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Institutions providing microfinance services in the Philippines include: pawn shops, credit unions, rural banks, microfinance NGOs(NGO-MFIs), thrift banks, cooperative banks and commercial banks. A number of informal institutions also provide microfinance services. Several of these institutions (ex. thrift banks, rural banks, pawnshops) are regulated by the Bangko Sentral ng Pilipinas (BSP); credit unions are regulated by the Cooperative Development Authority. NGO-MFIs, which cannot accept deposits, are not regulated by any government regulatory agency. The government is in the process of establishing an extensive credit information system by the end of the year. Additionally, the Philippines is at the forefront of the development of a branchless banking industry and has focused significant regulatory attention to this growth area.



Microfinance & Banking

Consumer Protection

Financial consumer protection in the Philippines is pursued through many measures embodied in various laws and regulations, some specifically focusing on the provision of microfinance services. The protection of microfinance clients is a main concern for policy makers and financial regulators, with the aim to ensure transparency of transactions and fair practices, and to establish mechanisms to provide for redress and recourse. Bangko Sentral ng Pilipinas (BSP) implements the Truth in Lending Act No. 3765 and the Consumer Act No. 7394 of the Philippines. Within BSP, the Consumer Affairs Group specializes in consumer protection. The Securities and Exchange Commission (SEC) oversees compliance with consumer protection regulation by non-profit organizations. In 2007, the National Credit Council (NCC) and the National Anti-Poverty Commission (NAPC) published the Microfinance Consumer Protection Guidebook.

Branchless Banking