BSP helps out low-income Filipinos

• 
• 

Business Mirror

Published on Sunday, 08 September 2013 21:55

Written by Bianca Cuaresma

THE Bangko Sentral ng Pilipinas (BSP) pushed for the further development and patronage by the various stakeholders of the microfinance framework to help the government achieve financial inclusion and alleviate poverty in the country.

At the central bank’s quarterly publication on financial inclusion, the monetary authorities declared that low-income Filipinos will be able to create, sustain and enhance even small business holdings if they are given access to financial products and services.

“The success of many Filipino micro- entrepreneurs who overcome difficulties with creativity and tenacity tells us that we are on the right track; that we should continue to work together to make the microfinance sector better and more inclusive,” BSP Governor Amando M. Tetangco Jr. said.

Microfinance, according to the BSP, is a range of financial services such as deposits, loans, payment services, money transfers and insurance for the poor and low-income households, generally for their small business, that will help them raise their income levels and improve their living standards.

“The typical clients of microfinance are the economically active, entrepreneurial poor….  Helping the poor help themselves is the essence of microfinance,” the central bank said.

It also said it has actively taken steps to push for a more accessible microfinance framework in the country.

According to the BSP, microfinance is now “fully mainstreamed” in the financial system, compared to earlier years when microfinance was just provided by a handful of banks and other non-governmental organizations (NGO).

The monetary authorities also said microfinance products have now diversified as micro-deposits, micro-insurance, micro-enterprise loans, housing micro-finance loans and micro-agri loans compared to the past when microfinance was limited only to microcredit.

“The experience of the Philippines in microfinance has proved that a previously unserved market can be profitably and viably served. Lessons learned in a microfinance provided basis toward a broader objective of financial inclusion,” the central bank said.

Earlier this year, Tetangco said 186 banks with microfinance operations were operating as of end-March this year. They cater to over 1 million clients.

He also said the combined microfinance savings totaled P8.2 billion, marking the first time the total microfinance savings exceeded the total microfinance loan portfolio of only P8 billion.

Bianca Cuaresma