Philippines: BSP Hikes Limit On Microfinance Deposits

Apr 2013
Philippines, April, 22 2013 - The Bangko Sentral ng Pilipinas (BSP) has increased the limit on microfinance deposits from P15,000 to P40,000 to give local banks flexibility to serve low-income earners in the country.

BSP deputy governor Nestor Espenilla Jr. told reporters Monday that the move “gives MBOs (micro banking offices) greater flexibility to service the deposit transaction requirements of low-income earners,”

“Micro deposits can be transacted in MBOs,” Espenilla said. “People are saving more and they want to deal with MBOs, which are accessible to them.”

Espenilla pointed out that many rural and thrift banks have MBOs, especially those in cities and municipalities where microfinance-oriented banking services are unavailable.

Around 37 percent of the 1,635 cities and municipalities in the country do not have a single banking office, the BSP said.

Under BSP Circular 694 series of 2010, MBOs accept microdeposits, disburse microloans, 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.

The BSP said MBOs should only perform the activities for which it has been authorized to perform

Source : GMA News

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