> Posted by Center Staff
Center for Financial Inclusion Managing Director Beth Rhyne this week is speaking on client protection at central banks in the Philippines and Malaysia.
The online magazine BusinessWorld covered her presentation on “How to Avoid an Indian-Type Microfinance Crisis in the Philippines” at the Microfinance Stakeholders Summit at the Bangko Sentral ng Pilipinas.
The summit unfolded against the backdrop of changes in the way the microfinance industry does business in the Philippines. MFIs there are poised to start utilizing an online credit information bureau, with the aim of curbing over-indebtedness connected to clients taking out multiple loans.
Among the article’s highlights:
“Ms. Rhyne, in her talk, said the absence of a credit bureau, which permitted multiple borrowings, was the major cause why India’s microfinance sector is now in a slump.”
“‘Credit bureaus are very much needed in a multiple lender environment to avoid over-indebtedness of their (microfinance institutions) clients,’ [said Rhyne].”
“Ms. Rhyne … singled out the Philippines’ sensible microfinance regulatory environment, active industry associations, product diversity and the cooperation among stakeholders as ‘assets.'”
To read the entire BusinessWorld article, click here.
Image credit: Tene