MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Doubles Microfinance Loan Ceiling to USD 6,835, BPI Globe BanKO to Provide Micro-Agri Loans to Farmers in the Philippines

A new microfinance loan category called “microfinance plus” has been approved by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), raising the overall microloan ceiling from PHP 150,000 (USD 3,417) to PHP 300,000 (USD 6,835). To qualify, borrowers must have participated in at least two previous loan cycles, repaying loans of between PHP 50,000 (USD 1,139) and PHP 150,000 (USD 3,417) [1][2].

In other news, microfinance-focused savings bank BPI Globe BanKO is planning to launch a micro-agri loan product during 2012. Farmers that maintain an average daily savings balance of PHP 2,000 (US 45) may request a loan that is equal to the amount of their deposit balance. Accountholders will also be able to access banking services via the Globe Telecoms mobile phone network. There are approximately 1,500 BPI Globe BanKO outlets throughout the Philippines. BPI Globe BanKO is a joint venture between Ayala Corporation, a Philippine conglomerate; Bank of the Philippine Islands (BPI), a commercial bank; and Globe Telecom Incorporated [3].

The US-based nonprofit Microfinance Information Exchange (MIX) reports data on 93 microfinance institutions in the Philippines with a total loan portfolio of USD 632 million reaching 3 million borrowers [4].

About Bangko Sentral ng Pilipinas
Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. Established under the provisions of the New Central Bank Act of 1993, BSP is headquartered in Manila and has three regional offices performing cash operations and eighteen branch offices. BSP participates in various advocacy programs concerning microfinance, financial education and consumer protection.

About BPI Globe BanKo
BPI Globe BanKO is a joint venture between Ayala Corporation, a Philippine conglomerate; Bank of the Philippine Islands (BPI), a commercial bank; and Globe Telecom Incorporated, a telecommunications provider. BPI Globe BanKO is based in San Juan, Philippines, and offers loans and savings services to individual clients and microfinance institutions (MFIs). As of 2011, BPI Globe BanKO had authorized capital of PHP 1.8 billion (USD 40.9 million) and served approximately 340,000 small businesses. BPI Globe BanKO does not report to the US-based nonprofit Microfinance Information Exchange (MIX).

By Charlotte Newman, Research Associate

Sources and Additional Resources:

[1] Manila Bulletin Publishing Corporation: “BSP Okays New Microfinance Loan” http://www.mb.com.ph/articles/346712/bsp-okays-new-microfinance-loan

[2] BSP: http://www.bsp.gov.ph/downloads/regulations/attachments/2011/c744.pdf

[3] Malaya Business Insight: “BPI Globe BanKO to Launch Micro-Agri Product” http://www.malaya.com.ph/01112012/busi7.html

[4] Microfinance Information Exchange: Microfinance in Philippines: Country Profile http://www.mixmarket.org/mfi/country/Philippines

MicroCapital.org story, December 12, 2011, “MICROCAPITAL BRIEF: Philippine Central Bank May Raise Microfinance Loan Ceiling, Roll Out Central Credit Information Corporation (CCIC) by Year End,” https://www.microcapital.org/microcapital-brief-philippine-central-bank-may-raise-microfinance-loan-ceiling-roll-out-central-credit-information-corporation-ccic-by-year-end/

MicroCapital Universe Profile: BSP
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangko+Sentral+ng+Pilipinas+%28BSP%29

MicroCapital Universe Profile: BPI
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=BPI+Globe+BanKO#Description_140_word_limit_

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