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Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
Price Transparency and Microfinance Related Regulations
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Price Transparency and Microfinance Related Regulations

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Mr. Gerardo Butardo of Bangko Sentral ng PIlipinas (BSP) discusses latest updates on price transparency and microfinance related regulations by the BSP during the 2012 RBAP-MABS National Roundtable …

Mr. Gerardo Butardo of Bangko Sentral ng PIlipinas (BSP) discusses latest updates on price transparency and microfinance related regulations by the BSP during the 2012 RBAP-MABS National Roundtable Conference on June 7.

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  • 1. Session  1:   Price  Transparency  and  Microfinance   Related  Regula9ons   Gerardo Butardo Bangko Sentral ng Pilipinas 2012 RBAP-MABS National Roundtable Conference June 7-8, 2012 Hyatt Hotel & Manila  
  • 2. BANGKO SENTRAL NG PILIPINASLATEST REGULATORY UPDATESMABS ROUNDTABLE Hyatt Hotel 07 June 2012
  • 3. o Loan transaction transparencyo Revised MF reportso Microfinance Productso Extension of MSEs exemption
  • 4. o Bank – NGO relationshipo Reduced barriers to customers acquisitiono Expanded Physical Networko Expanded Virtual Reach
  • 5. o Coverage: o All banks; o NBFIs under BSP supervision; and o Entities with credit-granting facilities not covered by issuances of BSP, SEC, IC and CDA
  • 6. o  Requires charging of interest on the outstanding balance of a loano  Defines effective interest rate and requires that this will be the only rate used in all loan documents and marketing materialso  Requires a uniform disclosure of the loan termso  Requires posting in conspicuous places the revised format of disclosure statement
  • 7. o Report on Microfinance Products (monthly) and Income Statement on Retail Microfinance Operations (quarterly)o Contain data on MF loans both retail and wholesale, and micro-deposits
  • 8. o Retail MF loan – refers to a loan directly granted to end-users, e.g. m i c r o - e n t r e p r e n e u r s , microenterprises, etc.o Wholesale MF loan – refers to a loan granted to an FI for on-lending to qualified end-users
  • 9. o “Other Loans – Microenterprises” – loans granted to microenterprises but not classified as “microfinance loans”o  “ M i c r o - l o a n s ” – r e f e r t o t h e combined balances of “microfinance loans” and “other loans – microenterprises”
  • 10. o Microenterprise Loan Plus or Microfinance Plus – range from P150,001 to P300,000; borrowers w/ track record of at least 2 loan cycles in the range of P50K to P150K
  • 11. o Micro-Agri loans o Amended existing regulations to include minimum prudential requirements to approve application: o  CAMELS at least “3” & MGT score of at least “3”; o  CAR of at least 12%; o  No major supervisory concerns o  No arrearages on MF borrowings
  • 12. o Micro-Agri loans o  Non-compliant bank is given one examination-cycle to correct; provided the bank submits a viable plan
  • 13. o Extended exemption of loans granted to micro & small enterprises from certain documentary requirements, e.g. ITR, audited FS, etc., up to 31 December 2014
  • 14. o NGO/foundation engaged in retail MF operation and incorporated by any stockholders, directors, officers of a related bank as “related interest”
  • 15. o Transactions between banks and related NGOs/foundations shall be covered with notarized contracts/agreements classified as category A-3 reports
  • 16. o Bank officers are not allowed to be involved in the daily MF operations of related NGO/foundationo Issuance of general principles and standards governing business relationships between banks & their related NGO/foundations
  • 17. o Introduction of a risk-based and tiered system of classifying customers, i.e. low, average & high risk)o A framework for applying reduced, average and enhanced due diligence, customer acceptance, retention & identification process
  • 18. o Possibility of outsourcing or relying on a third party on the face to face requirement for KYC, gathering of information and documents
  • 19. o  Establishment of Micro-banking Offices (MBOs) o  Expands the products and services that can be offered o  Micro-loans o  Micro-deposits o  Check deposits of existing microfinance clients o  Microinsurance o  E-money Conversion o  Collection/ Pay out of benefits from government o  Utility payments o  Purchase of foreign currency
  • 20. o  Electronic Money Circular o  Defines electronic money o  Allows the establishment of e-money issuers (whether bank or non-bank) o  Provides the platform for an efficient retail payments platform o  Fosters the establishment of a ubiquitous agent network
  • 21. Wider  Range  of  Products   •   Micro-­‐deposits   Expanded  Physical   • Microinsurance   Network   • Micro-­‐agri  Loans   •   Opening  of  Micro-­‐banking   • Housing  Microfinance     Offices  (MBOs)     • Microfinance  Plus  Expanded  Virtual  Reach   Lower  Barriers  to   •   E-­‐money  Issuers   Customer  Acquisi9on   • E-­‐money  Network  Service   •   Updated  AnI-­‐Money  Laundering   Providers   Rules   Consumer  Protec9on  and  Financial  Literacy  
  • 22. www.bsp.gov.ph
gbutardo@bsp.gov.ph

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