In carrying out this mandate, we have drawn up a set of banking regulations that take into consideration the peculiarities of microfinance lending: cash flow-based, typically unsecured and short-term, high frequency collections, and often featuring group guarantee and other non-traditional forms of security.
Specifically, the BSP has issued the following circulars:  BIS Review 62/2004  1  •  Circular 272 (January 2001) implements the provisions of Sections 40, 43 and 44 of the GBL and sets out the regulatory guidelines for engaging in microfinance. •  Circular 273 prescribes additional requirements for licensing of microfinance-oriented banks.