Given the zero interest rate bound, and given also that there are many economic entities exposed to balance sheet adjustments, it may be more difficult than in other circumstances for monetary easing policy to take effect through domestic economic entities. Rather, it tends to take effect through external channels, such as capital outflows and currency depreciation.
The banks have also empowered these clients to save, many of them for the first time. At present, these microentrepreneurs have accumulated savings of P 5.2 billion. In addition, the microfinance sector has become a market for microfinance products like micro-insurance and micro-housing loans. Because of the significant strides we have made together, the Philippines is considered a global leader in microfinance.