NSW portal.
According to the Philippine NSW website, the Phase One preparations
involve the setup and installation of network interconnections for all
40 government agencies. It also involves the installation of a VOIP or
Voice Over Internet Protocol system and email for all 40 agencies.
"Implementation will be undertaken of selective systems: Nomination of
license, permit, or clearance in each of the 10 agencies; Orientation
and user training for the nominated personnel from the 10 agencies and
selected broker and traders," it said.
The platform would help curb the problem of smuggling, which has
resulted in annual revenue losses of P60 billion for the government. The
NSW would prepare the country for a possible regional single window by
2015, Customs Commissioner Ruffy Biazon said.
The implementation of the NSW is part of efforts to improve the business
environment and governance in the country, he said.
It is also in line with the thrust of the Association of Southeast Asian
Nations (ASEAN) to establish the ASEAN Single Window, aimed to
facilitate trade efficiencies between member countries.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Thursday, November 8, 2012
Globe GCash, AmEx tie-up now allows Filipino users to shop online
Globe GCash, AmEx tie-up now allows Filipino users to shop online
Published on Wednesday, 31 October 2012 19:12 Written by Jun Vallecera /
Reporter
IT is now possible to shop online even without a credit card and on
Internet stores such as those in the United States under a service
jointly provided by Globe Telecoms and the financial services firm
American Express.
Globe GCash users, the homegrown e-payments system developed by the
telecommunications arm of the Ayala Group, has linked up with the global
payments platform of American Express, making it possible for Filipinos
to shop online even without being inventive about it.
Prior to the Globe-Amex tie-up, only the technology-savvy Filipino and
his friends were able to shop online as long as they used acceptable
credit cards to go with the service.
"You can't shop online, say in Amazon.com, if you don't have a credit
card and even if you do have one, you have to figure out for yourself
how to get the goods delivered to the Philippines since most US online
sites only deliver within the US. With the GCASH American Express
Virtual Card, you simply need your GCASH wallet to pay for your
purchases. We provide you with a personalized US address where your
goods can be delivered and from there, you can have them shipped to your
address in the Philippines at very low shipping rates" Paolo Baltao,
President of GXI, said in a statement.
With the tie-up, one can now buy apps, music or videos for one's smart
phone or access the popular iTunes store owned by Apple Inc., he said.
Ernest Cu, Globe President and CEO, lauded Globe GCash and American
Express for launching a service that covers not only paying for goods
purchased online but also a way of getting it into the country in a very
economical manner.
"Imagine shopping at Best Buy, K-Mart or Amazon and getting all these
offers and not being able to buy them, or being able to buy them but
having no way of getting the items here since most US online sites only
deliver within the United States. With the new GCASH American Express
Virtual Card, we are giving the Filipino consumer access to US and other
global sites," Cu said.
Getting the GCASH American Express Virtual Card is fast and easy.
Simply register the subscriber's GCASH wallet and email address online
at www.globe.com.ph/gcash-amex.
Once GCASH has validated the account, the customer will immediately
receive a virtual card number, a personalized US shipping address, and
other pertinent information via e-mail.
First-time subscribers get a one month free trial. After the trial,
subscribers can continue with the subscription by paying as low as P250
per year via GCASH or charge it to their postpaid bill. Monthly and
semi-annual subscriptions are also available.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on Wednesday, 31 October 2012 19:12 Written by Jun Vallecera /
Reporter
IT is now possible to shop online even without a credit card and on
Internet stores such as those in the United States under a service
jointly provided by Globe Telecoms and the financial services firm
American Express.
Globe GCash users, the homegrown e-payments system developed by the
telecommunications arm of the Ayala Group, has linked up with the global
payments platform of American Express, making it possible for Filipinos
to shop online even without being inventive about it.
Prior to the Globe-Amex tie-up, only the technology-savvy Filipino and
his friends were able to shop online as long as they used acceptable
credit cards to go with the service.
"You can't shop online, say in Amazon.com, if you don't have a credit
card and even if you do have one, you have to figure out for yourself
how to get the goods delivered to the Philippines since most US online
sites only deliver within the US. With the GCASH American Express
Virtual Card, you simply need your GCASH wallet to pay for your
purchases. We provide you with a personalized US address where your
goods can be delivered and from there, you can have them shipped to your
address in the Philippines at very low shipping rates" Paolo Baltao,
President of GXI, said in a statement.
With the tie-up, one can now buy apps, music or videos for one's smart
phone or access the popular iTunes store owned by Apple Inc., he said.
Ernest Cu, Globe President and CEO, lauded Globe GCash and American
Express for launching a service that covers not only paying for goods
purchased online but also a way of getting it into the country in a very
economical manner.
"Imagine shopping at Best Buy, K-Mart or Amazon and getting all these
offers and not being able to buy them, or being able to buy them but
having no way of getting the items here since most US online sites only
deliver within the United States. With the new GCASH American Express
Virtual Card, we are giving the Filipino consumer access to US and other
global sites," Cu said.
Getting the GCASH American Express Virtual Card is fast and easy.
Simply register the subscriber's GCASH wallet and email address online
at www.globe.com.ph/gcash-amex.
Once GCASH has validated the account, the customer will immediately
receive a virtual card number, a personalized US shipping address, and
other pertinent information via e-mail.
First-time subscribers get a one month free trial. After the trial,
subscribers can continue with the subscription by paying as low as P250
per year via GCASH or charge it to their postpaid bill. Monthly and
semi-annual subscriptions are also available.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Monday, November 5, 2012
Landbank releases P4.7-B loans to agri sector
Landbank releases P4.7-B loans to agri sector
By Donnabelle L. Gatdula (The Philippine Star) Updated November 05, 2012
12:00 AM Comments (0)
MANILA, Philippines - State-run Land Bank of the Philippines has loaned
out an additional P4.7 billion from January to August this year to
support the continuing growth in the agricultural sector, a top bank
official said.
Landbank president and CEO Gilda Pico said releasing more loans to the
agricultural sector is consistent with their thrust towards food
sufficiency and increased agricultural productivity.
Pico said with these new loans, the total loan releases since the
program started in October 2010 amounted to P14.5 billion, benefiting
152 anchor firms and 410 cooperatives, farmers' organizations and NGO
producers.
These include P4.6 billion in loans to beneficiary projects, firms,
cooperatives and producers in Northern and Central Luzon; P3.5 billion
in Visayas; P3.4 billion in Mindanao; and P3.1 billion in Southern Luzon
"We, at Landbank, are pleased that the Food Supply Chain Program is
further gaining momentum as more farmers and fisherfolk coops and
organizations, SMEs, and NGO producers stand to benefit from this
program," Pico said.
"We are committed to seeing this program to fruition as we endeavor to
provide better opportunities and improve the lives of our priority sectors."
The Food Supply Chain Program provides financial assistance to key
players in the food system such as agricultural producers, service
providers, processors and various market players.
Pico said the program also forms market linkages between agricultural
producers and processors.
The program, she said, likewise offers capacity building support to
strengthen farmers' organizations and enable them to meet product
requirements of anchor firms.
She explained that anchors firms are, in turn, expected to buy the
produce of the participating cooperatives and organizations, and provide
technical assistance to improve productivity and product quality.
Among the projects now being implemented are hog fattening; oil palm
production and processing; fruits and vegetable production and
processing; rice and corn production, processing and trading; cardava
banana production and processing; fish production and processing; onion
production, cold storage and marketing; and sugarcane production and
milling.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
By Donnabelle L. Gatdula (The Philippine Star) Updated November 05, 2012
12:00 AM Comments (0)
MANILA, Philippines - State-run Land Bank of the Philippines has loaned
out an additional P4.7 billion from January to August this year to
support the continuing growth in the agricultural sector, a top bank
official said.
Landbank president and CEO Gilda Pico said releasing more loans to the
agricultural sector is consistent with their thrust towards food
sufficiency and increased agricultural productivity.
Pico said with these new loans, the total loan releases since the
program started in October 2010 amounted to P14.5 billion, benefiting
152 anchor firms and 410 cooperatives, farmers' organizations and NGO
producers.
These include P4.6 billion in loans to beneficiary projects, firms,
cooperatives and producers in Northern and Central Luzon; P3.5 billion
in Visayas; P3.4 billion in Mindanao; and P3.1 billion in Southern Luzon
"We, at Landbank, are pleased that the Food Supply Chain Program is
further gaining momentum as more farmers and fisherfolk coops and
organizations, SMEs, and NGO producers stand to benefit from this
program," Pico said.
"We are committed to seeing this program to fruition as we endeavor to
provide better opportunities and improve the lives of our priority sectors."
The Food Supply Chain Program provides financial assistance to key
players in the food system such as agricultural producers, service
providers, processors and various market players.
Pico said the program also forms market linkages between agricultural
producers and processors.
The program, she said, likewise offers capacity building support to
strengthen farmers' organizations and enable them to meet product
requirements of anchor firms.
She explained that anchors firms are, in turn, expected to buy the
produce of the participating cooperatives and organizations, and provide
technical assistance to improve productivity and product quality.
Among the projects now being implemented are hog fattening; oil palm
production and processing; fruits and vegetable production and
processing; rice and corn production, processing and trading; cardava
banana production and processing; fish production and processing; onion
production, cold storage and marketing; and sugarcane production and
milling.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Peso seen to hit 30:$1 next year
Peso seen to hit 30:$1 next year
By Prinz P. Magtulis (The Philippine Star) Updated November 04, 2012
12:00 AM Comments (2)
CEBU, Philippines - The peso could strengthen to the 30-level against
the dollar next year as investors continue to flood emerging markets
regardless of the outcome of the US elections on Tuesday, an investment
bank said.
In its latest research note, Bank of America-Merrill Lynch (BofA) said
it expects the peso to average 41 to a dollar by the first quarter of
2013, before appreciating further to 39.80 for the rest of the year.
BofA's forecasts are stronger than the government's official assumption
of 42-45 next year. The peso closed at 41.18 on Wednesday, the last
trading day before the holidays.
A strong peso, while making imports cheaper, also makes export products
expensive abroad, possibly denting demand. It also trims the value of
remittances from overseas Filipinos.
"In our view, there is still further upside to EMFX (emerging market
foreign exchange) in the near term. PMI data has been decent for
September following the US Fed meeting, and we think investors will
continue to push currencies higher as they await further confirmation of
improved activity," BofA explained.
The US, considered as investors' safe haven, has been struggling to
boost growth four years after the global financial crisis. Its central
bank, the US Federal Reserve, said on September it is embarking on a
third round of bond-buying program meant to flood the economy with cash
to boost demand and growth.
The Fed announcement came after US manufacturing activity hit 51.5 in
the purchasing managers' index (PMI) in September, similar from August.
A reading above 50 indicates expansion.
A strong US manufacturing performance signals economic recovery for the
world superpower and thus, should drive investors to invest in risky
assets such as the peso.
The outcome of the US elections will also only have "neutral" effect to
emerging market currencies like the peso, which BofA expects to trade at
an average of 42 this quarter.
"Market pricing of an Obama victory is mild USD (US dollar) negative.
(Mitt) Romney victory, USD positive," it said.
This indicated that the market may view a re-election of US President
Barack Obama positively, giving them confidence to acquire risky assets
and thus lowering the dollar's value. In contrast, a Romney victory is
predicted to drive investors to safe havens like the dollar,
contributing to its appreciation.
"Both a Romney win and Great Rotation pose upside risks to US rates.
Historical evidence suggests this would be bearish for EM rates but
neutral for EMFX overall – though with significant differentiation
within it," BofA said.
In an effort to tame the peso's appreciation, the Bangko Sentral ng
Pilipinas (BSP) slashed its policy rates by another 25 basis points last
Oct. 25, bringing them to new record-lows of 3.5 percent and 5.5 percent
for overnight borrowing and lending, respectively.
BSP Governor Amando Tetangco Jr. said last Monday the central bank is
looking at using its macroprudential measures to manage capital flows
which drive the peso to strengthen. These measures include tweaking the
bank reserve requirements, real estate exposure ceilings and single
borrower's limit, among others.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
By Prinz P. Magtulis (The Philippine Star) Updated November 04, 2012
12:00 AM Comments (2)
CEBU, Philippines - The peso could strengthen to the 30-level against
the dollar next year as investors continue to flood emerging markets
regardless of the outcome of the US elections on Tuesday, an investment
bank said.
In its latest research note, Bank of America-Merrill Lynch (BofA) said
it expects the peso to average 41 to a dollar by the first quarter of
2013, before appreciating further to 39.80 for the rest of the year.
BofA's forecasts are stronger than the government's official assumption
of 42-45 next year. The peso closed at 41.18 on Wednesday, the last
trading day before the holidays.
