The Bangko Sentral has also relaxed the rules governing derivatives activities of banks. The aim is to provide a framework where banks and trust entities could expand opportunities for financial risk management and investment diversification through prudent use of derivatives.
For instance, one of the country’s leading microfinance institutions – the Center for Agriculture and Rural Development or CARD – has formed a Mutual Benefit Association which offers micro-insurance to over 300,000 clients. This is yet another tool that minimizes vulnerabilities from poverty.