1 / 12

Chamber of Thrift Banks Annual Convention

Chamber of Thrift Banks Annual Convention. Presentation by: BENEL P. LAGUA President and COO Small Business Corporation Department of Trade and Industry 23 March 2012. Good News. Philippines is 75 in World Economic Forum 2011-2012 Global Competitiveness Report

malise
Download Presentation

Chamber of Thrift Banks Annual Convention

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chamber of Thrift BanksAnnual Convention Presentation by: BENEL P. LAGUA President and COO Small Business Corporation Department of Trade and Industry 23 March 2012

  2. Good News • Philippines is 75 in World Economic Forum 2011-2012 Global Competitiveness Report • 3.7% growth in 4th Q 2011, 52nd consecutive quarter of positive economic growth since 1999 • Inflation in 2011 is 4.8%, 3.3% in Jan-Feb 2012 • 7.0% unemployment rate for 2011, 7.4% in 2010 • $20.12 B Remittances in 2011, up to 7.0% over 2010 • Stock market at 5145 close on March 16, 2012

  3. Blueprint for Industry Development • Support Key Industry Winners, e.g. Electronics Manufacturing, ICT/BPO, Tourism, Agribusiness • Strengthen MSMEs in Global Market • New BPOs, New Sunrise Industries, e.g. Shipbuilding, Agribusiness such as Coco Juice

  4. Micro 91.6% (697,077) MSMEs 99.6% (758,436) Small 7.6% (58,292) RP Enterprises (761,409) Large 0.4% (2,973) Medium 0.4% (3,067) LARGE 0.4% 68% 99.6% LARGE MICRO SMALL AND MEDIUM 32% 5% MICRO SMALL AND MEDIUM Value added No. of establishments MSMEs Vital for Dispersing New Industries MSMEs: vital engine of the economy • 99.6% of total firms • 61% of employment • 32 % of value-added • 60% of all exporters 39% 0.4 % 61% 99.6% MICRO Firms Employment Source: 2008 List of Establishments, NSO

  5. MSME Development Plan Components • Business and Investment Enabling Environment • Access to Finance • Access to Markets • Productivity and Efficiency GOAL: 40% value-added; 2 million jobs by 2016

  6. SULONG Program • Php 242 billion cumulative loans by the government financial institutions (GFIs) from 2004-2011 • Planned renewal to include capacity building and addressing information asymmetry problem

  7. Microfinance is Doing Well • Financial Inclusion a major Achievement of BSP Policy Thrust • Economic Intelligence Unit named Philippines as the best in the world in regulatory framework for micro finance • BSP reports 198 banks, P7.1 billion O/B, 1 million borrowers; 23 are thrift banks • Microfinance Program Committee reports 9 million clients in MFIs • Microfinance loans up to P150,000, Microfinance Plus at P300,000 • Loan size between P2,000 and P50,000 (mostly P5,000)

  8. Mainstream SME Finance Needs Support • IFC Scoping Study in 2006 estimates unmet demand of US$ 2.5 billion • Overall compliance of banking sector with Mandatory Credit under Magna Carta for MSMEs is 7.37% for micro/small and 7.09% for medium • Bank sector loan portfolio increased by 121.7% from 2001 to 2011 • Micro/Small loan portfolio increased by 10.6% • Medium loan portfolio increased by 77.5%

  9. BSP Report on Mandatory Credit

  10. The Missing Middle As a Global Phenomenon Source: Young Global Leaders (World Economic Forum)

  11. Challenges • Risk Based Lending • Capacity Building for SME Lending Technology • Financial Literacy for SME Clients • Usage of Guarantee Facilities • Convergence of Assistance

  12. Chamber of Thrift Banks Expected as Key Contributor in the MSMED Council. Our Aim: Inclusive Growth. Thank You!!!

More Related