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Publication Detail
ADBI 2005-01: Creating an Enabling Policy Environment for Microfinance

This presentation reviews the demand of microfinance by the micro-enterprise sector in the Philippines. It reveals that the bottom 30% of poor Filipinos manage at least two micro-enterprise activities; of these, less than a fourth have access to credit. The presentation discusses: * Government initiatives in microfinance and their limited successes. * Barriers to microfinance, that include, o Perception that poor are high risk; o High transaction costs; o Regulatory barriers; o Poor's feeling of intimidation by formal institutions; o Lack of infrastructure and physical access to formal institutions. * Laws and issuances supporting microfinance. * Government's national strategy for microfinance. Further, it reviews the activities and involvement in microfinance of Bangko Sentral ng Pilipinas' (BSP), which has a 3-pronged approach: * Creation of an enabling policy and regulatory environment; * Increase in the capacity and skills of the BSP and the banking sector on microfinance; * Promotion and advocacy. Finally, the presentation discusses BSP's support to microfinance through: * The establishment of microfinance-oriented banks; * Policy and regulatory initiatives; * Introduction of performance standards for institutions engaged in microfinance; * Training and capacity building efforts; * Promotion and advocacy campaigns and initiatives.

PinoyME Foundation
Authors Keywords
Alindogan, Antonino L.; microfinance; microenterprises; BSP;
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Published in 2005 and available in the ADBI or can be downloaded as full text Downloaded 702 times since November 25, 2011