A strong peso, while making imports cheaper, also makes export products
expensive abroad, possibly denting demand. It also trims the value of
remittances from overseas Filipinos.
"In our view, there is still further upside to EMFX (emerging market
foreign exchange) in the near term. PMI data has been decent for
September following the US Fed meeting, and we think investors will
continue to push currencies higher as they await further confirmation of
improved activity," BofA explained.
The US, considered as investors' safe haven, has been struggling to
boost growth four years after the global financial crisis. Its central
bank, the US Federal Reserve, said on September it is embarking on a
third round of bond-buying program meant to flood the economy with cash
to boost demand and growth.
The Fed announcement came after US manufacturing activity hit 51.5 in
the purchasing managers' index (PMI) in September, similar from August.
A reading above 50 indicates expansion.
A strong US manufacturing performance signals economic recovery for the
world superpower and thus, should drive investors to invest in risky
assets such as the peso.
The outcome of the US elections will also only have "neutral" effect to
emerging market currencies like the peso, which BofA expects to trade at
an average of 42 this quarter.
"Market pricing of an Obama victory is mild USD (US dollar) negative.
(Mitt) Romney victory, USD positive," it said.
This indicated that the market may view a re-election of US President
Barack Obama positively, giving them confidence to acquire risky assets
and thus lowering the dollar's value. In contrast, a Romney victory is
predicted to drive investors to safe havens like the dollar,
contributing to its appreciation.
"Both a Romney win and Great Rotation pose upside risks to US rates.
Historical evidence suggests this would be bearish for EM rates but
neutral for EMFX overall – though with significant differentiation
within it," BofA said.
In an effort to tame the peso's appreciation, the Bangko Sentral ng
Pilipinas (BSP) slashed its policy rates by another 25 basis points last
Oct. 25, bringing them to new record-lows of 3.5 percent and 5.5 percent
for overnight borrowing and lending, respectively.
BSP Governor Amando Tetangco Jr. said last Monday the central bank is
looking at using its macroprudential measures to manage capital flows
which drive the peso to strengthen. These measures include tweaking the
bank reserve requirements, real estate exposure ceilings and single
borrower's limit, among others.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Saturday, October 27, 2012
PH jobless rate among highest in Asia
PH jobless rate among highest in Asia
By Ted P. Torres, The Philippine Star
Posted at 10/27/2012 9:10 AM | Updated as of 10/27/2012 9:22 AM
MANILA, Philippines - NSCB secretary general Jose Ramon G. Albert said
despite socioeconomic gains and positive growth in the gross domestic
product (GDP), poverty and unemployment in the Philippines remained
unchanged.
"The headcount poverty rate and other indicators of poverty have almost
remained unchanged for almost a decade – poverty incidence among the
Filipino population ranged between 24.9 to 26.5 percent during the
period," he said.
Albert noted that most of the other countries moved from being heavily
dependent on the agriculture sector to developing the manufacturing
sector, which offered better jobs, higher wages and set a decisive
impact on the country's economy. Roughly six of 10 poor underemployed
belong to the agriculture, forestry and hunting business in 2009.
However, the Philippines failed to follow suit.
Fresh data show that the Philippines had declining employment share in
the manufacturing sector while increasing employment in other sectors
and retaining a significant number in the agriculture sector.
Albert said among the classic examples are the cases of Vietnam and
China, which have made large strides in poverty reduction.
Poverty incidence in Vietnam was 63.7 percent in 1993 and went down to
16.9 percent in 2008. In China, poverty incidence was 60.2 percent in
1990, which dropped to just 13.1 percent in 2008.
In terms of their working poor, Vietnam's proportion of working poor
went down from 71.5 percent in 1995 to 20.4 percent in 2006. China, on
the other hand, registered a 73.1 percent proportion of working poor in
1992, which went down to 18.3 percent in 2005.
"In both these countries, the share of employed persons in agriculture,
forestry, and hunting has been decreasing while the share of those in
manufacturing has been increasing. In other words, the poor (from
agriculture) managed to exit from poverty by getting better employment,"
the NSCB head said.
Lack of opportunities for the farmers result in low educational levels
in the agriculture sector, which in turn, account for the low employment
rate. Nearly three out of every five (59.3 percent) of the working poor
are elementary undergraduate or graduate.
The NSCB revealed that poor underemployed Filipinos are aged between 35
and 44 in 2006 and 2009. Most of the poor underemployed are married
(72.2 percent in 2006 and 69.9 percent in 2009) and male (71.8 percent
in 2006 and 70.4 percent in 2009).
Poverty among the underemployed consistently decreases as educational
achievement increases.
Most of the poor underemployed are working as laborers and unskilled
workers (50.1 percent in 2006 and 53 percent in 2009) and, farmers,
forestry workers and fishermen (31.1 percent in 2006 and 27.7 percent in
2009).
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
By Ted P. Torres, The Philippine Star
Posted at 10/27/2012 9:10 AM | Updated as of 10/27/2012 9:22 AM
MANILA, Philippines - NSCB secretary general Jose Ramon G. Albert said
despite socioeconomic gains and positive growth in the gross domestic
product (GDP), poverty and unemployment in the Philippines remained
unchanged.
"The headcount poverty rate and other indicators of poverty have almost
remained unchanged for almost a decade – poverty incidence among the
Filipino population ranged between 24.9 to 26.5 percent during the
period," he said.
Albert noted that most of the other countries moved from being heavily
dependent on the agriculture sector to developing the manufacturing
sector, which offered better jobs, higher wages and set a decisive
impact on the country's economy. Roughly six of 10 poor underemployed
belong to the agriculture, forestry and hunting business in 2009.
However, the Philippines failed to follow suit.
Fresh data show that the Philippines had declining employment share in
the manufacturing sector while increasing employment in other sectors
and retaining a significant number in the agriculture sector.
Albert said among the classic examples are the cases of Vietnam and
China, which have made large strides in poverty reduction.
Poverty incidence in Vietnam was 63.7 percent in 1993 and went down to
16.9 percent in 2008. In China, poverty incidence was 60.2 percent in
1990, which dropped to just 13.1 percent in 2008.
In terms of their working poor, Vietnam's proportion of working poor
went down from 71.5 percent in 1995 to 20.4 percent in 2006. China, on
the other hand, registered a 73.1 percent proportion of working poor in
1992, which went down to 18.3 percent in 2005.
"In both these countries, the share of employed persons in agriculture,
forestry, and hunting has been decreasing while the share of those in
manufacturing has been increasing. In other words, the poor (from
agriculture) managed to exit from poverty by getting better employment,"
the NSCB head said.
Lack of opportunities for the farmers result in low educational levels
in the agriculture sector, which in turn, account for the low employment
rate. Nearly three out of every five (59.3 percent) of the working poor
are elementary undergraduate or graduate.
The NSCB revealed that poor underemployed Filipinos are aged between 35
and 44 in 2006 and 2009. Most of the poor underemployed are married
(72.2 percent in 2006 and 69.9 percent in 2009) and male (71.8 percent
in 2006 and 70.4 percent in 2009).
Poverty among the underemployed consistently decreases as educational
achievement increases.
Most of the poor underemployed are working as laborers and unskilled
workers (50.1 percent in 2006 and 53 percent in 2009) and, farmers,
forestry workers and fishermen (31.1 percent in 2006 and 27.7 percent in
2009).
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Friday, October 26, 2012
Microfinance Needs To Reach Poor
Microfinance Needs To Reach Poor
By EDU LOPEZ
October 26, 2012, 5:32pm
The Asian Development Bank (ADB) has stressed the need for a sustainable
micro-finance assistance to reach more of the poor in Asia and the Pacific.
In a new study, "Micro-finance Development Strategy 2000: Sector
Performance and Client Welfare," ADB, emphasizes the twin goals of
micro-finance — reaching the poor and being financially sustainable.
With microfinance becoming increasingly commercialized in the region,
the study stresses the role of government and agencies such as ADB in
addressing the financial needs of the poor, while at the same time
ensuring the institutional sustainability of micro-finance providers.
"Despite the increasing popularity of micro-finance in recent years,
expanding the access of poor households to institutional financial
services remains a great challenge to governments and development
agencies," says the director-general of independent evaluation, Vinod
Thomas.
The study finds that the penetration of micro-finance among the poor in
Asia and the Pacific remains low. As of the end of 2010, some 20% of the
population living below the poverty level of $1.25 per day had direct
access to microfinance services in 21 developing countries receiving ADB
micro-finance support. This level was below ADB's goals.
Micro-finance is seen in the region as an important means to helping
low-income households take advantage of economic opportunities and
improve living standards. But the degree to which it actually reaches
the poor and improves their welfare is under public scrutiny.
A review of two programs in Pakistan and Viet Nam points to an apparent
trade-off between targeting and effectiveness of micro-finance. Smaller
loans were better at targeting the poor, but less effective than larger
loans in producing welfare benefits.
In the Pakistan program, the average loan was $195 but reached
substantially more borrowers living below the national poverty line than
in the Viet Nam program, where the average loan was $1,972. The study
found more positive direct and indirect welfare benefits in the Viet Nam
program than in the Pakistan program.
The study says that for micro-finance to have a greater impact on
reducing poverty in the region, it needs to better target the poor and
focus more on educating them in using basic financial services, as well
as more effectively link micro-finance services to complementary
pro-poor interventions.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
By EDU LOPEZ
October 26, 2012, 5:32pm
The Asian Development Bank (ADB) has stressed the need for a sustainable
micro-finance assistance to reach more of the poor in Asia and the Pacific.
In a new study, "Micro-finance Development Strategy 2000: Sector
Performance and Client Welfare," ADB, emphasizes the twin goals of
micro-finance — reaching the poor and being financially sustainable.
With microfinance becoming increasingly commercialized in the region,
the study stresses the role of government and agencies such as ADB in
addressing the financial needs of the poor, while at the same time
ensuring the institutional sustainability of micro-finance providers.
"Despite the increasing popularity of micro-finance in recent years,
expanding the access of poor households to institutional financial
services remains a great challenge to governments and development
agencies," says the director-general of independent evaluation, Vinod
Thomas.
The study finds that the penetration of micro-finance among the poor in
Asia and the Pacific remains low. As of the end of 2010, some 20% of the
population living below the poverty level of $1.25 per day had direct
access to microfinance services in 21 developing countries receiving ADB
micro-finance support. This level was below ADB's goals.
Micro-finance is seen in the region as an important means to helping
low-income households take advantage of economic opportunities and
improve living standards. But the degree to which it actually reaches
the poor and improves their welfare is under public scrutiny.
A review of two programs in Pakistan and Viet Nam points to an apparent
trade-off between targeting and effectiveness of micro-finance. Smaller
loans were better at targeting the poor, but less effective than larger
loans in producing welfare benefits.
In the Pakistan program, the average loan was $195 but reached
substantially more borrowers living below the national poverty line than
in the Viet Nam program, where the average loan was $1,972. The study
found more positive direct and indirect welfare benefits in the Viet Nam
program than in the Pakistan program.
The study says that for micro-finance to have a greater impact on
reducing poverty in the region, it needs to better target the poor and
focus more on educating them in using basic financial services, as well
as more effectively link micro-finance services to complementary
pro-poor interventions.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Philippines 4th In Microfinance Ranking
Philippines 4th In Microfinance Ranking
EIU Report
By CHINO S. LEYCO
October 26, 2012, 5:35pm
The Philippines has ranked fourth in an annual global survey on
microfinance business environment, based on the Economist Intelligence
Unit's (EIU) report, citing the country's stable market.
According to the report, the country scored 63.3 points, up by 4.8
points, or two notches higher compared with last year's Global
Microscope on the Microfinance Business Environment report.
The Philippines ranked fourth out of 55 countries in an annual global
survey, trailing behind Peru (79.8 points), Bolivia (71.8 points), and
Pakistan (67.4 points).
The Microscope 2012 survey was conducted in the 12 months ending in June.
EIU explained the rankings were based on regulatory framework and
practices, in which the Philippines was placed on top along with Peru;
and the supporting institutional framework, wherein the country ranked
15 along with Brazil, Nicaragua, and Uruguay.
The survey also noted the "stability" of microfinance markets, if they
are vulnerable to any political shocks.
"The Bangko Sentral ng Pilipinas continues to promote an enabling
environment for microfinance, seeing it as one of its key poverty
reduction efforts," the report read.
The survey has also recognized key efforts of the BSP such as increasing
the ceiling for microfinance loans to P300,000 from P150,000 and the
lower house's approved measure allowing foreign ownership of up to 40
percent in rural banks.
The proposed measure, however, remains pending in the Senate.
