MANILA, Philippines - Delegates from Asia-Pacific Economic Cooperation (APEC) member-economies reiterated the need to improve access to finance and spread financial inclusion to low income households and small enterprises to promote a more open and accessible financial environment in the region.
During the second day of a scheduled four-day APEC forum in Tagaytay, delegates agreed that inclusive financial system plays a crucial role in spurring the growth of small and medium enterprises and economic development as well.
Small businesses, which account for more than 90 percent of all enterprises in the region, face challenges to access external financing.
Delegates said while there have been inroads in SME financing, APEC member-countries still have a lot to do to create new growth opportunities for small business, which are the lifeblood of economies across the region.
The Philippines, which hosts this year’s APEC leaders’ meeting, has made boosting support for SME financing the region a priority.
“Financial inclusion is vital in achieving the goal of enhancing inclusivity of growth of economies. If we help SMEs become more productive, such as by easing accessibility of financing, we help our economies generate more jobs and boost incomes,” Finance Undersecretary Gil Beltran said.
The Philippines, which is acknowledged to have one of the best regulatory environments for microfinance in the world, has committed to continue pushing the agenda of financial inclusion further.
Outstanding microfinance loans in the Philippines had consistently grown over the years, hitting P9.4 billion as of the end of September 2014 from P2.6 billion in 2002.
Over the same period, microfinance borrowers in the Philippines grew from about 390,000 to nearly 1.16 million, while the number of banks with microfinance units jumped to 183 from 119.
Delegates likewise cited the need to make credit data accessible to lenders in order to give SMEs a better chance of obtaining funding.
At the same time, they discussed ways to ensure security of information and credit transactions in order to build confidence of the public on credit information systems.