MICROCAPITAL BRIEF: Microfinance Credit Bureau, MiDAS, Launched by Microfinance Institutions in Philippines
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Thursday, February 9, 2012

MICROCAPITAL BRIEF: Microfinance Credit Bureau, MiDAS, Launched by Microfinance Institutions in Philippines

» Posted by in Category: Risks,South Asia, East Asia and Pacific at 6:48 am

Microfinance institutions (MFIs) Taytay Sa Kauswagan Incorporated (TSKI), Opportunity Kauswagan Bank, CARD Bank, CARD NGO, Negros Women for Tomorrow Foundation Incorporated, Ahon Sa Hirap and ASA Philippines signed a memorandum of agreement creating the Microfinance Data Sharing System (MiDAS) in January of this year after an initial pilot phase in 2011 [1]. Overindebtedness due to borrowing from multiple MFIs was the impetus for the creation of MiDAS.

The seven participating institutions are voluntarily submitting data to MiDAS, which can be used for assessing a prospective borrower’s credit worthiness. The Banking Association of the Philippines Credit Bureau (BAP-CO) is partnering with the participating MFIs to implement MiDAS [2]. The creators of MiDAS encourage other MFIs to contribute and participate [1]. A functionality which differentiates MiDAS from traditional credit information systems is that MiDAS allows users to search for information on barangays (the smallest administrative division in the Philippines, similar to a village, ward, or district) and not only on clients [2].

There are about 200 banks and credit institutions in the Philippines that engage in microfinance [1]. The US-based NGO Microfinance Information Exchange (MIX) reports data on 93 MFIs in the Philippines that have an aggregate loan portfolio of USD 632 million and serve 3 million borrowers.

By Courtney Snelling, Research Associate

About Taytay Sa Kauswagan Incorporated (TSKI): Taytay sa Kauswagan Incorporated (TSKI), established in 1986, is a Christian development organization in the Philippines which focuses on alleviating poverty through microfinance. TSKI provides group-based loans, individual loans, and offers its clients technology training and product development assistance. In 2011, TSKI reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 47.3 million, a gross loan portfolio of USD 24.1 million and 205,022 borrowers.

MicroCapital Universe Profile: Taytay Sa Kauswagan, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Taytay+Sa+Kauswagan+Inc.+%28TSKI%29

About Opportunity Kauswagan Bank (OK Bank): Four Philippines-based organizations and US-based Opportunity International network established Opportunity Kauswagan Bank also known as Opportunity Microfinance Bank (OK Bank) in 2001. OK Bank’s objective is to provide microfinance services for poor entrepreneurs in thePhilippines. OK Bank provides credit and savings products in addition to business development training. OK Bank extends unsecured loans which range from USD 80 to USD 500. OK Bank also provides loans over USD 900 to individual entrepreneurs as additional capital for growing larger businesses. In 2010, OK Bank reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 11.1 million, a gross loan portfolio of USD 5.8 million and 30,793 borrowers.

MicroCapital Universe Profile: Opportunity Kauswagan Bank (OK Bank), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+Kauswagun+Bank+%28OK+Bank%29

About CARD NGO and its subsidiary CARD Bank: Rural development practitioners organized the Center for Agriculture and Rural Development Incorporated (CARD NGO) as a social development foundation in December 1986. CARD NGO’s mission was to establish a bank created for, owned by and managed by landless rural women. In 1997, CARD NGO obtained a banking license from the Bangko Sentral ng Pilipinas to operate as a rural bank in San Pablo City, with an initial paid-up capital of PHP 5 million (USD 167,000. After obtaining a banking license, CARD NGO transferred some of its NGO branches into CARD Bank. In 2010, CARD Bank reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 63.4 million, a gross loan portfolio of USD 44.7 million and 267,282 borrowers. In 2010, CARD NGO reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 87.9 million, a gross loan portfolio of USD 66.8 million and 606,488 borrowers.

MicroCapital Universe Profile: Center for Agriculture and Rural Development Incorporated, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center+for+Agricultural+and+Rural+Development+%28CARD%29+Rural+Bank

About Negros Women for Tomorrow Foundation Incorporated (NWTF): Negros Women for Tomorrow Foundation Incorporated (NWTF), a non-governmental organization established in 1984, seeks to empower women by providing access to finance. NWTF makes loans using a methodology patterned after the Grameen Bank model of Bangladesh. In 2010, NTWF reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 16.6 million, a gross loan portfolio of USD 11.1 million and 85,808 borrowers.