In January, the BSP approved a microfinance loan called "microfinance
plus" that microenterprises and small businesses can avail of to fund
their expanding operations, allowing borrowers to take out a maximum of
P300,000 to fund their growing business
Microfinance, generally, has originally intended to mean financing for
microenterprises or small livelihood activities but the BSP has since
expanded the loan products to include microfinance housing, micro-agri
loans, micro-insurance and micro-deposits.
For all loans, it starts with P150,000 up to a maximum of P300,000.
Currently, there are 202 microfinance institutions operating in the
Philippines.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
EIU Report
By CHINO S. LEYCO
October 26, 2012, 5:35pm
The Philippines has ranked fourth in an annual global survey on
microfinance business environment, based on the Economist Intelligence
Unit's (EIU) report, citing the country's stable market.
According to the report, the country scored 63.3 points, up by 4.8
points, or two notches higher compared with last year's Global
Microscope on the Microfinance Business Environment report.
The Philippines ranked fourth out of 55 countries in an annual global
survey, trailing behind Peru (79.8 points), Bolivia (71.8 points), and
Pakistan (67.4 points).
The Microscope 2012 survey was conducted in the 12 months ending in June.
EIU explained the rankings were based on regulatory framework and
practices, in which the Philippines was placed on top along with Peru;
and the supporting institutional framework, wherein the country ranked
15 along with Brazil, Nicaragua, and Uruguay.
The survey also noted the "stability" of microfinance markets, if they
are vulnerable to any political shocks.
"The Bangko Sentral ng Pilipinas continues to promote an enabling
environment for microfinance, seeing it as one of its key poverty
reduction efforts," the report read.
The survey has also recognized key efforts of the BSP such as increasing
the ceiling for microfinance loans to P300,000 from P150,000 and the
lower house's approved measure allowing foreign ownership of up to 40
percent in rural banks.
The proposed measure, however, remains pending in the Senate.
In January, the BSP approved a microfinance loan called "microfinance
plus" that microenterprises and small businesses can avail of to fund
their expanding operations, allowing borrowers to take out a maximum of
P300,000 to fund their growing business
Microfinance, generally, has originally intended to mean financing for
microenterprises or small livelihood activities but the BSP has since
expanded the loan products to include microfinance housing, micro-agri
loans, micro-insurance and micro-deposits.
For all loans, it starts with P150,000 up to a maximum of P300,000.
Currently, there are 202 microfinance institutions operating in the
Philippines.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Banks’ NPL-to-total loans ratio reaches record low
Banks' NPL-to-total loans ratio reaches record low
By Michelle V. Remo
Philippine Daily Inquirer
4:15 am | Friday, October 26th, 2012
The country's big banks kept their exposure to bad debts at a record low
in August even as they extended more loans to individual and corporate
borrowers.
According to the Bangko Sentral ng Pilipinas, the "comfortable" ratio of
non-performing loans (NPL) was one of the indications that the banking
sector remained healthy and relatively unharmed by the crisis
confronting financial institutions in the eurozone.
Based on data from the BSP, universal and commercial banks' NPL
ratio—the proportion of bad debts to their total loan portfolio—stood at
a historic low of 2.08 percent in August.
The latest ratio was unchanged from the previous month, but was even
lower than the already comfortable 2.52 percent recorded in August last
year.
Regulators said banks are encouraged to lend more to help fuel faster
growth of the economy, but at the same time required to keep their
exposure to bad debts within manageable levels.
Bank loans become "bad debts" or are defined as "non-performing" when
these remain unpaid for a specified period of time.
Data further showed that outstanding loans of universal and commercial
banks amounted to P3.38 trillion by the end of August, up by about 10
percent from P3.06 trillion as of the same period last year.
Industry players said the increase in the loan portfolios of banks
proved that there is appetite for lending, especially since banks are
currently enjoying significant levels of liquidity.
Of the outstanding loans as of end-August, some P70.43 billion was
classified as non-performing. This was down year on year by nearly 5
percent from P76.96 billion.
Central bank officials said the decline in NPLs showed that banks were
keeping prudent credit standards even as they move to lend out more to
clients.
Officials said credit growth in the banking system partly aided the
economy's favorable performance in the first semester, when it grew by
an above-target 6.1 percent.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE
Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
By Michelle V. Remo
Philippine Daily Inquirer
4:15 am | Friday, October 26th, 2012
The country's big banks kept their exposure to bad debts at a record low
in August even as they extended more loans to individual and corporate
borrowers.
According to the Bangko Sentral ng Pilipinas, the "comfortable" ratio of
non-performing loans (NPL) was one of the indications that the banking
sector remained healthy and relatively unharmed by the crisis
confronting financial institutions in the eurozone.
Based on data from the BSP, universal and commercial banks' NPL
ratio—the proportion of bad debts to their total loan portfolio—stood at
a historic low of 2.08 percent in August.
The latest ratio was unchanged from the previous month, but was even
lower than the already comfortable 2.52 percent recorded in August last
year.
Regulators said banks are encouraged to lend more to help fuel faster
growth of the economy, but at the same time required to keep their
exposure to bad debts within manageable levels.
Bank loans become "bad debts" or are defined as "non-performing" when
these remain unpaid for a specified period of time.
Data further showed that outstanding loans of universal and commercial
banks amounted to P3.38 trillion by the end of August, up by about 10
percent from P3.06 trillion as of the same period last year.
Industry players said the increase in the loan portfolios of banks
proved that there is appetite for lending, especially since banks are
currently enjoying significant levels of liquidity.
Of the outstanding loans as of end-August, some P70.43 billion was
classified as non-performing. This was down year on year by nearly 5
percent from P76.96 billion.
Central bank officials said the decline in NPLs showed that banks were
keeping prudent credit standards even as they move to lend out more to
clients.
Officials said credit growth in the banking system partly aided the
economy's favorable performance in the first semester, when it grew by
an above-target 6.1 percent.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE
Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Thursday, October 25, 2012
Financial literacy and information asymmetry
BY BRIAN JERIC MORILLO, IDEA
Financial literacy and information asymmetry
THE GOOD NEWS is that Filipinos are now more adept at managing their
finances. The bad news is that the Philippines' financial quotient still
lags behind its regional peers. These were some of the findings of the
most recent Financial Quotient (Fin-Q) Survey by international financial
services conglomerate, Citi.
In previous years, financial literacy among Filipinos has always fallen
below the 50-point mark out of a perfect score of 100. The Philippines
recorded its lowest grade in 2008 when it got an overall score of 46.6
points. This year, however, showed a notable improvement as the country
crossed the halfway mark of the Fin-Q Survey for the very first time at
52.6 points. Moreover, the survey indicated that six out of ten
Filipinos feel that they have a "good" or "very good" grasp of money
management. Similarly, four out of five say that they are "optimistic"
about their financial future.
Though the score is still behind the regional score of 54.5 points, the
numbers suggest that Filipinos are now more concerned about planning
their personal finances while at the same time trying to improve their
financial security. Filipinos are now saving more, managing credit,
seeking investments and spending on insurance. This is, however, just
the first step in improving the financial security of Filipinos.
While the management of finances is geared towards achieving financial
security, individuals who have not been properly educated just might
suffer losing their lifetime savings. This is especially true when
dealing with investment vehicles. Saving is one part of the process and
where to put one's money is another question. Of the two aspects, the
latter will pose potential problems. An individual has to know the
different levels of risk associated with diverse potential investment
vehicles on which he or she will put money on.
What is more problematic, however, is the underlying issue of what is
called the "principal-agent problem." This situation can lead to "moral
hazard" situations, defined by R. Pindyck and D. Rubifeld as a problem
that occurs when the unobserved actions of an agent affects the
probability or magnitude of payment to the principal. These unmonitored
actions by the agent (the organization that receives the investment) can
lead to disastrous results.
An example is when top management exercises a myopic or short-term
perspective over the company's financial performance rather than
focusing on the long-term financial health of the company. They tend to
forego plans that will have long-term beneficial effects because their
compensation and bonuses are very much tied to short-term gains. This is
exactly what happened during the housing bubble in the United States.
Because compensation and bonus schemes do not purposely underscore the
goal of long-term financial success, top management of investment banks
like Goldman Sachs sometimes secretly bet against the very products they
sold to their investors. In addition, banks made risky investments out
of their depositors' money. These precarious behaviors are the cause of
the degradation of equity wealth not only among Americans, but citizens
of other countries as well.
These events are consequences of "information asymmetry" in the market.
As everyone knows, information is costly to acquire, hence, some people
know more than others. Moreover, having the necessary information can
mean power on the part of the holder. Thus, not all types of information
will be readily available for the consumer's consumption. With very
little information, Filipinos should be creative in finding means to
avoid the adverse effects of information asymmetry.
In this regard, the government can step in not only in educating people
on ways to assess possible investments, (and, hence, not be ensnared by
unworthy companies) but also in minimizing adverse behaviors of company
officers.
Recently, the Securities and Exchange Commission announced an overhaul
of disclosure rules with respect to executive and director compensation
schemes. They are considering requiring companies to disclose more
detailed information about compensation schemes available to company top
officials. This is a laudable move on the part of the government to
protect the interest of investors. These revised rules will definitely
improve transparency with respect to compensation, hence, giving
potential investors the opportunity to assess the probability of company
officials engaging in risky activities.
Indeed, it is good news that more and more Filipinos are now minding
their finances. With many Filipinos just starting out, two extremes
highlight what could possibly happen. They might end up parking their
money in riskless investments and, thus, miss out on value. Or, they
might find themselves trapped in very risky investments and, thus, lose
their money. The experience of advanced economies should serve as a
lesson. If the more sophisticated citizens of developed countries made
huge mistakes, Filipinos should all the more be cautious.
The Institute for Development and Econometric Analysis (IDEA), Inc. is a
non-stock, non-partisan institution dedicated to high-quality economic
research, instruction, and communication. The views and opinions
expressed herein are those of the author and do not necessarily reflect
those of the organization. For questions and inquiries, please contact
Remrick Patagan via ideainc.mail@gmail.com or telefax no. 920-6872.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Financial literacy and information asymmetry
THE GOOD NEWS is that Filipinos are now more adept at managing their
finances. The bad news is that the Philippines' financial quotient still
lags behind its regional peers. These were some of the findings of the
most recent Financial Quotient (Fin-Q) Survey by international financial
services conglomerate, Citi.
In previous years, financial literacy among Filipinos has always fallen
below the 50-point mark out of a perfect score of 100. The Philippines
recorded its lowest grade in 2008 when it got an overall score of 46.6
points. This year, however, showed a notable improvement as the country
crossed the halfway mark of the Fin-Q Survey for the very first time at
52.6 points. Moreover, the survey indicated that six out of ten
Filipinos feel that they have a "good" or "very good" grasp of money
management. Similarly, four out of five say that they are "optimistic"
about their financial future.
Though the score is still behind the regional score of 54.5 points, the
numbers suggest that Filipinos are now more concerned about planning
their personal finances while at the same time trying to improve their
financial security. Filipinos are now saving more, managing credit,
seeking investments and spending on insurance. This is, however, just
the first step in improving the financial security of Filipinos.
While the management of finances is geared towards achieving financial
security, individuals who have not been properly educated just might
suffer losing their lifetime savings. This is especially true when
dealing with investment vehicles. Saving is one part of the process and
where to put one's money is another question. Of the two aspects, the
latter will pose potential problems. An individual has to know the
different levels of risk associated with diverse potential investment
vehicles on which he or she will put money on.
What is more problematic, however, is the underlying issue of what is
called the "principal-agent problem." This situation can lead to "moral
hazard" situations, defined by R. Pindyck and D. Rubifeld as a problem
that occurs when the unobserved actions of an agent affects the
probability or magnitude of payment to the principal. These unmonitored
actions by the agent (the organization that receives the investment) can
lead to disastrous results.
An example is when top management exercises a myopic or short-term
perspective over the company's financial performance rather than
focusing on the long-term financial health of the company. They tend to
forego plans that will have long-term beneficial effects because their
compensation and bonuses are very much tied to short-term gains. This is
exactly what happened during the housing bubble in the United States.
Because compensation and bonus schemes do not purposely underscore the
goal of long-term financial success, top management of investment banks
like Goldman Sachs sometimes secretly bet against the very products they
sold to their investors. In addition, banks made risky investments out
of their depositors' money. These precarious behaviors are the cause of
the degradation of equity wealth not only among Americans, but citizens
of other countries as well.
These events are consequences of "information asymmetry" in the market.
As everyone knows, information is costly to acquire, hence, some people
know more than others. Moreover, having the necessary information can
mean power on the part of the holder. Thus, not all types of information
will be readily available for the consumer's consumption. With very
little information, Filipinos should be creative in finding means to
avoid the adverse effects of information asymmetry.
In this regard, the government can step in not only in educating people
on ways to assess possible investments, (and, hence, not be ensnared by
unworthy companies) but also in minimizing adverse behaviors of company
officers.
