Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently launched new regulations that set requirements for financial institutions that offer microinsurance.
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MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Study Indicates High Density, Advanced Technology, Larger Profits in Philippine Banking Sector
According to a report from the Malaya Business Insight, a Philippine newspaper, a study by Dr Johnny Noe E Ravalo of Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, offered a range of data on the banking sector in the Philippines including that the bank density is 8.6 banks per 1,000 square kilometers, at least five banking offices exist in every municipality or city, there are approximately 10,700 persons per banking office, 207 microfinance banks exist nationwide and the largest concentration of banks (32 percent) occurs in the capital. The actual report by Dr Ravalo is not available online.
MICROCAPITAL BRIEF: International Finance Corporation (IFC) Grants $771k to Bank South Pacific (BSP) Rural Through Pacific Microfinance Initiative to Bring Electronic Banking Services to Rural Entrepreneurs in Papua New Guinea
The International Finance Corporation (IFC), the investment arm of the World Bank Group, a multilateral development finance organization based in Washington, DC, recently provided Bank South Pacific (BSP) Rural, a subsidiary of the privately-owned commercial bank BSP, a USD 771,000 “performance-based” grant through the Pacific Microfinance Initiative, a joint effort between the Australian government and IFC, to bring electronic banking services to small business owners in Papua New Guinea.
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Approves Establishment of Microfinance Institutions in Underserved Areas of the Philippines
Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, announced that microfinance institutions (MFIs) can now start operations in cities and rural areas that had no programs aiming at low-income groups.
MICROCAPITAL BRIEF: International Finance Corporation (IFC) and IFC Capitalization Fund Agree to Invest $140m in Bank South Pacific (BSP) of Papua New Guinea to Extend Financial Services in Pacific Islands
The International Finance Corporation (IFC), a member of the World Bank Group, and the IFC Capitalization Fund, a USD 3 billion global equity and subordinated debt fund, have signed an agreement to invest USD 140 million in Bank South Pacific (BSP), one of the largest commercial banks in Papua New Guinea, in an effort to expand financial services across the Pacific Islands.
MICROCAPITAL BRIEF: Central Bank of the Philippines (BSP) Approves Increase in Ceiling for Micro Housing Loans for Rural Bankers’ Association of the Philippines (RBAP)
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).
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Considering Increase in Microfinance Loan Cap
Bangko Sentral ng Pilipinas (BSP), the central bank of the Republic of the Philippines, has announced that it is considering raising the maximum microfinance loan size of PHP 150,000 (USD 3,200) to better serve small- and medium-sized enterprises (SMEs). BSP recognizes 214 microfinance banks in the Philippines, with outstanding loans of PHP 6.4 billion (USD 137 million) to 900,000 microentrepreneurs [1]. BSP states that SMEs make up 99.7 percent of all registered companies, account for 70 percent of all jobs and manufacture 30 percent of Filipino goods.
MICROFINANCE EVENT: “African Mobile Micro-Finance & M-Remittances Summit” Conference Hosted by BSP Events and Forums May 10 – May 11, 2010 in Ikoyi, Lagos
Event Name: African Mobile Micro-Finance & M-Remittances Summit
Event Date: May 10 – May 11, 2010
Event Location: Ikoyi, Lagos
Event Website: http://www.bspmediagroup.com/event.php?EID=58
See Our Comprehensive Event Calendar Here: http://microfinanceassociation.ning.com/events
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Issues 2009 Annual Report Highlighting Increase in Access to Microfinance through Mobile Banking
Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently released its 2009 annual report highlighting developments in the Philippine economy and microfinance industry.
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Allows Smaller Banks to Provide Microinsurance Products
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has decided to allow smaller banks such as rural, cooperative, and thrift banks to provide microinsurance products.
MICROCAPITAL BRIEF: The Bangko Sentral ng Pilipinas (BSP) Adopts New Rules to Ease Loan Access for Small Farmers
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has adopted new rules making it easier for small farmers to obtain microloans from banks [1,2].
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Encourages Banks to Extend Microfinance Housing Loans
The Bangko Sentral ng Pilipinas (BSP) recently published Circular No. 678 titled, “Rules and Regulations for the Approval and Provision of Housing Microfinance,” which encourages banks to extend microfinance housing loans.