MicroCapital Universe Profile: NegrosWomen for Tomorrow Foundation (NTWF), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Negros+Women+for+Tomorrow+Foundation+Incorporated

About Ahon Sa Hirap: Ahon Sa Hirap (ASHI) is a microfinance institution in the Philippines, established in 1989, which bases its loan programs on the Grameen Bank model of Bangladesh. The goals of Ahon Sa Hirap include: becoming a sustainable microfinance institution, facilitating the empowerment and enhancement of women and their families, delivering quality and professional microfinance service, integrating and sharing expertise among microfinance institutions (MFIs) and anti-poverty institutions. In 2010, Ahon Sa Hirap reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 8.8 million, a gross loan portfolio of USD 5.2 million and 22,196 borrowers.

MicroCapital Universe Profile: Ahon Sa Hirap (ASHI), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ahon+Sa+Hirap

About ASA Philippines Foundation: ASA Philippines Foundation (ASA) is a non-profit organization, established in 2004, which focuses on microfinance. ASA’s main office is in Manila, Philippines. Since its formation, ASA has expanded its services across the Philippines. ASA provides loans, savings, and insurance products in addition to business development training and academic scholarships for clients and their children. In 2010, ASA Philippines reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) gross loan portfolio of USD 24.5 million and 299,433 borrowers.

MicroCapital Universe Profile: ASA Philippines Foundation, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ASA+Philippines+Foundation

About Banko Sentral ng Pilipinas (BSP): 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, the headquarters of BSP is in Manila, Philippines. The bank has three regional offices performing cash operations and eighteen branch offices. BSP participates in various advocacy programs concerning microfinance, financial education and consumer protection.

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

About Bankers Association of thePhilippines: Bankers Association of the Philippines (BAP) is a nonprofit organization established in 1949 to represent the interest of banks throughout thePhilippines. BAP works in collaboration with local legal entities and the Philippines Chamber of Commerce to advocate regarding laws that relate to banking. Members of BAP include Asia United Bank, Development Bank of the Philippines, Philippine Veterans Bank and Union Bank of thePhilippines.

MicroCapital Universe Profile: Bankers Association of the Philippines, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ban…

Sources and Additional Resources:

[1] Philippine Daily Inquirer, business.inquirer.net: “Credit Bureau for Microfinance Formed” by Michelle V. Remo, 1/10/2012. http://business.inquirer.net/39021/credit-bureau-for-microfinance-formed

[2] phildevfinance.com: “A Credit Bureau for Microfinance” by Carlos Ani, Seedfinance Corporation, http://phildevfinance.posterous.com/a-credit-bureau-for-microfinance

[3] BusinessWorld Online, www.bworldonline.com “Microfinance Firms Set Up Credit Bureau”, by N.J.C. Morales.1/10/2012. http://www.bworldonline.com/content.php?section=Finance&title=Microfinan

[4] MicroCapital.org article, December 12, 2011: “MICROCAPITAL BRIEF: Philippine Central Bank May Raise Microfinance Loan Ceiling, Roll Out Central Credit Information Corporation (CCIC) by Year End”, http://www.microcapital.org/microcapital-brief-philippine-central-bank-m….

[5] MicroCapital.org article, January 19, 2011: “MICROCAPITAL BRIEF: Bankers Association of the Philippines – Credit Bureau Incorporated (BAP-CB) Offers Rural Banks, Microfinance Providers Access to Credit Information System”, http://www.microcapital.org/microcapital-brief-bankers-association-of-th

[6] CGAP: “Implementing Rules and Regulations of the Credit Information System Act No. 9510” http://www.cgap.org/p/site/c/template.rc/1.9.46127/

[7] MicroCapital.org article, April 12, 2011, “MICROCAPITAL BRIEF: Bankers Association of the Philippines (BAP) to Launch Online Credit Information Bureau Run by Microfinance Institutions (MFIs)”, http://www.microcapital.org/microcapital-brief-bankers-association-of-th

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