The results have been disappointing. At times, banks too have imagined that they could profit from the underdevelopment of the markets. Firms’ dependence on credit reduces their bargaining power, enabling banks to impose better terms for lending. The limited empirical evidence on this point suggests that listed firms and firms that issue bonds on capital markets pay lower interest rates.
We continue to support the national ID or PhilSys rollout. We strongly urge MFIs to take full advantage of Philsys to deliver more innovations in microfinance. With the PhilSys, MFIs can reduce onboarding costs. Unlike other IDs, the PhilSys will enable MFIs to authenticate a person’s identity online and real-time, as well as conduct seamless eKYC.