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) And Philippine Deposit Insurance Corp (PDIC) Create Fund to Strengthen Rural Banks That Offer Microfinance Loans
Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, and the Philippine Deposit Insurance Corp (PDIC), the national deposit insurer, have created the Strengthening Program for Rural Banks (SPRB), which will raise PHP 5 billion (USD 108 million) in funding to encourage mergers and consolidations of ailing banks in the rural banking sector. In the Philippines, rural banks are the primary source of microloans in the countryside. SPRB was created in response to the spate of failures and closures experienced by the rural banking sector including, in the first quarter of 2009 alone, the closure of 19 rural banks by the BSP that were then placed under the receivership of the PDIC. PDIC president Jose Nograles states that an estimated fifteen percent of rural banks are thought to be weak or distressed. BSP Governor Amando Tetangco Jr. notes that of the 179 rural banks that were placed under the BSP’s “prompt and corrective action” program, 103 rural banks were found to be undercapitalized. Under the SPRB scheme, investors will be able to tap these funds in order to acquire ailing rural banks and inject fresh capital into these banks.
MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Reviews Disclosure Rules
Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, will review its rules and regulations concerning the disclosure of interest rates, fees, and charges on microfinance loans with the goal to enhance consumer protection. At this stage, Pia M. Roman, the Director of BSP’s Inclusive Finance Advocacy department, states that the focus is to gather information through consultations with banks on the adoption of uniform standards for computing interest rates. Ms. Roman supports the use of “declining balance method” in which “interest charges are computed based on the balance of a loan and not the original size of the loan.” It contrasts with the “flat rate method” which calculates rates based on the amount of the loan at the beginning regardless of any amount that the borrower has already repaid.
MICROCAPITAL.ORG BRIEF: Philippines Central Bank (BSP) to Receive Technical Assistance from International Finance Corporation and German Technical Cooperation (GTZ) to Supervise and Regulate Small and Medium Enterprise (SME) Lending
According to an article in the online publication ‘Trading Markets,’ The Phillippines Central Bank (BSP) has signed an agreement with the International Finance Corporation (IFC), the investment arm of the World Bank, and the German Technical Cooperation (GTZ), a development enterprise of the German government, to receive technical assistance for supervision and regulation of lending to small and medium enterprises (SMEs) [1,2,3,4]. Employees from the BSP will be provided with training programs to enhance supervision and regulation of banks that extend loans to SMEs [1]. Additionally, the IFC and GTZ hope to generally improve BSP examination procedures in terms of SME lending [1]. The ‘Trading Markets’ articles states that SMEs in the Philippines currently struggle with credit access, only receiving 11-21 percent of “total funding requirements,” as opposed to the world benchmark of 30 percent [1]. This agreement, therefore, aims to “[enhance] the enabling policy and regulatory environment” for SME lending [1].
MICROCAPITAL STORY: Bangko Sentral ng Pilipinas (BSP), in Agreement with Housing and Urban Development Coordinating Council (HUDCC), Rolls Out New Housing Mircofinance Product for the Economically Active Poor
In February 2008, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) approved a new microfinance product designed specifically for housing. The new initiative was jointly proposed by the Housing and Urban Development Coordinating Council (HUDCC) and the Development Bank of the Philippines (DBP), and is part of a government-mandated initiative to provide housing solutions for the poor. The initiative is crucial as nearly 33 percent of Filipino families live below the poverty line. However, the viability of the plan is yet untested: the BSP’s close scrutiny of microfinance operations has alienated banks in the past, driving them away from offering the small, risky loans. Another such government-mandated plan might actually undermine the impact of the loan product.
PRESS RELEASE: BSP Approves Housing Microfinance Product to Address Shelter Needs of the Economically Active Poor
Source: Bangko Sentral ng Pilipinas (BSP).
SPECIAL REPORT: The Impact of Digital Financial Inclusion on Global Development
In September 2015, every UN member country endorsed the 2030 Agenda for Sustainable Development, which comprises 17 target areas known as the Sustainable Development Goals (SDGs).
After falling from 10.1 percent in 2015 to 8.6 percent in 2018, the global poverty rate increased to 9.2 percent in 2020 because of the COVID-19 pandemic, reversing a long trend of poverty reduction. Other headwinds such as armed conflicts, rising inflation, food insecurity, and political and social unrest also are affecting global development, and the UN estimates that these crises combined to cause an additional 95 million people to live in extreme poverty in 2022.
On the other hand, the digital revolution has made many people’s lives easier with access to mobile phones, the internet and other tools. Digital financial inclusion (DFI) and its innovative business models have had a particularly disruptive effect, bolstering financial inclusion worldwide.
Impact on Sustainable Development Goals
DFI is enabling all types of pathways to advance the achievement of the SDGs, strengthening the link between financial inclusion and development. In 2016, CGAP and