Recently, the Securities and Exchange Commission announced an overhaul
of disclosure rules with respect to executive and director compensation
schemes. They are considering requiring companies to disclose more
detailed information about compensation schemes available to company top
officials. This is a laudable move on the part of the government to
protect the interest of investors. These revised rules will definitely
improve transparency with respect to compensation, hence, giving
potential investors the opportunity to assess the probability of company
officials engaging in risky activities.
Indeed, it is good news that more and more Filipinos are now minding
their finances. With many Filipinos just starting out, two extremes
highlight what could possibly happen. They might end up parking their
money in riskless investments and, thus, miss out on value. Or, they
might find themselves trapped in very risky investments and, thus, lose
their money. The experience of advanced economies should serve as a
lesson. If the more sophisticated citizens of developed countries made
huge mistakes, Filipinos should all the more be cautious.
The Institute for Development and Econometric Analysis (IDEA), Inc. is a
non-stock, non-partisan institution dedicated to high-quality economic
research, instruction, and communication. The views and opinions
expressed herein are those of the author and do not necessarily reflect
those of the organization. For questions and inquiries, please contact
Remrick Patagan via ideainc.mail@gmail.com or telefax no. 920-6872.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
BSP approves Al-Amanah sale
By Ann Rozainne R. Gregorio, Reporter
BSP approves Al-Amanah sale
STATE-RUN Development Bank of the Philippines (DBP) has obtained the
Bangko Sentral ng Pilipinas' approval to sell its stake in the Al-Amanah
Islamic Investment Bank of the Philippines (Al-Amanah), a senior
official said.
"We have obtained the approval in principle for the divestment of our
stake in Al-Amanah," said Estrella E. Icasiano, DBP senior vice
president and head of investment banking and capital markets group, in a
phone interview yesterday.
The BSP issued its approval on Sept. 20.
Ms. Icasiano said DBP has yet to secure the approval of the Governance
Commission for GOCCs (GCG) to be able to proceed with the bidding
process for its 99.88% stake in the country's lone Islamic bank.
"Once we get the GCG approval, we will proceed with the next step of the
sale, which is the public bidding," she said.
DBP is regulated by the Bangko Sentral as a bank and also by the GCG,
which oversees state firms, as it is a government-owned and --controlled
corporation.
The state-run bank took over Al-Amanah in 2008 after the government
failed to privatize the smaller bank. It infused P1 billion into Al
Amanah and charted a rehabilitation plan for the bank, which was deeply
in the red.
It is selling Al Amanah as it does not have the expertise on Islamic
finance. Its planned exit from Al Amanah, which has since relaunched
branches but continues to incur losses, comes at a time when demand for
Islamic financing worldwide is on the rise.
For his part, Bangko Sentral Deputy Governor Nestor A. Espenilla, Jr.,
in a phone interview, said: "Yes, they were approved to dispose via
auction. It's in principle because we do not know who will buy DBP's
stake in the bank at this time. We also need to approve the buyer of the
bank."
The central bank, he said, examines investors' attributes before
approving any acquisition. These include amount of resources and
governance and management principles.
"If the bank is chartered as an Islamic bank, the investor should be
able to demonstrate the ability and expertise to run an Islamic bank,"
he further said.
Ms. Icasiano said that with two-and-a-half months before 2012 closes,
DBP's earlier target to sell its stake in Al-Amanah would likely "slide
to next year."
She reiterated that several foreign investors from the Middle East and
Malaysia have expressed interest in buying DBP's stake in the bank.
"There is a good number of interested parties. It is a combination of
banks and non-bank groups," she said.
"Aside from banks, businessmen and investor groups from the Middle East
have also expressed interest," she further said.
Al-Amanah, as an Islamic bank, is mandated to serve the banking needs of
the Muslim community in the country. It was formed by virtue of
Presidential Decree No. 264 issued by then President Ferdinand E. Marcos.
An Islamic bank adheres to the laws of the Koran, and as such, does not
charge interest to its clients but instead earns by acting like an
equity investor to its borrowers by forging partnerships, lease-to-own
deals and similar arrangements.
The government first attempted to privatize the Islamic bank sometime in
2000 after it started incurring losses in 1990.
From 1990 to 2007, Al-Amanah was managed by the Bureau of the Treasury.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
BSP approves Al-Amanah sale
STATE-RUN Development Bank of the Philippines (DBP) has obtained the
Bangko Sentral ng Pilipinas' approval to sell its stake in the Al-Amanah
Islamic Investment Bank of the Philippines (Al-Amanah), a senior
official said.
"We have obtained the approval in principle for the divestment of our
stake in Al-Amanah," said Estrella E. Icasiano, DBP senior vice
president and head of investment banking and capital markets group, in a
phone interview yesterday.
The BSP issued its approval on Sept. 20.
Ms. Icasiano said DBP has yet to secure the approval of the Governance
Commission for GOCCs (GCG) to be able to proceed with the bidding
process for its 99.88% stake in the country's lone Islamic bank.
"Once we get the GCG approval, we will proceed with the next step of the
sale, which is the public bidding," she said.
DBP is regulated by the Bangko Sentral as a bank and also by the GCG,
which oversees state firms, as it is a government-owned and --controlled
corporation.
The state-run bank took over Al-Amanah in 2008 after the government
failed to privatize the smaller bank. It infused P1 billion into Al
Amanah and charted a rehabilitation plan for the bank, which was deeply
in the red.
It is selling Al Amanah as it does not have the expertise on Islamic
finance. Its planned exit from Al Amanah, which has since relaunched
branches but continues to incur losses, comes at a time when demand for
Islamic financing worldwide is on the rise.
For his part, Bangko Sentral Deputy Governor Nestor A. Espenilla, Jr.,
in a phone interview, said: "Yes, they were approved to dispose via
auction. It's in principle because we do not know who will buy DBP's
stake in the bank at this time. We also need to approve the buyer of the
bank."
The central bank, he said, examines investors' attributes before
approving any acquisition. These include amount of resources and
governance and management principles.
"If the bank is chartered as an Islamic bank, the investor should be
able to demonstrate the ability and expertise to run an Islamic bank,"
he further said.
Ms. Icasiano said that with two-and-a-half months before 2012 closes,
DBP's earlier target to sell its stake in Al-Amanah would likely "slide
to next year."
She reiterated that several foreign investors from the Middle East and
Malaysia have expressed interest in buying DBP's stake in the bank.
"There is a good number of interested parties. It is a combination of
banks and non-bank groups," she said.
"Aside from banks, businessmen and investor groups from the Middle East
have also expressed interest," she further said.
Al-Amanah, as an Islamic bank, is mandated to serve the banking needs of
the Muslim community in the country. It was formed by virtue of
Presidential Decree No. 264 issued by then President Ferdinand E. Marcos.
An Islamic bank adheres to the laws of the Koran, and as such, does not
charge interest to its clients but instead earns by acting like an
equity investor to its borrowers by forging partnerships, lease-to-own
deals and similar arrangements.
The government first attempted to privatize the Islamic bank sometime in
2000 after it started incurring losses in 1990.
From 1990 to 2007, Al-Amanah was managed by the Bureau of the Treasury.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Tuesday, October 23, 2012
Universal Health Care: Roadmap to 2016
Universal Health Care: Roadmap to 2016
MIND YOUR BODY By Willie T. Ong, MD (The Philippine Star) Updated
October 23, 2012 12:00 AM Comments (0)
Since June of 2010, the Department of Health, under Secretary Enrique T.
Ona, has focused its efforts on attaining Universal Health Care for all
Filipinos.
Universal Health Care has three strategic thrusts, namely, 1) the
expansion in PhilHealth enrollment and benefits; 2) the improvement of
government hospitals, health centers, and other facilities; and 3) the
attainment of DOH's health-related Millennium Development Goals,
including a reduction in maternal mortality and infant mortality rates,
through the provision of health services.
These three goals are among the hardest to achieve, but their impact on
the lives of every Filipino is far-reaching. For each of the country's
health problems, the Department of Health has mapped out its strategic
plans. However, implementing these plans is easier said than done. If
the solutions to our health problems were easy, then these diseases
should have been eradicated years ago.
Within two years, here are some of the things the DOH has achieved for
universal health care:
• More people enrolled in PhilHealth. Starting 2011, the national
government has paid for the PhilHealth membership of 5.3 million poorest
families, comprising almost 25 million Filipinos, as identified by the
National Household Targeting System for Poverty Reduction of the
Department of Social Welfare and Development. For 2012, the premium
subsidy of these families was increased from P3.5 billion in 2011 to P
12.5 billion. These poor families are entitled to no-balance-billing (or
walang dagdag bayad) when they are admitted in a ward bed in any
government facility.
• Highest budget ever for DOH. Under Secretary Ona's term, the DOH
received the biggest budget increase, which is P42 billion for 2012 and
P53 billion for 2013. This figure is more than twice the DOH budget of
P23 billion in 2009. Secretary Ona once said, "As a surgeon, I know how
much our people need hospital care and medicines. I will lobby for the
DOH to get its needed budget."
• Improvement of health facilities. The DOH is in the process of
enhancing and upgrading health facilities to ensure that people have
access to quality health care. The national government has allotted
P13.5 billion for 2013 for the improvement of the national and local
government hospitals, health centers, and barangay health stations.
Secretary Ona has also started the National Hospital Reform Program,
wherein he has identified 25 to 30 DOH-retained hospitals for
modernization through private-public partnership (PPP). Seven of these
hospitals will be upgraded to give specialized care in heart surgery,
oncology, and organ transplantation, so that patients who will need
these services need not come to Manila or Cebu anymore.
• Attainment of the Millennium Development Goals. The DOH has employed
more nurses and health workers through the "RN Heals" volunteer nurses
program. Batch 1 deployed 10,000 nurses, batch 2 had 11,500 nurses, and
the latest batch 3 for 2012 will recruit 10,000 nurses and 3,000
midwives. Moreover, the DOH has deployed thousands of community health
teams. These teams of health workers travel house to house to teach
people about vaccination, cleanliness, maternal and child care, and
common diseases.
Seeing how the poor cannot buy their medicines, the DOH has also started
a new program of giving free maintenance medicines to poor patients.
Called the ComPack (complete treatment packs), this program has a budget
of P500 million a year.
To reduce the deaths of our children from severe diarrhea and pneumonia,
the DOH has included in the national immunization program the rotavirus
and pneumococcal vaccination initially for 700,000 infants belonging to
the 5.2 million NHTS families, the first country in Southeast Asia to do so.
Because of the department's efforts, the country is now closer to
achieving Universal Health Care by 2016. The DOH has laid the groundwork
for making this dream a reality.
The health department's vision is to achieve the following results:
•All Filipinos especially poor families will be enrolled in PhilHealth.
•PhilHealth support value for the patient's medical expenses will
increase from 34% in 2009 to 60% by 2016.
•Quality care will be provided in public facilities and public hospitals.
•The DOH will reach out to the grassroots. Poor families will be
informed and guided by community health teams for their health needs.
•Every family will have access to essential, quality, and affordable
health services, both in the prevention and treatment of diseases.
In the words of Secretary Ona, "The government cannot achieve this dream
alone. Universal Health Care will not be realized without the people's
commitment and partnership. We ask you, the private sector, the media,
and the people, to continue working with us with the same enthusiasm and
drive to help uplift the lives of the poorest members of our society."
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
MIND YOUR BODY By Willie T. Ong, MD (The Philippine Star) Updated
October 23, 2012 12:00 AM Comments (0)
Since June of 2010, the Department of Health, under Secretary Enrique T.
Ona, has focused its efforts on attaining Universal Health Care for all
Filipinos.
Universal Health Care has three strategic thrusts, namely, 1) the
expansion in PhilHealth enrollment and benefits; 2) the improvement of
government hospitals, health centers, and other facilities; and 3) the
attainment of DOH's health-related Millennium Development Goals,
including a reduction in maternal mortality and infant mortality rates,
through the provision of health services.
These three goals are among the hardest to achieve, but their impact on
the lives of every Filipino is far-reaching. For each of the country's
health problems, the Department of Health has mapped out its strategic
plans. However, implementing these plans is easier said than done. If
the solutions to our health problems were easy, then these diseases
should have been eradicated years ago.
Within two years, here are some of the things the DOH has achieved for
universal health care:
• More people enrolled in PhilHealth. Starting 2011, the national
government has paid for the PhilHealth membership of 5.3 million poorest
families, comprising almost 25 million Filipinos, as identified by the
National Household Targeting System for Poverty Reduction of the
Department of Social Welfare and Development. For 2012, the premium
subsidy of these families was increased from P3.5 billion in 2011 to P
12.5 billion. These poor families are entitled to no-balance-billing (or
walang dagdag bayad) when they are admitted in a ward bed in any
government facility.
