Philippines fourth in global microfinance

Microfinance is a concept especially adopted by women in poorer environments

The Philippines has been ranked fourth in the global microfinance industry in a poll conducted by the Economist Intelligence Unit (EIU) that included 55 countries.

A sound regulatory framework and low amounts of defaulting loans were cited to be among the reasons for the industry’s success in the archipelago.

“[The Philippines’] financial sector has one of the lowest non-performing loan ratios in the world,” Cristino L Panlilio, Department of Trade and Industry Undersecretary and Board of Investments Governor, told Inside Investor in September 2012.

The Philippines’ new ranking in the EIU’s “Global Microscope on the Microfinance Business Environment 2012” was a two-place jump from last year, evidence of the country’s ability to maintain rapid expansion in an industry fraught with problems and occasional controversy elsewhere in the world.

In recent years the microfinance industry has come under fire for loading up debts on already underprivileged and impoverished peoples, leading to increased issues with mental health, such as the rise in suicides seen in India.

“The last few years have presented a series of challenges and learning opportunities for the microfinance sector. During the last few decades the microfinance industry experienced substantial growth, but eventually this resulted in market saturation, a rise of non-performing loans and multiple lending across a few key markets,” the EIU said in its report.

Peru topped the EIU’s ranking for the fifth year in a row, followed by Bolivia and Pakistan.

Cambodia is at once the only newcomer in the top 10 and the only other Southeast Asian nation. Vietnam remained near the bottom due to the government’s monopoly on the industry, which has created unfavourable red tap and hindered growth.

The annual poll was created in 2007 when the industry first began to emerge as a growth strategy for developing countries.



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[caption id="attachment_4995" align="alignleft" width="186"] Microfinance is a concept especially adopted by women in poorer environments[/caption] The Philippines has been ranked fourth in the global microfinance industry in a poll conducted by the Economist Intelligence Unit (EIU) that included 55 countries. A sound regulatory framework and low amounts of defaulting loans were cited to be among the reasons for the industry’s success in the archipelago. “[The Philippines’] financial sector has one of the lowest non-performing loan ratios in the world,” Cristino L Panlilio, Department of Trade and Industry Undersecretary and Board of Investments Governor, told Inside Investor in September 2012. The...

Microfinance is a concept especially adopted by women in poorer environments

The Philippines has been ranked fourth in the global microfinance industry in a poll conducted by the Economist Intelligence Unit (EIU) that included 55 countries.

A sound regulatory framework and low amounts of defaulting loans were cited to be among the reasons for the industry’s success in the archipelago.

“[The Philippines’] financial sector has one of the lowest non-performing loan ratios in the world,” Cristino L Panlilio, Department of Trade and Industry Undersecretary and Board of Investments Governor, told Inside Investor in September 2012.

The Philippines’ new ranking in the EIU’s “Global Microscope on the Microfinance Business Environment 2012” was a two-place jump from last year, evidence of the country’s ability to maintain rapid expansion in an industry fraught with problems and occasional controversy elsewhere in the world.

In recent years the microfinance industry has come under fire for loading up debts on already underprivileged and impoverished peoples, leading to increased issues with mental health, such as the rise in suicides seen in India.

“The last few years have presented a series of challenges and learning opportunities for the microfinance sector. During the last few decades the microfinance industry experienced substantial growth, but eventually this resulted in market saturation, a rise of non-performing loans and multiple lending across a few key markets,” the EIU said in its report.

Peru topped the EIU’s ranking for the fifth year in a row, followed by Bolivia and Pakistan.

Cambodia is at once the only newcomer in the top 10 and the only other Southeast Asian nation. Vietnam remained near the bottom due to the government’s monopoly on the industry, which has created unfavourable red tap and hindered growth.

The annual poll was created in 2007 when the industry first began to emerge as a growth strategy for developing countries.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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