BSP- History of Microcredit Flashcards
(also known as microfinance loans) are small loans granted to the poor and low-income households for their microenterprise and small businesses to enable them to raise their income levels and improve their living standards.
Microcredit
is the provision of a wide range of financial services to the poor and low income people. Other microfinance products include loans, deposits, transfers or payments or microinsurance
Microfinance
Traditionally, banks and commercial financial institutions are not inclined to extend loans to the poor and low-income population due to lack of information to their _______
a. collateral and credit history
b. asset and savings history
collateral and credit history
opens the door to those who do not have access or are inadequately served by the formal financial sector
Microcredit
It is believed that microcredit has been around for centuries. However, the birth of ‘modern’ microcredit is said to have occurred in rural _____ when Dr. Muhammad Yunus began the Grameen Bank in 1976. Since then, microcredit has rapidly gained widespread acceptance in many other countries.
a. Bangladesh
b. Uganda
Bangladesh
aims to deliver financial services to the low-income, unserved population while addressing the challenges of an earlier generation of directed credit and guarantee programs. Instead, it emphasizes market-based approach on the delivery of microfinance services by the private sector in a viable and sustainable manner.
a. microcredit
b. microfinance
microcredit
role is to provide an enabling policy and regulatory environment for the markets to function efficiently.
a. government
b. MFIs
government
Identify the period
- The government, through its directed credit programs (DCPs), provided highly subsidized credit to the rural poor.
- These programs had limited success and were unsustainable.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
a. 1970s to mid-1980s
Identify the period
- Credit players did not reach intended markets, repayment was poor and was very costly for the government.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
a. 1970s to mid-1980s
Identify the period
- The Philippines was among the first group of countries to replicate Grameen banking on a large scale.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
b. Late 1980s
Identify the period
- Legitimate non-government organizations (NGOs) implemented microfinance programs through the Grameen Bank Approach Replication Project.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
Late 1980s
Identify the period
- Government policies were reformed to encourage greater private sector participation in the delivery of credit.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
c. 1990s
Identify the period
- The National Credit Council (NCC), crafted in 1997, the National Strategy for Microfinance, which reinforces the government’s market-oriented credit policy.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
c. 1990s
Identify the period
- The BSP was mandated by the General Banking Law to recognize microfinance as a legitimate banking activity and to set the rules and regulations for its practice within the banking sector.
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
d. 2000s
Identify the period
- Other forms of microcredit such as housing microfinance loans, micro-agri loans and microfinance plus for growing microentrepreneurs, and other types of microfinance products such as microdeposit and microinsurance were developed
a. 1970s to mid-1980s
b. Late 1980s
c. 1990s
d. 2000s
e. At present
d. 2000s