• Highest budget ever for DOH. Under Secretary Ona's term, the DOH
received the biggest budget increase, which is P42 billion for 2012 and
P53 billion for 2013. This figure is more than twice the DOH budget of
P23 billion in 2009. Secretary Ona once said, "As a surgeon, I know how
much our people need hospital care and medicines. I will lobby for the
DOH to get its needed budget."
• Improvement of health facilities. The DOH is in the process of
enhancing and upgrading health facilities to ensure that people have
access to quality health care. The national government has allotted
P13.5 billion for 2013 for the improvement of the national and local
government hospitals, health centers, and barangay health stations.
Secretary Ona has also started the National Hospital Reform Program,
wherein he has identified 25 to 30 DOH-retained hospitals for
modernization through private-public partnership (PPP). Seven of these
hospitals will be upgraded to give specialized care in heart surgery,
oncology, and organ transplantation, so that patients who will need
these services need not come to Manila or Cebu anymore.
• Attainment of the Millennium Development Goals. The DOH has employed
more nurses and health workers through the "RN Heals" volunteer nurses
program. Batch 1 deployed 10,000 nurses, batch 2 had 11,500 nurses, and
the latest batch 3 for 2012 will recruit 10,000 nurses and 3,000
midwives. Moreover, the DOH has deployed thousands of community health
teams. These teams of health workers travel house to house to teach
people about vaccination, cleanliness, maternal and child care, and
common diseases.
Seeing how the poor cannot buy their medicines, the DOH has also started
a new program of giving free maintenance medicines to poor patients.
Called the ComPack (complete treatment packs), this program has a budget
of P500 million a year.
To reduce the deaths of our children from severe diarrhea and pneumonia,
the DOH has included in the national immunization program the rotavirus
and pneumococcal vaccination initially for 700,000 infants belonging to
the 5.2 million NHTS families, the first country in Southeast Asia to do so.
Because of the department's efforts, the country is now closer to
achieving Universal Health Care by 2016. The DOH has laid the groundwork
for making this dream a reality.
The health department's vision is to achieve the following results:
•All Filipinos especially poor families will be enrolled in PhilHealth.
•PhilHealth support value for the patient's medical expenses will
increase from 34% in 2009 to 60% by 2016.
•Quality care will be provided in public facilities and public hospitals.
•The DOH will reach out to the grassroots. Poor families will be
informed and guided by community health teams for their health needs.
•Every family will have access to essential, quality, and affordable
health services, both in the prevention and treatment of diseases.
In the words of Secretary Ona, "The government cannot achieve this dream
alone. Universal Health Care will not be realized without the people's
commitment and partnership. We ask you, the private sector, the media,
and the people, to continue working with us with the same enthusiasm and
drive to help uplift the lives of the poorest members of our society."
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Monday, October 22, 2012
EU turns over P312M livelihood fund for families displaced by Mindanao conflict
This summary is not available. Please
click here to view the post.
Friday, October 19, 2012
SIMM project provides clear reception to mobile banking
SIMM project provides clear reception to mobile banking
Published on 18 October 2012 Hits: 186
Mobile banking—regarded as the great equalizer for rural banks as it
helps bridge the banking divide, especially for the traditionally
unbanked segment of the market in the countryside—increases its signal
anew by a few bars with another initiative from the United States Agency
for International Development (Usaid).
Fresh from capping off its 15-year partnership with the Rural Bankers
Association of the Philippines via the Microenterprise Access to Banking
Services (MABS) program, Usaid this time has introduced a project titled
Scaling Innovations in Mobile Money or SIMM. It is a two-year
undertaking that aims to train more than 10,000 people through financial
education and literacy on the uses of mobile money and mobile money
services for improved household financial management; provide 10,000
people with new savings accounts via mobile banking; establish an
additional 2,500 cash-in/cash-out merchant partners by focusing on rural
areas; increase payroll implementation and adoption to 100 small,
medium, and large businesses and one Philippine government agency or
local government unit; increase the volume of mobile money transactions
by over 200 percent; and sponsor conferences and venues for networking
support and produce research papers and assessments for knowledge sharing.
Usaid has partnered with BPI Globe BanKO, Smart Communications and Globe
Telecom for the SIMM project, which are incidentally the three mobile
money service providers in the country.
According to Maura O'Neill, Usaid chief innovation officer and senior
counselor to the administrator, SIMM builds upon Usaid's and the
Philippines' current interventions in microfinance and mobile banking to
expand financial services even further through new technologies, as it
will enable Filipinos even from the remotest parts of the country to
send money home, save money, pay for unexpected medical costs, school
fees, or invest in their business using their mobile phones.
The SIMM Project aspires to integrate developing communities into the
formal financial sector, thereby providing low income Filipinos with the
means to build assets and participate more broadly in the formal economy.
On the part of rural banks, this project further complements the
industry's existing program to reach out and extend its services to its
target market through the use of mobile phones. Rural banks are no
strangers to the prowess of mobile telephony in delivering banking
services to the countryside by effectively transcending physical and
geographical boundaries. Rural banks are well positioned to be the
mobile money enabler in the countryside.
Taking a page from an earlier presentation of John Owens, previously the
chief of party of MABS, mobile banking transactions will continue to
expand and be easier to develop by rural banks as new applications for
mobile phones are continuously introduced. Services like text-based
banking, Point of Sale systems, cash cards, ATM cards, and prepaid debit
cards are technologies that are now within easy reach of rural banks.
While bigger banks have been investing in the expansion of their ATMs,
most rural banks prefer to collaborate with third party ATM providers
like ENCASH and offer a GCash- or Smart Money-enabled ATM card services
for a better round-the-clock access on the part of clients and customers.
Recent regulations and circulars issued by the Bangko Sentral ng
Pilipinas (BSP) have also enabled a regulatory environment that promotes
greater financial inclusion, or the delivery of financial services to
low-income groups at affordable costs. Among these important policies
include the easing of bank branching requirements and the expansion of
the role of micro-banking offices.
Under BSP Circular No. 694, the range of microfinance services that
banks can offer are expanded, now including the disbursement and
collection of microfinance loans, acceptance of micro-deposits, payout
remittances, the provision for cash-in and cash-out mobile money
services, sale and support of microinsurance services, bill payments,
and government services, among others. The BSP has also broadened the
classification of microfinance clients who could be offered
microinsurance services to now include customers from low-income households.
In 2011, rural banks processed more than P4.9 billion in mobile
money-enabled banking transactions. For the first four months of 2012,
there is already a 58-percent increase in the volume of transactions
anchored on mobile banking.
Over 73 rural banks with 1,168 branches and other banking offices have
now been accredited to offer mobile money-enabled banking services in
the country. These banks have processed more than P16 billion in mobile
banking transactions since 2006.
Although these numbers are already quite impressive, there is still a
lot of work that needs to be done. The BSP said that as of last year,
only 26 percent of Filipinos have access to formal financial services.
On the other hand, out of the 1,635 municipalities in the country, 37
percent or 610 municipalities still do not have access to banks.
Rural banks can help bridge this gap through the use of mobile banking.
Meanwhile, the SIMM Project will serve as another stimulus for the
continued development and promotion of mobile banking in the country.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on 18 October 2012 Hits: 186
Mobile banking—regarded as the great equalizer for rural banks as it
helps bridge the banking divide, especially for the traditionally
unbanked segment of the market in the countryside—increases its signal
anew by a few bars with another initiative from the United States Agency
for International Development (Usaid).
Fresh from capping off its 15-year partnership with the Rural Bankers
Association of the Philippines via the Microenterprise Access to Banking
Services (MABS) program, Usaid this time has introduced a project titled
Scaling Innovations in Mobile Money or SIMM. It is a two-year
undertaking that aims to train more than 10,000 people through financial
education and literacy on the uses of mobile money and mobile money
services for improved household financial management; provide 10,000
people with new savings accounts via mobile banking; establish an
additional 2,500 cash-in/cash-out merchant partners by focusing on rural
areas; increase payroll implementation and adoption to 100 small,
medium, and large businesses and one Philippine government agency or
local government unit; increase the volume of mobile money transactions
by over 200 percent; and sponsor conferences and venues for networking
support and produce research papers and assessments for knowledge sharing.
Usaid has partnered with BPI Globe BanKO, Smart Communications and Globe
Telecom for the SIMM project, which are incidentally the three mobile
money service providers in the country.
According to Maura O'Neill, Usaid chief innovation officer and senior
counselor to the administrator, SIMM builds upon Usaid's and the
Philippines' current interventions in microfinance and mobile banking to
expand financial services even further through new technologies, as it
will enable Filipinos even from the remotest parts of the country to
send money home, save money, pay for unexpected medical costs, school
fees, or invest in their business using their mobile phones.
The SIMM Project aspires to integrate developing communities into the
formal financial sector, thereby providing low income Filipinos with the
means to build assets and participate more broadly in the formal economy.
On the part of rural banks, this project further complements the
industry's existing program to reach out and extend its services to its
target market through the use of mobile phones. Rural banks are no
strangers to the prowess of mobile telephony in delivering banking
services to the countryside by effectively transcending physical and
geographical boundaries. Rural banks are well positioned to be the
mobile money enabler in the countryside.
Taking a page from an earlier presentation of John Owens, previously the
chief of party of MABS, mobile banking transactions will continue to
expand and be easier to develop by rural banks as new applications for
mobile phones are continuously introduced. Services like text-based
banking, Point of Sale systems, cash cards, ATM cards, and prepaid debit
cards are technologies that are now within easy reach of rural banks.
While bigger banks have been investing in the expansion of their ATMs,
most rural banks prefer to collaborate with third party ATM providers
like ENCASH and offer a GCash- or Smart Money-enabled ATM card services
for a better round-the-clock access on the part of clients and customers.
Recent regulations and circulars issued by the Bangko Sentral ng
Pilipinas (BSP) have also enabled a regulatory environment that promotes
greater financial inclusion, or the delivery of financial services to
low-income groups at affordable costs. Among these important policies
include the easing of bank branching requirements and the expansion of
the role of micro-banking offices.
Under BSP Circular No. 694, the range of microfinance services that
banks can offer are expanded, now including the disbursement and
collection of microfinance loans, acceptance of micro-deposits, payout
remittances, the provision for cash-in and cash-out mobile money
services, sale and support of microinsurance services, bill payments,
and government services, among others. The BSP has also broadened the
classification of microfinance clients who could be offered
microinsurance services to now include customers from low-income households.
In 2011, rural banks processed more than P4.9 billion in mobile
money-enabled banking transactions. For the first four months of 2012,
there is already a 58-percent increase in the volume of transactions
anchored on mobile banking.
Over 73 rural banks with 1,168 branches and other banking offices have
now been accredited to offer mobile money-enabled banking services in
the country. These banks have processed more than P16 billion in mobile
banking transactions since 2006.
Although these numbers are already quite impressive, there is still a
lot of work that needs to be done. The BSP said that as of last year,
only 26 percent of Filipinos have access to formal financial services.
On the other hand, out of the 1,635 municipalities in the country, 37
percent or 610 municipalities still do not have access to banks.
Rural banks can help bridge this gap through the use of mobile banking.
Meanwhile, the SIMM Project will serve as another stimulus for the
continued development and promotion of mobile banking in the country.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
LandBank releases P4.7B in additional loans
LandBank releases P4.7B in additional loans
Published on 19 October 2012 Hits: 106 Written by JAMES KONSTANTIN
GALVEZ REPORTER
STate-owned Land Bank of the Philippines (LandBank) has released an
additional P4.7 billion worth of loans in the first eight months of this
year as part of its effort to boost the government's thrust toward food
sufficiency and increase agricultural productivity.
LandBank President Gilda Pico said that since the start of the Food
Supply Chain Program (FSCP) in 2010, the total loan releases to
LandBank's priority sectors reached P14.5 billion, benefiting some 152
anchor firms and 410 cooperatives, farmers' organizations and producers
in Northern and Central Luzon.
The total amount includes P4.6 billion in loans to beneficiary projects,
firms, cooperatives and producers in Northern and Central Luzon; P3.5
billion in Visayas; P3.4 billion in Mindanao; and P3.1 billion in
Southern Luzon.
"We are pleased that the FSCP is further gaining momentum as more
farmers and fisher folk cooperatives and organizations, as well as SMEs
[small and medium enterprises] and NGOs [non-government organizations]
stand to benefit from the program," Pico said.
"We are committed to seeing this program to fruition as we endeavor to
provide better opportunities and improve the lives of our priority
sectors," she added.
