Circular No. 694 (amendment of regulations on the establishment of other banking offices and notes to microfinance)

Philippines

(enacted in 2010)

Circular No. 694 of 2010, issued by Bangko Sentral ng Pilipinas (BSP), amends regulations on the establishment of other banking offices and includes notes to microfinance within Annex A of the circular. The regulation allows banks to establish micro banking offices (MBOs) in remote areas.

Annex A consists of the following sections:

  • Definition of microfinance;
  • Core principles of microfinance;
  • Characteristics of a typical microfinance client;
  • Definition of microfinance loans and micro-credit;
  • General features of microfinance loans;
  • Definition of microfinance savings deposit accounts or micro-deposits;
  • General features of a microfinance savings deposit account;
  • Definition of microinsurance; and
  • General features of a microinsurance product.