The Philippines: New MF Performance Standards

Through the efforts of the National Credit Council, Bankgo Sentral ng Pilipinas (Central Bank of the Philippines), and other stakeholders, the Philippines has developed a set of uniform performance standards applicable to all types of MFIs. This essay discusses the development and implementation of the standards.

The authors -- Joselito Almario of the National Credit Council; and Eduardo Jimenez and Pia Roman of the Bangko Sentral -- begin by summarizing the state of microfinance in the Philippines. They then discuss the process by which the performance standards were developed. After describing the standards in detail, the authors consider challenges with respect to implementation of the standards and provide recommendations for meeting these challenges and realizing the benefits of the formalization of the microfinance industry.