Microfinance backed – Bangko Sentral supports greater depth in the Philippines

Written by Patrick Fisher April 30, 2013 0 comment

By Julito G. Rada | Posted on Apr. 29, 2013 at 12:00am | 229 views



The Rural Bankers Association of the Philippines supported the Bangko Sentral’s decision to raise the ceiling on microfinance deposits from P15,000 to P40,000.

“It is very encouraging to know that the rural banking industry and the BSP share the same vision of greater financial inclusion that will eventually create the much-needed push for economic development in the countryside. By increasing the deposit cap, we give rural depositors greater flexibility in saving their hard-earned cash,” RBAP president Edward Leandro Garcia Jr. said in a statement.

“Usually, depositors in rural areas are badly affected during emergencies because in such cases, they have limited financial capacity or at times totally devoid of money to be used for contingencies,” Garcia said.

Garcia said the increase in levels of micro-deposits did not only give the marginalized sector the capability to insulate themselves during inopportune times but also put them in a prime position to enhance their respective livelihood.

Micro-banking officers are allowed to collect payments, sell and market microinsurance products, receive and pay out authorized remittance transactions, act as cash in/out points for electronic money, receive utility payments, collect premiums, and pay out benefits, and purchase a limited level of foreign currency.