The FSCP provides financial assistance to key players in the food system
such as agricultural producers, service providers, processors and
various market players; farms market linkages between agricultural
producers and processors; and offers capacity building support to
strengthen farmers' organizations and enable them to meet product
requirements of anchor firms.
Anchors firms are, in turn, expected to buy the produce of the
participating cooperatives and organizations, and provide technical
assistance to improve productivity and product quality.
Among the projects now being implemented are hog fattening; oil palm
production and processing; fruits and vegetable production and
processing; rice and corn production, processing and trading; banana
production and processing; fish production and processing; onion
production, cold storage and marketing; and sugarcane production and
milling.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on 19 October 2012 Hits: 106 Written by JAMES KONSTANTIN
GALVEZ REPORTER
STate-owned Land Bank of the Philippines (LandBank) has released an
additional P4.7 billion worth of loans in the first eight months of this
year as part of its effort to boost the government's thrust toward food
sufficiency and increase agricultural productivity.
LandBank President Gilda Pico said that since the start of the Food
Supply Chain Program (FSCP) in 2010, the total loan releases to
LandBank's priority sectors reached P14.5 billion, benefiting some 152
anchor firms and 410 cooperatives, farmers' organizations and producers
in Northern and Central Luzon.
The total amount includes P4.6 billion in loans to beneficiary projects,
firms, cooperatives and producers in Northern and Central Luzon; P3.5
billion in Visayas; P3.4 billion in Mindanao; and P3.1 billion in
Southern Luzon.
"We are pleased that the FSCP is further gaining momentum as more
farmers and fisher folk cooperatives and organizations, as well as SMEs
[small and medium enterprises] and NGOs [non-government organizations]
stand to benefit from the program," Pico said.
"We are committed to seeing this program to fruition as we endeavor to
provide better opportunities and improve the lives of our priority
sectors," she added.
The FSCP provides financial assistance to key players in the food system
such as agricultural producers, service providers, processors and
various market players; farms market linkages between agricultural
producers and processors; and offers capacity building support to
strengthen farmers' organizations and enable them to meet product
requirements of anchor firms.
Anchors firms are, in turn, expected to buy the produce of the
participating cooperatives and organizations, and provide technical
assistance to improve productivity and product quality.
Among the projects now being implemented are hog fattening; oil palm
production and processing; fruits and vegetable production and
processing; rice and corn production, processing and trading; banana
production and processing; fish production and processing; onion
production, cold storage and marketing; and sugarcane production and
milling.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
ADB claims microfinance success in PH
ADB claims microfinance success in PH
Published on 18 October 2012 Hits: 521 Written by MAYVELIN U. CARABALLO
REPORTER
BUT BANK SAYS ONLY 3 MILLION FILIPINOS HAVE ACCESS TO LENDING FOR THE POOR
A study from the Asian Development Bank (ADB) Independent Evaluation
Department that was released on Wednesday said that the lender's
microfinance support had been effective in the Philippines as of 2010,
however, many Filipinos still do not have an access to microfinance loans.
According to the study entitled "Microfinance Development Strategy 2000:
Sector Performance and Client Welfare," in the Philippines, support for
microfinance formed part of ADB's country partnership strategy,
particularly in the government's efforts to achieve the Millennium
Development Goals.
However, it noted that of the current Philippine population of 94.1
million, only 3 million poor Filipinos had access to microfinance loans.
The ADB study explained that this few number of Filipinos reflects a
3.2-percent penetration rate of microfinance.
"Penetration rates compare active borrowers against a potential client
base of the population living below the international poverty line of
$1.25 per day," it added.
However, while only few Filipinos have access to microfinance loans, the
study had observed that ADB's microfinance development strategy had been
effective in the country with notable improvements in the policy, legal,
regulatory, and supervisory frameworks.
Besides Philippines, the ADB study added that growth in outreach and
sustainability provides evidence that microfinance institutions capacity
was also strengthened in Cambodia and Tajikistan.
"In these three countries, the interventions addressed key constraints
to sector growth with appropriate choices of financing instruments to
ease the expansion of microfinance services," it added.
In terms of promotion of pro-poor innovations and financial technology,
the study revealed that ADB's support for this area was very limited and
mainly through technical assistance.
"Support to Cambodia, Philippines, and Sri Lanka laid the groundwork for
the expansion of savings and microinsurance products and services,
through the development of appropriate regulatory frameworks and support
for product development," it added.
Meanwhile, in the Asia and the Pacific region, the study said that
microfinance needs to reach more of the poor, but in a financially
sustainable way.
It also emphasized the twin goals of microfinance—reaching the poor and
being financially sustainable, adding that microfinance has become
increasingly commercialized in the region. The study stressed the role
of government and agencies such as ADB in addressing the financial needs
of the poor, while at the same time ensuring the institutional
sustainability of microfinance providers.
"Despite the increasing popularity of microfinance in recent years,
expanding the access of poor households to institutional financial
services remains a great challenge to governments and development
agencies," according to the Director General of Independent Evaluation
at ADB, Vinod Thomas.
Low penetration in Asia
It also found that the penetration of microfinance among the poor in
Asia and the Pacific remains low.
Moreover, the study added that as of the end of 2010, some 20 percent of
the population living below the poverty level of $1.25 a day had direct
access to microfinance services in 21 developing countries receiving ADB
microfinance support.
"This level was below ADB's goals," it said.
The study added that microfinance is seen in the region as an important
means to helping low-income households take advantage of economic
opportunities and improve living standards. However, the degree to which
it actually reaches the poor and improves their welfare is under public
scrutiny.
It also noted that for microfinance to have a greater impact on reducing
poverty in the region, it needs to better target the poor and focus more
on educating them in using basic financial services, as well as more
effectively link microfinance services to complementary pro-poor
interventions.
Furthermore, the study also noted that about 2.7 billion people
worldwide, or 70 percent of the adult population in the world's
developing countries, have no access to formal financial services, such
as savings or checking accounts, representing a key and still largely
untapped market segment for financial inclusion.
"Improvements in the policy environment and integrating microfinance in
the formal financial sector do not automatically improve outreach to the
poor. Deliberate and innovative approaches are needed to benefit more
people currently not reached by traditional financial institutions,"
Thomas said.
Government-to-person payments also have the potential to become an
effective means for financial inclusion, primarily through social
transfers and wage and pension payments, which have been implemented in
Bangladesh, Cambodia, India, Indonesia, Pakistan and the Philippines, it
explained.
In May 2000, the ADB approved its MDS to provide a strategic framework
and broad guidance for its support in the microfinance sector.
Since then, the ADB said that it has been one of the largest providers
of microfinance support in the region and it had approved nearly $2.8
billion through 88 loans, grants, technical assistance operations, and
private sector investments.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on 18 October 2012 Hits: 521 Written by MAYVELIN U. CARABALLO
REPORTER
BUT BANK SAYS ONLY 3 MILLION FILIPINOS HAVE ACCESS TO LENDING FOR THE POOR
A study from the Asian Development Bank (ADB) Independent Evaluation
Department that was released on Wednesday said that the lender's
microfinance support had been effective in the Philippines as of 2010,
however, many Filipinos still do not have an access to microfinance loans.
According to the study entitled "Microfinance Development Strategy 2000:
Sector Performance and Client Welfare," in the Philippines, support for
microfinance formed part of ADB's country partnership strategy,
particularly in the government's efforts to achieve the Millennium
Development Goals.
However, it noted that of the current Philippine population of 94.1
million, only 3 million poor Filipinos had access to microfinance loans.
The ADB study explained that this few number of Filipinos reflects a
3.2-percent penetration rate of microfinance.
"Penetration rates compare active borrowers against a potential client
base of the population living below the international poverty line of
$1.25 per day," it added.
However, while only few Filipinos have access to microfinance loans, the
study had observed that ADB's microfinance development strategy had been
effective in the country with notable improvements in the policy, legal,
regulatory, and supervisory frameworks.
Besides Philippines, the ADB study added that growth in outreach and
sustainability provides evidence that microfinance institutions capacity
was also strengthened in Cambodia and Tajikistan.
"In these three countries, the interventions addressed key constraints
to sector growth with appropriate choices of financing instruments to
ease the expansion of microfinance services," it added.
In terms of promotion of pro-poor innovations and financial technology,
the study revealed that ADB's support for this area was very limited and
mainly through technical assistance.
"Support to Cambodia, Philippines, and Sri Lanka laid the groundwork for
the expansion of savings and microinsurance products and services,
through the development of appropriate regulatory frameworks and support
for product development," it added.
Meanwhile, in the Asia and the Pacific region, the study said that
microfinance needs to reach more of the poor, but in a financially
sustainable way.
It also emphasized the twin goals of microfinance—reaching the poor and
being financially sustainable, adding that microfinance has become
increasingly commercialized in the region. The study stressed the role
of government and agencies such as ADB in addressing the financial needs
of the poor, while at the same time ensuring the institutional
sustainability of microfinance providers.
"Despite the increasing popularity of microfinance in recent years,
expanding the access of poor households to institutional financial
services remains a great challenge to governments and development
agencies," according to the Director General of Independent Evaluation
at ADB, Vinod Thomas.
Low penetration in Asia
It also found that the penetration of microfinance among the poor in
Asia and the Pacific remains low.
Moreover, the study added that as of the end of 2010, some 20 percent of
the population living below the poverty level of $1.25 a day had direct
access to microfinance services in 21 developing countries receiving ADB
microfinance support.
"This level was below ADB's goals," it said.
The study added that microfinance is seen in the region as an important
means to helping low-income households take advantage of economic
opportunities and improve living standards. However, the degree to which
it actually reaches the poor and improves their welfare is under public
scrutiny.
It also noted that for microfinance to have a greater impact on reducing
poverty in the region, it needs to better target the poor and focus more
on educating them in using basic financial services, as well as more
effectively link microfinance services to complementary pro-poor
interventions.
Furthermore, the study also noted that about 2.7 billion people
worldwide, or 70 percent of the adult population in the world's
developing countries, have no access to formal financial services, such
as savings or checking accounts, representing a key and still largely
untapped market segment for financial inclusion.
"Improvements in the policy environment and integrating microfinance in
the formal financial sector do not automatically improve outreach to the
poor. Deliberate and innovative approaches are needed to benefit more
people currently not reached by traditional financial institutions,"
Thomas said.
Government-to-person payments also have the potential to become an
effective means for financial inclusion, primarily through social
transfers and wage and pension payments, which have been implemented in
Bangladesh, Cambodia, India, Indonesia, Pakistan and the Philippines, it
explained.
In May 2000, the ADB approved its MDS to provide a strategic framework
and broad guidance for its support in the microfinance sector.
Since then, the ADB said that it has been one of the largest providers
of microfinance support in the region and it had approved nearly $2.8
billion through 88 loans, grants, technical assistance operations, and
private sector investments.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Financial literacy and information asymmetry
BY BRIAN JERIC MORILLO, IDEA
Financial literacy and information asymmetry
THE GOOD NEWS is that Filipinos are now more adept at managing their
finances. The bad news is that the Philippines' financial quotient still
lags behind its regional peers. These were some of the findings of the
most recent Financial Quotient (Fin-Q) Survey by international financial
services conglomerate, Citi.
In previous years, financial literacy among Filipinos has always fallen
below the 50-point mark out of a perfect score of 100. The Philippines
recorded its lowest grade in 2008 when it got an overall score of 46.6
points. This year, however, showed a notable improvement as the country
crossed the halfway mark of the Fin-Q Survey for the very first time at
52.6 points. Moreover, the survey indicated that six out of ten
Filipinos feel that they have a "good" or "very good" grasp of money
management. Similarly, four out of five say that they are "optimistic"
about their financial future.
Though the score is still behind the regional score of 54.5 points, the
numbers suggest that Filipinos are now more concerned about planning
their personal finances while at the same time trying to improve their
financial security. Filipinos are now saving more, managing credit,
seeking investments and spending on insurance. This is, however, just
the first step in improving the financial security of Filipinos.
While the management of finances is geared towards achieving financial
security, individuals who have not been properly educated just might
suffer losing their lifetime savings. This is especially true when
dealing with investment vehicles. Saving is one part of the process and
where to put one's money is another question. Of the two aspects, the
latter will pose potential problems. An individual has to know the
different levels of risk associated with diverse potential investment
vehicles on which he or she will put money on.
What is more problematic, however, is the underlying issue of what is
called the "principal-agent problem." This situation can lead to "moral
hazard" situations, defined by R. Pindyck and D. Rubifeld as a problem
that occurs when the unobserved actions of an agent affects the
probability or magnitude of payment to the principal. These unmonitored
actions by the agent (the organization that receives the investment) can
lead to disastrous results.
