Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has approved an increase in the ceiling of micro housing loans disbursed by microfinance institutions (MFIs) accredited by Rural Bankers’ Association of the Philippines (RBAP), a government entity which was founded in 1955, from PHP 150,000 (equivalent to USD 3,200) to PHP 300,000 (equivalent to USD 6,400). BSP has reportedly also allowed longer loan terms which can now range up to 15 years, in contrast to the previous 6-month maximum loan period [1].
Only banks that are RBAP-accredited can offer microfinance housing products, according to BSP’s Deputy Governor, Nestor Espenilla Jr, who signed a resolution detailing these requirements.
According to Joseph Omar Andaya, RBAP President, this new ceiling will “enable microfinance institutions, like rural banks, to increase the depth and breadth of their outreach to provide financial services addressed to the segments belonging to the economic base of the pyramid.”
By Julia Korn, Research Associate
About The Bangko 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 and cash administration and eighteen branch offices. BSP participates in advocacy programs concerning microfinance, financial education and consumer protection.
About The Rural Bankers’ Association of the Philippines (RBAP):
Founded in 1955, RBAP was initially established by representatives from the original eighteen rural banks operating in the Philippines. RBAP’s public intention is “to become the leading force in the Philippine national banking system in bringing the benefits of the economic system to increasing numbers of rural customers” through a coordinated banking system.
Sources and Additional Resources:
[1] The Manila Times. “BSP approves higher cap, longer term for micro loans” by Lailany P. Gomez on June 25, 2010. http://www.manilatimes.net/index.php/business-columns/20157-bsp-approves…
MicroCapital Universe. Rural Bankers’ Association of the Phillippines (RBAP). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Rur…
MicroCapital Universe: Bangko Sentral ng Pilipinas (BSP). https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ban…
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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