Philippine Star - The Bangko Sentral ng Pilipinas (BSP) will soon allow all banks to provide microfinancing to the agriculture sector as part of efforts to spur lending in the countryside, BSP Governor Amando Tetangco Jr. said over the weekend.
This as the BSP is expanding the existing program with the Rural Bankers Association of the Philippines (RBAP) dubbed as the Microenterprise Access to Banking Services (RBAP-MABS).
The policy-making Monetary Board approved last week the expansion of the credit program to include all other banks, mostly rural banks that were not part of the previous program.
“It was a limited program but now it will be open to all,” Tetangco told reporters.
Under the program, banks will provide small agricultural farmers these microfinance loans or the so-called high-frequency loans because of the frequent payment schemes. Loan amortization can be as frequent as weekly or monthly.
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