An example is when top management exercises a myopic or short-term
perspective over the company's financial performance rather than
focusing on the long-term financial health of the company. They tend to
forego plans that will have long-term beneficial effects because their
compensation and bonuses are very much tied to short-term gains. This is
exactly what happened during the housing bubble in the United States.
Because compensation and bonus schemes do not purposely underscore the
goal of long-term financial success, top management of investment banks
like Goldman Sachs sometimes secretly bet against the very products they
sold to their investors. In addition, banks made risky investments out
of their depositors' money. These precarious behaviors are the cause of
the degradation of equity wealth not only among Americans, but citizens
of other countries as well.
These events are consequences of "information asymmetry" in the market.
As everyone knows, information is costly to acquire, hence, some people
know more than others. Moreover, having the necessary information can
mean power on the part of the holder. Thus, not all types of information
will be readily available for the consumer's consumption. With very
little information, Filipinos should be creative in finding means to
avoid the adverse effects of information asymmetry.
In this regard, the government can step in not only in educating people
on ways to assess possible investments, (and, hence, not be ensnared by
unworthy companies) but also in minimizing adverse behaviors of company
officers.
Recently, the Securities and Exchange Commission announced an overhaul
of disclosure rules with respect to executive and director compensation
schemes. They are considering requiring companies to disclose more
detailed information about compensation schemes available to company top
officials. This is a laudable move on the part of the government to
protect the interest of investors. These revised rules will definitely
improve transparency with respect to compensation, hence, giving
potential investors the opportunity to assess the probability of company
officials engaging in risky activities.
Indeed, it is good news that more and more Filipinos are now minding
their finances. With many Filipinos just starting out, two extremes
highlight what could possibly happen. They might end up parking their
money in riskless investments and, thus, miss out on value. Or, they
might find themselves trapped in very risky investments and, thus, lose
their money. The experience of advanced economies should serve as a
lesson. If the more sophisticated citizens of developed countries made
huge mistakes, Filipinos should all the more be cautious.
The Institute for Development and Econometric Analysis (IDEA), Inc. is a
non-stock, non-partisan institution dedicated to high-quality economic
research, instruction, and communication. The views and opinions
expressed herein are those of the author and do not necessarily reflect
those of the organization. For questions and inquiries, please contact
Remrick Patagan via ideainc.mail@gmail.com or telefax no. 920-6872.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Financial literacy and information asymmetry
THE GOOD NEWS is that Filipinos are now more adept at managing their
finances. The bad news is that the Philippines' financial quotient still
lags behind its regional peers. These were some of the findings of the
most recent Financial Quotient (Fin-Q) Survey by international financial
services conglomerate, Citi.
In previous years, financial literacy among Filipinos has always fallen
below the 50-point mark out of a perfect score of 100. The Philippines
recorded its lowest grade in 2008 when it got an overall score of 46.6
points. This year, however, showed a notable improvement as the country
crossed the halfway mark of the Fin-Q Survey for the very first time at
52.6 points. Moreover, the survey indicated that six out of ten
Filipinos feel that they have a "good" or "very good" grasp of money
management. Similarly, four out of five say that they are "optimistic"
about their financial future.
Though the score is still behind the regional score of 54.5 points, the
numbers suggest that Filipinos are now more concerned about planning
their personal finances while at the same time trying to improve their
financial security. Filipinos are now saving more, managing credit,
seeking investments and spending on insurance. This is, however, just
the first step in improving the financial security of Filipinos.
While the management of finances is geared towards achieving financial
security, individuals who have not been properly educated just might
suffer losing their lifetime savings. This is especially true when
dealing with investment vehicles. Saving is one part of the process and
where to put one's money is another question. Of the two aspects, the
latter will pose potential problems. An individual has to know the
different levels of risk associated with diverse potential investment
vehicles on which he or she will put money on.
What is more problematic, however, is the underlying issue of what is
called the "principal-agent problem." This situation can lead to "moral
hazard" situations, defined by R. Pindyck and D. Rubifeld as a problem
that occurs when the unobserved actions of an agent affects the
probability or magnitude of payment to the principal. These unmonitored
actions by the agent (the organization that receives the investment) can
lead to disastrous results.
An example is when top management exercises a myopic or short-term
perspective over the company's financial performance rather than
focusing on the long-term financial health of the company. They tend to
forego plans that will have long-term beneficial effects because their
compensation and bonuses are very much tied to short-term gains. This is
exactly what happened during the housing bubble in the United States.
Because compensation and bonus schemes do not purposely underscore the
goal of long-term financial success, top management of investment banks
like Goldman Sachs sometimes secretly bet against the very products they
sold to their investors. In addition, banks made risky investments out
of their depositors' money. These precarious behaviors are the cause of
the degradation of equity wealth not only among Americans, but citizens
of other countries as well.
These events are consequences of "information asymmetry" in the market.
As everyone knows, information is costly to acquire, hence, some people
know more than others. Moreover, having the necessary information can
mean power on the part of the holder. Thus, not all types of information
will be readily available for the consumer's consumption. With very
little information, Filipinos should be creative in finding means to
avoid the adverse effects of information asymmetry.
In this regard, the government can step in not only in educating people
on ways to assess possible investments, (and, hence, not be ensnared by
unworthy companies) but also in minimizing adverse behaviors of company
officers.
Recently, the Securities and Exchange Commission announced an overhaul
of disclosure rules with respect to executive and director compensation
schemes. They are considering requiring companies to disclose more
detailed information about compensation schemes available to company top
officials. This is a laudable move on the part of the government to
protect the interest of investors. These revised rules will definitely
improve transparency with respect to compensation, hence, giving
potential investors the opportunity to assess the probability of company
officials engaging in risky activities.
Indeed, it is good news that more and more Filipinos are now minding
their finances. With many Filipinos just starting out, two extremes
highlight what could possibly happen. They might end up parking their
money in riskless investments and, thus, miss out on value. Or, they
might find themselves trapped in very risky investments and, thus, lose
their money. The experience of advanced economies should serve as a
lesson. If the more sophisticated citizens of developed countries made
huge mistakes, Filipinos should all the more be cautious.
The Institute for Development and Econometric Analysis (IDEA), Inc. is a
non-stock, non-partisan institution dedicated to high-quality economic
research, instruction, and communication. The views and opinions
expressed herein are those of the author and do not necessarily reflect
those of the organization. For questions and inquiries, please contact
Remrick Patagan via ideainc.mail@gmail.com or telefax no. 920-6872.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Thursday, October 18, 2012
Foreign equity bill to make rural banks more competitive
Foreign equity bill to make rural banks more competitive
Published on Monday, 08 October 2012 00:00
Sen. Sergio Osmeña III is pushing for the opening of the rural banking
industry to foreign ownership of up to 60 percent of the voting stock of
an existing rural bank to make the industry healthier and at par with
its bigger counterparts.
He said Senate Bill 3282, or "An Act Allowing Infusion of Foreign Equity
in the Capital of Rural Banks, Amending Republic Act No. 7353, Otherwise
Known as The Rural Banks Act of 1992, As Amended And For Other
Purposes," which he sponsors, aims to open up ownership of rural banks
to foreign equity, thus revitalizing the rural banking system and
improving access of banking services in rural areas.
"This legislation will stimulate more lively activity among rural banks
by creating an environment that is beneficial to foreign investors,
local banking patrons, and national economy," the lawmaker said, during
a recent sponsorship speech at the Senate.
Senate Bill 3282 is in substitution of Senate Bill No. 1907 introduced
by Sen. Miriam Defensor Santiago and Senate Bill No. 3089 introduced by
Sen. Edgardo J. Angara, taking into consideration House Bill No. 5360
introduced by Representatives Sergio Apostol, Rufus Rodriguez, Maximo
Rodriguez, Jr., Pedro Romualdo, Roilo Golez, Julieta Cortuna, Isidro
Lico, Cresente Paez, Philip Pichay, Arthur Defensor, Jr., Jeci Lapus and
Agapito Guanlao.
It seeks to amend Section 4 of R.A. 7353, which restricts ownership of
rural banks to Filipino citizens only, by allowing foreign individuals
and entities to acquire equity of up to 60 percent in rural banks.
"Rural banks need to look beyond their limited resources and take
advantage of funds available elsewhere," Sen. Osmeña pointed out. "The
opportunity to forge international equity partnerships will put rural
banks on a level playing field with its thrift and commercial bank
counterparts that are able to take in foreign partnerships."
He explained that a healthier and more competitive rural banking sector,
with the benefit of international partnerships, will mean more resources
to reach out to the unbanked, underbanked, and the less privileged
sector of society.
Sen. Osmeña, chairman of the Senate committee on Banks and Financial
Intermediaries, added that foreign equity in rural banks would be a
major stimulus for microfinance, micro-enterprise, and agriculture
sectors. Subsequently, all would serve as important catalysts in
countryside development.
"This legislation will open a new source of equity infusion,
particularly for the smallest lenders that cannot expand and who cannot
afford sophisticated forms of financial services," he said.
Rural banks have been operating in the Philippines for 60 years and with
the amendment of the law, will boost its ability to help spur
countryside development.
The bill is still pending second reading.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on Monday, 08 October 2012 00:00
Sen. Sergio Osmeña III is pushing for the opening of the rural banking
industry to foreign ownership of up to 60 percent of the voting stock of
an existing rural bank to make the industry healthier and at par with
its bigger counterparts.
He said Senate Bill 3282, or "An Act Allowing Infusion of Foreign Equity
in the Capital of Rural Banks, Amending Republic Act No. 7353, Otherwise
Known as The Rural Banks Act of 1992, As Amended And For Other
Purposes," which he sponsors, aims to open up ownership of rural banks
to foreign equity, thus revitalizing the rural banking system and
improving access of banking services in rural areas.
"This legislation will stimulate more lively activity among rural banks
by creating an environment that is beneficial to foreign investors,
local banking patrons, and national economy," the lawmaker said, during
a recent sponsorship speech at the Senate.
Senate Bill 3282 is in substitution of Senate Bill No. 1907 introduced
by Sen. Miriam Defensor Santiago and Senate Bill No. 3089 introduced by
Sen. Edgardo J. Angara, taking into consideration House Bill No. 5360
introduced by Representatives Sergio Apostol, Rufus Rodriguez, Maximo
Rodriguez, Jr., Pedro Romualdo, Roilo Golez, Julieta Cortuna, Isidro
Lico, Cresente Paez, Philip Pichay, Arthur Defensor, Jr., Jeci Lapus and
Agapito Guanlao.
It seeks to amend Section 4 of R.A. 7353, which restricts ownership of
rural banks to Filipino citizens only, by allowing foreign individuals
and entities to acquire equity of up to 60 percent in rural banks.
"Rural banks need to look beyond their limited resources and take
advantage of funds available elsewhere," Sen. Osmeña pointed out. "The
opportunity to forge international equity partnerships will put rural
banks on a level playing field with its thrift and commercial bank
counterparts that are able to take in foreign partnerships."
He explained that a healthier and more competitive rural banking sector,
with the benefit of international partnerships, will mean more resources
to reach out to the unbanked, underbanked, and the less privileged
sector of society.
Sen. Osmeña, chairman of the Senate committee on Banks and Financial
Intermediaries, added that foreign equity in rural banks would be a
major stimulus for microfinance, micro-enterprise, and agriculture
sectors. Subsequently, all would serve as important catalysts in
countryside development.
"This legislation will open a new source of equity infusion,
particularly for the smallest lenders that cannot expand and who cannot
afford sophisticated forms of financial services," he said.
Rural banks have been operating in the Philippines for 60 years and with
the amendment of the law, will boost its ability to help spur
countryside development.
The bill is still pending second reading.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
ING Bank says strong peso trend could last for 2 years
ING Bank says strong peso trend could last for 2 years
Published on Monday, 08 October 2012 00:00
Local exporters, overseas Filipino workers (OFWs) and others who earn in
foreign currencies may have to get used to seeing a strong peso, at
least in the next two years, as the Philippines prepares to join the
league of nations with investment-grade credit ratings.
Johnson Sia, Head of Financial Markets at the Manila branch of Dutch
financial giant ING Bank, said recent events have led to a more
favorable outlook on the Philippine economy and this could make the
local currency advance further against the US dollar.
Sia cited events such as Standard & Poor's move lifting the Philippines'
debt rating to BB+ (one notch below investment grade) in July,
improvement in the balance of payments, a relatively benign inflation, a
record-high stock market, all-time-low government bond yields, and
stronger growth prospects.
"There's no question that the continuous appreciation of the peso is
based on solid economic fundamentals and there is a growing expectation
that this trend will continue. This means exporters need to face the
reality that having a strong peso is now inevitable and they must know
how to adapt to remain competitive in the global markets," he said.
The Philippine peso remains one of the best-performing Asian currencies
year-to-date.
