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.
The loan cap was put in place in October 2003, and BSP Governor, Amando Tetangco, Jr., was quick to point out that the Filipino microfinance market has grown and diversified significantly since that time, and that regulation must grow with the market [2]. Mr Tetangco stated that any expansion would occur with a focus on supervision and serving the economically vulnerable [1]. No indication of the new loan size has been given.
By Matthew Castner, Research Assistant
About 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.
Additional Resources:
[1] “Bangko Sentral may raise ceiling on micro-loans:” by Nikka Corsino, June 3, 2010, GMANews.TV, http://www.gmanews.tv/story/192579/bangko-sentral-may-raise-ceiling-on-micro-loans
[2] “BSP mulls increase in microfinance loans:” June 4, 2010, Malaya Business Insight, http://www.malaya.com.ph/06042010/busi4.html
MicroCapital’s Microfinance Universe profile: Bangko Sentral ng Pilipinas (BSP): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangko+Sentral+ng+Pilipinas+%28BSP%29%2C#Bangko_Sentral_ng_Pilipinas_BSP_
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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