2011年-世界发展银行全球_Philippines_Financial_Sector_Assessment_Program_Update___Access_to_Finance_26页_1mb

Summary of the Financial Sector Assessment Program Update: Philippines - Access to Finance

Core Content

This technical note from the World Bank provides an in-depth analysis of access to financial services in the Philippines, focusing on financial inclusion, available products, institutional capacity, regulatory environment, financial infrastructure, and government policies. It concludes with recommendations to improve financial access and services for all segments of the population, particularly the poor and rural areas.

Main Findings

1. Financial Inclusion Status

• Access to formal financial services: Only 30% of Filipinos use formal financial services, which is below the East Asia region average.
• Geographic disparities: Bank branches and ATMs are concentrated in the National Capital Region (NCR), where 13% of the population resides. Poorer and more rural regions have limited access to banking services.
• Rural vs. urban use: Rural households are less likely to have bank deposits (8%) compared to urban (14%). The average value of rural deposits is P3,258, significantly lower than urban deposits (P9,667).
• Credit usage: Credit to firms is below East Asian averages, with MSMEs and agricultural borrowers facing significant challenges in obtaining credit.
• Consumer credit: Salary loans and credit cards are growing, but formal savings mechanisms remain underutilized by the majority.

2. Products and Market Segments

• Credit products:
  • MSMEs have limited access to formal credit, with only 15% of microenterprises having credit from regulated institutions.
  • Leasing is a notable product for SMEs, though its development has been limited due to regulatory and tax changes.
  • Factoring is underdeveloped, with little growth in the past few years. Reverse factoring is offered by DBP, but uptake is limited.
• Consumer credit:
  • Salary loans are popular due to low perceived risk.
  • Credit cards are increasing in use.
  • Mobile payments are expanding rapidly, though not yet at full scale.
• Agricultural credit:
  • Only 5% of agricultural borrowers have access to formal credit, with most relying on informal sources.
  • Loans are often small and short-term, not aligned with agricultural cycles.
  • Collateral limitations and land title issues hinder access to credit for farmers.

3. Institutional Potential

• Universal and commercial banks dominate the financial system, serving 65% of all clients and providing 85% of loan volume, but have limited outreach to low-income groups.
• Rural banks and cooperatives are the most accessible for low-income clients, but many are under-resourced and underperforming.
• Pawnshops and informal lenders are widely used due to low documentation requirements and fast disbursals, though they charge high interest rates.
• Non-bank financial institutions (NBFI) and microfinance institutions (MFI) are growing, but face challenges in scaling up and serving low-income clients effectively.

4. Regulatory Framework

• The BSP has a comprehensive regulatory framework for microfinance and mobile financial services.
• A centralized credit bureau system was established in 2008, but resources for its development are still insufficient.
• Moveable property registries and land title systems are lacking, which limits the availability of collateral for loans.
• Regulatory arbitrage exists as some institutions that serve low-income clients are not supervised by the BSP.

5. Government Policies and Programs

• Government intervention has increased, including direct services to the non-banked and wholesale lending to financial institutions.
• Consumer protection has a robust legal framework, with five government entities playing distinct roles.
• However, direct lending by the government may distort incentives for sustainable financial services.

Key Recommendations

• Facilitate physical access to financial services:

  • Streamline accreditation procedures for cash-in/cash-out providers.
  • Improve AML training for non-bank agents outside Manila.
  • Enhance licensing efficiency for bank branches and OBOs.

• Improve leasing law:

  • Align with international accounting standards (IAS).
  • Reduce confusion in the treatment of leasing products.

• Strengthen CDA:

  • Safeguard deposits of low-income borrowers.
  • Increase supervision and audit capacity for cooperatives.

• Expand credit information systems:

  • Establish a centralized credit bureau.
  • Develop a moveable property registry.

• Minimize direct government lending:

  • Reduce distortions in the financial market.
  • Encourage sustainable financial services.

• Establish a central consumer protection gateway:

  • Coordinate efforts among different regulatory bodies.
  • Ensure uniformity in consumer protection across financial services.

• Capacity building:

  • Focus on MIS, business development services, and product development.
  • Address bottlenecks in access to finance for SMEs and low-income groups.

Conclusion

The Philippines has made progress in financial inclusion, but significant gaps remain, particularly for low-income and rural populations. The regulatory environment is supportive, but infrastructure and institutional capacity need improvement. Consumer credit is growing, but formal savings mechanisms are underutilized. The development of credit products such as leasing and factoring is crucial for SMEs and agricultural borrowers. A centralized credit information system and better coordination among regulators are essential to enhance financial access and sustainability.