Ten years ago, Marcosa Igot and Carina Gonato were just plain housewives of factory workers. Now, together with their husbands and families, they are running their own business, earning hundred of thousands of pesos a month.
Both are recipients of microfinance loans.
From a small industry a decade ago, there are now about 202 local banks who have granted over P7.3 billion in microfinance loans to more than 1 million microentrepreneurs, latest data from the Bangko Sentral ng Pilipinas (BSP) said.
These microentrepreneurs, in turn, have generated employment in their local communities and saved about P3.6 billion in bank deposits.
Pia Roman-Tayag, head for Financial Inclusion Department of the BSP, said the central bank recognizes that microinsurance is a worthy policy objective, something that can be pursued alongside the promotion of stability and efficiency in the financial system.
An inclusive financial system is one where there is greater access to much-needed financial services by more people, especially those that are traditionally unserved or underserved.
“This makes sense especially in an archipelagic country where 37 percent of our municipalities are still unbanked and many are left wanting for much-needed financial services,” BSP deputy governor Nestor Espenilla said.