Sia estimated that at least 80 percent of the currency's strength came
from fundamentals such as "having a good Philippine story" and the
continuous influx of foreign flows, including those from OFW remittances
and higher BPO receipts.
Some companies may also want to take advantage of the strong peso
outlook by leaving their foreign exchange exposures un-hedged or by
borrowing in US dollars although this is not something that Mr. Sia
encourages.
"Local currency borrowing rates are at their all-time low, and the cost
of hedging foreign exchange exposures are at their cheapest as well.
Companies should, therefore, just borrow in pesos. For those with
existing dollar obligations, lock-in the forex gains by hedging or
redenominating these into pesos," Mr. Sia advised.
"Forex exposures translate to swings in a company's income and that is
not something that equity analysts like. At the end of the day,
companies should focus on their core enterprise and areas of expertise,
and have to realize they are not in the business of forex speculation,"
he added.
He said market players see the much-anticipated investment grade rating
for Philippine credit happening "sometime by the middle of 2013." While
some felt this has already been factored in by investors, Mr. Sia said
this could still result in a further rally in the Philippine markets.
"There are a lot of funds out there that only invest in investment-grade
debt or are allowed to invest only on an index of investment-grade
instruments," he explained.
"Two years is a safe bet that the market trend we have now would
persist," said the ING Bank executive.
Established in 1990, ING Manila is the first foreign bank to be granted
a universal banking license. It provides multi-product financial
services to international and local clients. The awards it has received
from various international and local award-giving bodies are a testament
to ING Bank's strong franchise in local debt capital markets, loan
syndications and corporate finance.
ING is a global financial institution of Dutch origin offering banking,
investments, life insurance and retirement services to over 67 million
private, corporate and institutional clients in more than 40 countries.
With a diverse workforce of 94,500 people, ING is dedicated to setting
the standard in helping our clients manage their financial future.
In Asia, ING banking activities cover both commercial and retail
banking. Its Commercial Banking division conducts a wide range of
international financial services, offering corporate finance, financial
markets, debt capital markets, corporate and structured lending, and M&A
advisory services to meet clients' needs.
ING Commercial Banking Asia is present and and active in 14 major
economies, namely Australia, China, Hong Kong SAR, India, Indonesia,
Japan, Malaysia, Mongolia, the Philippines, Singapore, South Korea,
Taiwan, Thailand and Vietnam.
ING Retail Banking operations in Asia include a 13.64 percent stake in
Bank of Beijing, China; a 44 percent stake in ING Vysya Bank, India and
a 30 percent stake in TMB Bank, Thailand as well as a 100 percent stake
in ING Direct in Australia.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on Monday, 08 October 2012 00:00
Local exporters, overseas Filipino workers (OFWs) and others who earn in
foreign currencies may have to get used to seeing a strong peso, at
least in the next two years, as the Philippines prepares to join the
league of nations with investment-grade credit ratings.
Johnson Sia, Head of Financial Markets at the Manila branch of Dutch
financial giant ING Bank, said recent events have led to a more
favorable outlook on the Philippine economy and this could make the
local currency advance further against the US dollar.
Sia cited events such as Standard & Poor's move lifting the Philippines'
debt rating to BB+ (one notch below investment grade) in July,
improvement in the balance of payments, a relatively benign inflation, a
record-high stock market, all-time-low government bond yields, and
stronger growth prospects.
"There's no question that the continuous appreciation of the peso is
based on solid economic fundamentals and there is a growing expectation
that this trend will continue. This means exporters need to face the
reality that having a strong peso is now inevitable and they must know
how to adapt to remain competitive in the global markets," he said.
The Philippine peso remains one of the best-performing Asian currencies
year-to-date.
Sia estimated that at least 80 percent of the currency's strength came
from fundamentals such as "having a good Philippine story" and the
continuous influx of foreign flows, including those from OFW remittances
and higher BPO receipts.
Some companies may also want to take advantage of the strong peso
outlook by leaving their foreign exchange exposures un-hedged or by
borrowing in US dollars although this is not something that Mr. Sia
encourages.
"Local currency borrowing rates are at their all-time low, and the cost
of hedging foreign exchange exposures are at their cheapest as well.
Companies should, therefore, just borrow in pesos. For those with
existing dollar obligations, lock-in the forex gains by hedging or
redenominating these into pesos," Mr. Sia advised.
"Forex exposures translate to swings in a company's income and that is
not something that equity analysts like. At the end of the day,
companies should focus on their core enterprise and areas of expertise,
and have to realize they are not in the business of forex speculation,"
he added.
He said market players see the much-anticipated investment grade rating
for Philippine credit happening "sometime by the middle of 2013." While
some felt this has already been factored in by investors, Mr. Sia said
this could still result in a further rally in the Philippine markets.
"There are a lot of funds out there that only invest in investment-grade
debt or are allowed to invest only on an index of investment-grade
instruments," he explained.
"Two years is a safe bet that the market trend we have now would
persist," said the ING Bank executive.
Established in 1990, ING Manila is the first foreign bank to be granted
a universal banking license. It provides multi-product financial
services to international and local clients. The awards it has received
from various international and local award-giving bodies are a testament
to ING Bank's strong franchise in local debt capital markets, loan
syndications and corporate finance.
ING is a global financial institution of Dutch origin offering banking,
investments, life insurance and retirement services to over 67 million
private, corporate and institutional clients in more than 40 countries.
With a diverse workforce of 94,500 people, ING is dedicated to setting
the standard in helping our clients manage their financial future.
In Asia, ING banking activities cover both commercial and retail
banking. Its Commercial Banking division conducts a wide range of
international financial services, offering corporate finance, financial
markets, debt capital markets, corporate and structured lending, and M&A
advisory services to meet clients' needs.
ING Commercial Banking Asia is present and and active in 14 major
economies, namely Australia, China, Hong Kong SAR, India, Indonesia,
Japan, Malaysia, Mongolia, the Philippines, Singapore, South Korea,
Taiwan, Thailand and Vietnam.
ING Retail Banking operations in Asia include a 13.64 percent stake in
Bank of Beijing, China; a 44 percent stake in ING Vysya Bank, India and
a 30 percent stake in TMB Bank, Thailand as well as a 100 percent stake
in ING Direct in Australia.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Microfinance reach too small
Microfinance reach too small
Published on Thursday, 18 October 2012 00:00
Written by ANGELA CELIS
Microfinance services in the Philippines are only able to reach 3.2
percent of the country's population, a study from the Asian Development
Bank (ADB) showed.
In a report titled, Microfinance Development Strategy 2000: Sector
Performance and Client Welfare, the bank said that the total number of
borrowers in the Philippines as reported by microfinance institutions is
only three million, as of end-2010.
This figure is equivalent to 3.2 percent of the 94.1 million population
as of 2010.
The data from ADB also show that microfinance services reach only 14.1
percent of the poor population in the county, or those who are below the
World Bank's international poverty line of $1.25 a day. The poor
population in the Philippines as of end-2010 is 21.3 million.
"Despite the growth in outreach and microfinance providers in Cambodia
and Philippines, penetration rates were only 3.2 percent and 1.4
percent, respectively," the report said.
As of end-2011, the Philippines had 14,935 microfinance providers, which
the ADB said was due to the large number of cooperatives that have
microfinance operations.
The ADB said that Viet Nam leads the six countries studied in the
report, in terms of the scale and outreach of microfinance services, as
well as in terms of penetration rates.
The report said that this was achieved by Viet Nam with heavy subsidies
to the state-owned Viet Nam Bank for Social Policy.
"Cambodia, Pakistan, and the Philippines, despite their well-established
policy and regulatory frameworks, were far from the scale and outreach
of Viet Nam," the report said.
"However, the microfinance industry in these countries is commercially
oriented, offering more diverse products and services to clients with
more licensed or formal institutions operating in the market," the study
added.
The ADB said that the six countries studied represent 33 percent or $916
million of the agency's microfinance portfolio in 2000 to 2010.
Pakistan received the largest amount of assistance with $488.9 million.
The Philippines had the second largest share of microfinance support
from the ADB among the six countries with 19 percent or $173 million, of
which $150 million was a sector development program loan approved in 2005.
"These two countries received the major share of the assistance among
the six countries due to their relatively large program loans, which
covered comprehensive policy reforms and capacity development for the
sector," the ADB said.
The report said that the ADB support had effective results for creating
a policy environment conducive to microfinance in Cambodia, Pakistan,
Philippines, and Tajikistan.
"In the Philippines, ADB support enhanced the policy and regulatory
environment by removing regulatory impediments and policy distortions,
which in turn contributed to the growth of the sector," the report said.
The ADB said that microfinance needs to reach more of the poor in Asia
and the Pacific.
The study finds that the penetration of microfinance among the poor in
the entire region remains low.
"As of the end of 2010, some 20 percent of the population living below
the poverty level of $1.25 per day had direct access to microfinance
services in 21 developing countries receiving ADB microfinance support.
This level was below ADB's goals," the agency said.
The report said that around 2.7 billion people worldwide, equivalent to
70 percent of the adult population in the world's developing countries,
have no access to formal financial services, such as savings or checking
accounts.
They represent a key and still largely untapped market segment for
financial inclusion, the ADB said.
"Improvements in the policy environment and integrating microfinance in
the formal financial sector do not automatically improve outreach to the
poor. Deliberate and innovative approaches are needed to benefit more
people currently not reached by traditional financial institutions,"
Vinod Thomas, Director General of Independent Evaluation, said.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
Published on Thursday, 18 October 2012 00:00
Written by ANGELA CELIS
Microfinance services in the Philippines are only able to reach 3.2
percent of the country's population, a study from the Asian Development
Bank (ADB) showed.
In a report titled, Microfinance Development Strategy 2000: Sector
Performance and Client Welfare, the bank said that the total number of
borrowers in the Philippines as reported by microfinance institutions is
only three million, as of end-2010.
This figure is equivalent to 3.2 percent of the 94.1 million population
as of 2010.
The data from ADB also show that microfinance services reach only 14.1
percent of the poor population in the county, or those who are below the
World Bank's international poverty line of $1.25 a day. The poor
population in the Philippines as of end-2010 is 21.3 million.
"Despite the growth in outreach and microfinance providers in Cambodia
and Philippines, penetration rates were only 3.2 percent and 1.4
percent, respectively," the report said.
As of end-2011, the Philippines had 14,935 microfinance providers, which
the ADB said was due to the large number of cooperatives that have
microfinance operations.
The ADB said that Viet Nam leads the six countries studied in the
report, in terms of the scale and outreach of microfinance services, as
well as in terms of penetration rates.
The report said that this was achieved by Viet Nam with heavy subsidies
to the state-owned Viet Nam Bank for Social Policy.
"Cambodia, Pakistan, and the Philippines, despite their well-established
policy and regulatory frameworks, were far from the scale and outreach
of Viet Nam," the report said.
"However, the microfinance industry in these countries is commercially
oriented, offering more diverse products and services to clients with
more licensed or formal institutions operating in the market," the study
added.
The ADB said that the six countries studied represent 33 percent or $916
million of the agency's microfinance portfolio in 2000 to 2010.
Pakistan received the largest amount of assistance with $488.9 million.
The Philippines had the second largest share of microfinance support
from the ADB among the six countries with 19 percent or $173 million, of
which $150 million was a sector development program loan approved in 2005.
"These two countries received the major share of the assistance among
the six countries due to their relatively large program loans, which
covered comprehensive policy reforms and capacity development for the
sector," the ADB said.
The report said that the ADB support had effective results for creating
a policy environment conducive to microfinance in Cambodia, Pakistan,
Philippines, and Tajikistan.
"In the Philippines, ADB support enhanced the policy and regulatory
environment by removing regulatory impediments and policy distortions,
which in turn contributed to the growth of the sector," the report said.
The ADB said that microfinance needs to reach more of the poor in Asia
and the Pacific.
The study finds that the penetration of microfinance among the poor in
the entire region remains low.
"As of the end of 2010, some 20 percent of the population living below
the poverty level of $1.25 per day had direct access to microfinance
services in 21 developing countries receiving ADB microfinance support.
This level was below ADB's goals," the agency said.
The report said that around 2.7 billion people worldwide, equivalent to
70 percent of the adult population in the world's developing countries,
have no access to formal financial services, such as savings or checking
accounts.
They represent a key and still largely untapped market segment for
financial inclusion, the ADB said.
"Improvements in the policy environment and integrating microfinance in
the formal financial sector do not automatically improve outreach to the
poor. Deliberate and innovative approaches are needed to benefit more
people currently not reached by traditional financial institutions,"
Vinod Thomas, Director General of Independent Evaluation, said.
--
---------------------------------------------------------------------
CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031
Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926277-8044 (TM)
My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net
Skype name: carlosaniph
--------------------------------------------------------------------
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