A study conducted by the Economist Intelligence Unit (EIU), the business information arm of The Economist Group, the producer of The Economist weekly magazine, has ranked the Philippines as first in the world in terms of its microfinance regulatory framework and third in the world in terms of its microfinance business environment, following Peru and Bolivia. The study was based on data from 55 countries, measuring their level of regulatory framework, investment climate and institutional development.

After a government mandate in 2000 to recognize microfinance as a legitimate banking activity and to set regulations for its practice within the banking sector, Banco Sentral ng Pilipinas (BSP), the central bank of the Philippines, has “issued 18 circulars and undertaken major activities and initiatives for microfinance. In recent years, the success in microfinance development has paved the way for further efforts to build an inclusive financial system,” said a BSP representative.

By: Stefanie Rubin, Research Associate

About the Banco Sentral ng Pilipinas (BSP):

Established in July 1993, Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. BSP has three regional offices performing cash operations, cash administration and eighteen branch offices. BSP participates in advocacy programs concerning microfinance, financial education and consumer protection.

About Economist Intelligence Unit (EIU):

Founded in 1946, the Economist Intelligence Unit (EIU) is a research and advisory firm with more than 40 offices worldwide. EIU provides analysis and forecasts on over 200 countries.

EIU is the business information arm of The Economist Group, the producer of The Economist weekly magazine.

Additional Resources:

Source Article: Philstar.com: “EIU Ranks RP Best in Microfinance,” http://www.philstar.com/Article.aspx?articleId=550204&publicationSubCategoryId=66

Economist Intelligence Unit (EIU): http://www.eiu.com/index.asp?rf=0