Following the principle of proportionality, we allowed less documentary requirements and enabled the use of group support or liability arrangements, cash flow based and character lending, and high frequency amortizations. We balanced that with demanding and timely loan review and loss provisioning. We also provided a mechanism for unregulated microfinance institutions to formalize themselves into banks.
Regulations were likewise established to leverage off technology to more efficiently and costeffectively reach out to more microenterprises across our archipelago of 7,107 islands. And in 2007, we created a full-time unit in the BSP to look into financial inclusion issues.