Support to Implement the Microfinance
Development Program
The Asian Development Bank approved the Microfinance
Development Program (MDP) on November 22, 2005. The MDP aims
to assist the Government of the Philippines (GOP) to further
strengthen and develop the microfinance sector through the
implementation of strategic reforms in the following areas:
(i) enhancing the enabling policy and regulatory environment
and removing regulatory impediments and policy distortions;
(ii) building viable microfinance institutions (MFIs); (iii)
strengthening regulatory and supervisory capacities of oversight
regulatory authorities; and (iv) increasing financial literacy
and consumer protection.
The MDP is supported by a complementary Technical
Assistance (TA) which will assist the Philippine government
in implementing the policy actions required. Specifically,
the TA aims to assist the GOP in developing: (i) an enabling
policy and regulatory environment for sustainable microfinance
services with greater outreach to the poor at competitive
prices; (ii) viable MFIs capable of serving the poor on a
sustained basis; and (iii) a financially literate poor who
understand the benefits of microfinance services.
National Financial Literacy
Program
To achieve the TA’s third goal, the National
Anti-Poverty Commission together with the National Credit
Council spearheaded the development of a National Financial
Literacy Program for the Poor. The Financial Literacy Program
or FLP will involve a series of capacity building activities
focused at increasing the public’s knowledge of financial
concepts, skills and attitudes and to translate this knowledge
into behaviors that result in good financial outcomes both
for the providers and users of microfinance services.
BDS Guide for MFIs
A significant component of the TA is the development
of a guide on the provision of Business Development Services
(BDS) to microfinance clients. This was done in consultation
with various MFIs, MFI clients, and BDS providers- private
institutions and government agencies. The guide will serve
as a reference to Microfinance Institutions, particularly
in identifying appropriate strategies in complementing financial
services with BDS and improving clients’ access to such
services.
Microfinance Consumer Protection
Guidebook
The consumer protection guidebook compiles in
a single source the legal, regulatory and institutional policies
on consumer protection related to microfinance. It provides
microfinance clients, microfinance institutions, practitioners
and regulators relevant information that will help them make
informed decisions in pursuing not only the protection of
users but also the integrity of service providers and financial
stability of the microfinance sector.
Microfinance Industry Advisories
Industry Advisories on Microfinance Principles,
Provision of Microinsurance, Consumer Protection, and Business
Development Services were developed under the TA. The advisories
were distributed to microfinance stakeholders to ensure sound
and sustainable microfinance practices.
Public Access Website
A free public access website was developed to
support consumer literacy and protection. The website features
an on-line mechanism for the public to file consumer complaints
in microfinance. Various information materials on microfinance
can also be accessed through the website.
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