NRT 2011: Micro-deposits: Regulator's Perspective - Benefits and Challenges

MICRO‐DEPOSITSREGULATOR’SPERSPECTIVE:BENEFITS&

CHALLENGES

GERARDO A. BUTARDO Deputy Director MSME Finance Specialist Group Supervision and Examination Sector

Presenta?onOutline

• Micro‐depositsDefined

•  BenefitsofMicro‐deposits

•  Challenges

Micro‐depositsDefined

•  Circular694(Appendix45,MORB)

– savingsdepositsthatcatertotheneedsofthebasicsectors,low‐incomeclientsandthosethatareunservedorunderservedbythefinancialsystem

– appropriatelydesignedandpriced

Micro‐depositsDefined

• GeneralFeatures

– MinimumopeningandmaintainingbalanceofP100

– DormancyCharges–notapplicable

– AveragedailysavingsaccountbalanceofP15,000

BenefitsofMicro‐deposits

•  AllowedtobetransactedatMicro‐BankingOffice

• Notlimitedtomicro‐borrowers

•  Poten?altoreachunbankedpopula?on

• Micro‐depositorsasmicroinsuranceclients

Challenges

•  Cas?ngthenet

•  Designingmicro‐depositproductsthatfittheneedsoftargetclients

•  Deliveringtheproduct

THANKYOU

www.bsp.gov.ph

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