As our country continues to scramble for a response to the swelling pandemic, microfinance institutions have become a lifeline for entrepreneurs like farmers and fisherfolk, and will continue to play a significant role in our economy’s post-quarantine recovery. But without support, will this key industry survive the current crisis? Dr. Jaime Aristotle B. Alip explains.
THE BANKING INDUSTRY should tap the large microfinance market despite the challenges it poses as it is seen to contribute to the development of other sectors which use financial services and ultimately help boost economic growth.
WITH added funding set aside for lending to micro, small and medium enterprises, the Department of Trade and Industry (DTI) said it hopes to eliminate the need for so-called “5-6” informal lenders by 2022.