BSP Initiatives on Microfinance
In 2000, the BSP was mandated by the General Banking Law to recognize microfinance as a legitimate banking activity and to set the rules and regulations for its practice within the banking sector. In the same year, the BSP declared microfinance as its flagship program for poverty alleviation. Since 2000, the BSP has been proactive in the development of microfinance using a three pronged approach: I) To provide the enabling policy and regulatory environment, II) To increase the capacity of the BSP and banking sector on microfinance operations, and III) To promote and advocate for the development of sound and sustainable microfinance operations.
BSP Circulars Related to Microfinance
Year End Reports on BSP Microfinance Initiatives:
The year 2011 was characterized by the mainstreaming of financial inclusion in the domestic and international policy agendas, in light of growing recognition of the importance of financial inclusion as a policy objective.
The Philippine Development Plan
(2011-2016) laid out its vision for
the financial sector as a "regionally responsive,
development-oriented and
inclusive financial system which provides for the evolving needs
of its diverse public".
In 2009, the G20 leaders, amid
the global financial crisis and
economic downturn, recognized the reinforcing
policy objectives of financial
stability, financial inclusion and
consumer protection. To
institutionalize this
declaration, the G20 Global Partnership for Financial
Inclusion (GPFI) was launched
in 2010 and held its inaugural
meeting in 2011 to implement
a concrete Financial Inclusion Action Plan. The BSP is one of
the few non-G20 members
that are a member of the GPFI
working groups.
The year 2010 was a good year for Philippine microfinance. The Economist Intelligence Unit (EIU), in its "Global Microscope on the Microfinance Business Environment", ranked the Philippine regulatory environment for microfinance as the best among 54 countries around the world. In terms of overall microfinance business environment, the Philippines moved up the rank, occupying the number two position in 2010, from being number three in 2009.
The EIU cited the BSP's regulations that expand the range of microfinance products that banks can offer to their clients as the main reason for the upward ranking of the Philippines. This citation affirms that the BSP's regulatory approach and initiatives in microfinance and financial inclusion are making an impact, and are truly benefiting the microfinance market.
In 2009, the First Annual Global Microfinance Index and Study declared the Philippines as the best in the world in terms of its microfinance regulatory framework.
This Study by the Economist Intelligence Unit looked at 55 countries and measured each country’s state of regulatory framework, investment climate and institutional development.
Overall, the Philippines ranked third in the world following the usual microfinance leaders, Peru and Bolivia.
2008 saw continuous growth and dynamism in the Philippine microfinance industry with the backdrop of an enabling policy and regulatory environment. New players, a wider range of products and services, technological innovations and applications have driven much of the
recent microfinance developments in the country.
The microfinance industry in the Year 2007 was characterized by innovation, dynamism and continued growth. The Bangko Sentral ng Pilipinas (BSP) remained responsive to these changes while maintaining the focus of its microfinance initiatives on increasing the scale and scope of microfinance in the country, specifically within the banking sector.
The Bangko Sentral ng Pilipinas (BSP) focused its microfinance initiatives for 2006 on increasing the scale and scope of microfinance in the country, specifically within the banking sector. The BSP endeavored to build on the previous year’s (the 2005 International Year of Microcredit) gains and momentum to be able to further develop microfinance
The Year 2005 was declared by the United Nations as the International Year of Microcredit to highlight the role of microfinance in poverty alleviation and economic development.
Through BSP's advocacy, 2005 was also declared as the Philippine Year for Microfinance through Presidential Proclamation 719 and Senate Resolution 124.
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