The SEC lending rate cap, PhilHealth fund transfer

Among the occasional issues endured by the poor is the need for emergency borrowings, small amounts like P15,000 or lower that are supposed to be paid within a few months. Now with many online apps, micro lending has "democratized" but these include some lenders who have the explicit goal to bleed dry their borrowers and victims.

- BIENVENIDO S. OPLAS JR.

I checked stories in The STAR, and I was surprised that there were many last November alone:

"SEC moves to tighten interest rate caps for lenders" (Nov. 1), "SEC warns against illegal lending on Facebook" (Nov. 4), "Tougher rules ahead for online lenders - DOF" (Nov. 6), "GCash expands livelihood opportunities with the new GCash Pera Outlet Plus, bringing financial access closer to Filipino communities" (Nov. 7), "Loan rate cap may drive Filipinos to loan sharks" (Nov. 26), "Loan rate cap risks hurting borrowers" (Nov. 30).

This is a problem of financial exclusion among ordinary Filipinos who cannot borrow from formal institutions like banks that demand various papers and requirements, as banks are also strictly monitored by the Bangko Sentral ng Pilipinas.

I checked the BSP's Financial Inclusion Steering Committee that includes many other departments and agencies of the government as members. The Annual Report 2024, "National Strategy for Financial Inclusion," has a number of interesting statistics.

One, only 56 percent of Filipino adults had a formal account in 2021, mostly with e-money. Two, reasons for not having account ownership are: 45 percent do not have enough money, 40 percent have no documentary requirements, and 22 percent do not know how it works. Three, microfinance by the banking sector is limited with only two million borrowers and P33 billion in loans while microfinance by the NGOs has 6.8 million borrowers and P80 billion in loans and microfinance by the cooperatives has 9.9 million member-depositors and P367 billion in loans.