The Bangko Sentral is also expanding the products and services that rural banks can competitively provide. In 2006, through Circular 522, the BSP granted rural banks the authority to operate FCDUs. Rural banks have a distinct advantage to compete in the remittance business at the final mile by virtue of their close contact with countryside customers.
In addition, recent product approvals of the BSP such as the Micro-Agri Product and the Housing Microfinance Product provide rural banks with opportunities to expand the range of services they can provide to their clients.