Pawnshops, pharmacies and other storefronts are increasing financial inclusion in the Philippines by offering services such as bill payment and remittances. According to a statement attributed to Deputy Governor Mr Nestor Espenilla of Bangko Sentral ng Pilipinas (BSP), the central bank of the country, pawnshops are now the main businesses used for money transfers. The total operating banking network in the country, including bank branches and “other banking offices” (OBOs), which offer limited banking services outside of bank branches, rose from 8,870 at the end of the first quarter of 2011 to 9,050 as of year-end.
According to Mr Espenilla, microbanking offices (MBOs), OBOs that cater to microfinance clients, are also helping increase financial inclusion in the country. In 2010, the BSP Monetary Board approved the establishment of MBOs of which there are reportedly around 700 as of July. MBOs can be attractive to clients who may feel “intimidated” by formal banks as well as helping banks gain customers in remote areas.
By Charlotte Newman, Research Associate
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:
Malaya Business Insight: “Pawnshops, Sari-Sari Stores Offer Soon Banking Services,” http://www.malaya.com.ph/index.php/business/business-news/8095-pawnshops-sari-sari-stores-offer-soon-banking-services
Bangko Sentral ng Pilipinas: “Circular no. 711,” http://www.bsp.gov.ph/regulations/regulations.asp?type=1&id=2674
Bangko Sentral ng Pilipinas: “Philippine Banking System,” http://www.bsp.gov.ph/downloads/Publications/2011/StatRep_2Sem2011b.pdf
MicroCapital.org story, July 17, 2012, “MICROCAPITAL BRIEF: Department of Trade and Industry to Allocate $66.8m for On-Lending via MFIs, Capacity Building for MSMEs in the Philippines,” https://www.microcapital.org/microcapital-brief-department-of-trade-and-industry-to-allocate-66-8m-for-on-lending-via-mfis-capacity-building-for-msmes-in-the-philippines/
MicroCapital.org story, May 9, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), BPI Globe BanKO to Develop Sustainable Energy Project for Microfinance Institutions in the Philippines,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-bpi-globe-banko-to-develop-sustainable-energy-project-for-microfinance-institutions-in-the-philippines/
MicroCapital Universe Profile: Bangko Sentral ng Pilipinas
http://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 https://www.microcapital.org/microfinanceuniverse/
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