Bangko Sentral ng Pilipinas (BSP), the central banking authority of the Philippines, has announced it is considering strengthening its Special Program for Rural Banks (SPRB), which lays out guidelines for assisting “distressed” rural banks. Currently, such banks may take on strategic partnerships with fellow rural banks only. BSP Governor Amando M Tetangco Junior reportedly said BSP is looking at enlarging the pool of possible third-party investors to include non-rural banks and thrift banks, which focus on deposit-taking.
The effort to strengthen countryside financial institutions comes as data for the third consecutive quarter indicates the microfinance industry’s soured loan ratio deteriorated from the previous quarter. Bad loans in rural banks reportedly averaged 10.4 percent at the end of March 2011 after accelerating from PHP 10.3 billion (USD 243 million) to PHP 10.9 billion (USD 258 million).
By Charlotte Newman
About Bangko Sentral ng Pilipinas
Bangko Sentral ng Pilipinas (BSP) is the central bank of the Republic of the Philippines. Established under the provisions of the New Central Bank Act of 1993, BSP is headquartered in Manila and has three regional offices performing cash operations and eighteen branch offices. BSP participates in various advocacy programs concerning microfinance, financial education and consumer protection.
Sources and Additional Resources:
Business Mirror: “BSP to Allow Thrift, Other Banks to Boost Rural Banking System,” http://businessmirror.com.ph/home/banking-a-finance/25812-bsp-to-allow-thrift-other-banks-to-boost-rural-banking-system
MicroCapital.org story, April 4, 2012, “MICROCAPITAL BRIEF: Microinsurance Reaches 3m in the Philippines, More Expansion Predicted in Microcredit as Commercial Banks Enter Microfinance,” https://www.microcapital.org/microcapital-brief-microinsurance-reaches-3m-in-the-philippines-more-expansion-predicted-in-microcredit-as-commercial-banks-enter-microfinance/
MicroCapital.org story, February 21, 2012, “MICROCAPITAL BRIEF: Bangko Sentral ng Pilipinas (BSP) Tightens CAMELS, Other Requirements for Banks Offering Agricultural Microfinance Loans in the Philippines,” https://www.microcapital.org/microcapital-brief-bangko-sentral-ng-pilipinas-bsp-tightens-camels-other-requirements-for-banks-offering-agricultural-microfinance-loans-in-the-philippines/
MicroCapital Universe Profile: Bangko ng Sentral Pilipinas
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bangko+Sentral+ng+Pilipinas+%28BSP%29
Browse the MicroCapital Universe and add your entry to the wiki at http://microcapital.org/microfinanceuniverse/
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