In particular, we took into account the unique characteristics of microfinance such as the use of group liability arrangements, cash flow based and character lending, high frequency amortizations, and having less documentary requirements. Our policy is working as intended, as banks get more involved in microfinance. Let me share some highlights.
As of June 2016, there were 169 banks involved in microfinance – most of them rural banks in the countryside. Combined, they have more than 1.6 million microentrepreneur clients (from 391,000 in 2002) with aggregate outstanding loans of P11.7 billion, an almost five-fold increase from the levels in the early 2000s (P2.6 billion in 2002).