Philippines: Circular No. 273 Series of 2001

This paper lists down the criteria for establishing microfinance banks:

• Microfinance banks shall be either thrift banks or rural banks;
• Capital of these banks should be owned by:
  • Private persons,
  • Multilateral entities,
  • Combination of both;
• At least 50% of the bank's gross loan portfolio shall consist of microfinance loans;
• The capitalization requirement under existing regulations shall apply to rural and thrift banks;
• The requisite documents should be submitted for establishment of microfinance-oriented banks.

Finally Section 2, 3 & 4 of the Circular detail the following:

• Exemption of microfinance oriented banks from the general moratorium on the establishment of bank branches;
• Permission to existing microfinance organizations, applying to establish microfinance-oriented banks, to convert the existing branches into branches of the bank on fulfilling the standard requirements;
• Specifications of the qualification for the President, Chief Operating Officer, or General Manager of a rural/Thrift bank.