BSP lauds CARD Bank’s financial inclusion thrust

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has lauded CARD Bank for policies that lead to financial inclusion as it extended P4.6 billion loans and took in P4.4 billion savings of 1.5 million clients.

During the celebration of CARD Bank’s 18th anniversary and Savings Month celebration, BSP managing director for Supervision and Examination Sub-Sector III Chuchi Fonacier said the bank plays a significant role in building an inclusive financial system in the country.

Fonacier said saving money in banks is way more advantageous than keeping it at home, adding that banks protect money from theft and safeguard it from disasters and from pests or insects.

“Saving in a bank is the first step to avail other financial products such as credit and insurance,” she said, reminding the public that money in banks is insured by Philippine Deposit Insurance Corp. (PDIC).

The BSP official noted that profitability and financial inclusiveness can work together. She cited the key accomplishments of CARD Bank in terms of outreach and financial assistance.

Based from the BSP’s National Baseline Survey on Financial Inclusion, only four out of 10 Filipino adults currently have savings and 68 percent keep their savings at home and the rest in banks.

About 65 percent of those who do not save in banks cited lack of enough money as the main reason for not having a bank account.

With the help of microfinance institutions (MFIs), BSP sees positive results in terms of micro-deposit accounts.

An increase of 80 percent or two million accounts were recorded in 2014 from 1.1 million in 2012. In terms of value, the total amount of micro-deposits grew by 70 percent to P4 billion in 2014 from P2.3 billion in 2012.

“On our end, we will remain committed in promoting financial inclusion and implementing the tactical plans in the National Strategy for Financial Inclusion (NSFI), which was launched on July 1, 2015,” Fonacier emphasized highlighting CARD as a trusted partner in championing financial inclusion.

Established in 1997, CARD Bank is a microfinance-oriented rural bank and a member institution of CARD MRI, a social development organization that aims for poverty eradication in the country.