Stakeholders’ Workshop for Sustainable Finance for ISF Housing
Brief Overview of the MF Sector in the Philippines (2010 MF Industry Report, MCPI) MF Programs, Products and Services Some Insights
http://www.mixmarket.org/mfi/country/Philip pines Loans: $1.2B (Php 51.6B) Borrowers: 4.1 M Deposits: $810.7M (Php34.9B)
Depositors: 5.1 M
1980’s: Grameen Replicators (APPEND, PHILNET and then MCPI) Microfinance Policy Initiatives: Social Pact on Credit then the National Credit Council in 1993 National Strategy for Microfinance in 1997 Regulatory Framework for Microfinance in 2002 PESO Standard for Performance
And more new regulations being introduced...
Providers of Microfinance Services Thrift, Rural and Cooperative Banks
Credit and Multi-purpose Cooperatives NGOs doing Microfinance Private Lending Companies ???
MFIs subscribe to the double bottom line principle Financial Sustainabilty
Social Responsibility
Well Performing Micro Finance
Classification Retailers ▪ ▪ ▪ ▪
National: ex. CARD, TSPI Regional: ex. ASKI, NWTF Local: ex. KSP-Seed, Baba’s Fdn, ASHI Sectoral: ex Kasagana-Ka Dev’t Center
Wholesalers: PCFC, LandBank, DBP, SBC, Banks Associations and Councils: MCPI, RBAP, NATCCO, TA/Support Service Providers
Credit for Business/Livelihood Savings Mobilization or Capital Build-up Credit for Health + Credit for Education + Credit for Housing +
Used for repairs and improvements, home extension Follow typical MF loan cycle: 3 mos – 1 year Interest rate of 2 – 5% per month (diminishing balance) Up to Php50,000 (limit of microfinance loans is Php 300,000)
20% retaining balance Tenure Issue: should own the lot or an awardee of a housing project Only for client-beneficiary who have a good track record with KDCI Rebate system NHA Tie-up
Credit for Rehabilitation from Disaster + Agricultural Credit + Safe Water Supply and Sanitation Remittance and Mobile Banking
Business and Enterprise Development Value Chain Analysis Product Development and Packaging Market Linkaging and Distribution Training and Coaching
Microinsurance +
Life Credit life Non-life (with Private Insurers) Catastrophe (fire, flood) Funeral Services Crop and other Agricultural Needs
MFIs already work in existing resettlement communities MFI provides a reliable and sustainable infrastructure for collection and distribution of financial and social services High credit-risks of newly resettled families may be managed (time factor, familiarity, cohesion)
A graduated approach to introducing MF programs may be one way of managing risk ď‚Ą It is important to do proper targeting or matching of programs, products and services with the market segments of a resettlement community ď‚Ą
Conventional approaches in MF need to be “tweaked” to make it attractive to the newly relocated ISF and viable to the MFIs Skill and mind set of political leaders in the community may not match that required of a good center officer for MF
The “subsidy” mentality has to be reframed so as not to undermine discipline, ownership and pride A proper research for segmentation is necessary (match with package of assistance
and positive reinforcements)
Prospects for Innovation Projects: Mapping: make use of MCPI, BSP, PCFC maps Match MFs with Resettlement Communities
where they already operate and document Tie-up with LGUs and NGAs such as NHA, DILG, SHFC
MFIs to share experiences: TSPI, CARD, ASHI