MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) reported a double-digit growth in microfinance loans as of end-June this year, providing financial stability to microentrepreneurs.
In a speech during the awarding ceremony of the 2015 Citi Microentrepreneurship Awards, BSP Governor Amando Te-tangco Jr. said microfinance loans extended by banks grew 14.3 percent to P10.4 billion in end June from P9.1 billion in end June last year.
Tetangco said the number of borrowers grew 12.4 to 1.27 million borrowers from 1.13 million.
Tetangco said there are currently 173 banks engaged in microfinance.
“We see therefore an increase in both microfinance loans and borrowers,” he added.
He lauded microentreprenuers, microfinance institutions, government agencies and private sector advocates for the growing success of the Philippine microfinance sector.
“In the process, millions of entrepreneurs have achieved financial stability and the quality of life of millions have also improved because of microfinance,” Tetangco said.
He said financial inclusion has improved the lives of microentrepreneurs who serve as catalysts for development in their communities.
Tetangco said the previous winners of Citi Microentrepreneurship Awards have gone global and have successfully penetrated the export market with their products particularly under the Association of Southeast Asian Nations (Asean) integration.
He added the recently concluded Asia Pacific Economic Cooperation (Apec) Leaders’ Summit in the Philippines focused on micro, small and medium enterprises (MSMEs) development as a means to promote inclusive growth.
Loans extended by banks to MSMEs grew 11 percent to P427 billion in the first half from a year ago level of P384.8 billion.
This resulted in the banking system’s overall compliance ratio of 9.8 percent, slightly lower than the required 10 percent mandated under RA 6977 as amended by RA 8289 and RA 9501 otherwise known as the Magna Carta for SMEs.