amando m tetangco, jr : microentrepreneurial success in the philippines speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the microentrepreneur of the year ( moty ) awards 2008 launch, manila, 15 may 2008. * * * fellow workers and advocates in microfinance, special guests, good morning. on behalf of the members of the monetary board, i welcome all of you to the bangko sentral ng pilipinas for the launching of the 2008 microentrepreneur of the year awards. ladies and gentlemen. this is the sixth year we are mounting this search for the best microentrepreneurs in our country. through all these years, i have felt that the role of the judges in selecting the winners have become increasingly difficult. don ’ t get me wrong ; i am not complaining! the difficulty lies in the fact that there are now so many inspiring success stories in the microfinance sector to choose from. this tells me that we are successful in providing a nurturing environment for microenterpreneurs. today is therefore a happy occasion as friends and colleagues involved in microfinance come together once again. let us therefore take this opportunity to thank our partners for making the moty a muchanticipated event. friends, let us give a big hand to citi philippines and citi foundation under mr. sanjiv vohra, the microfinance council under mr. rollie victoria and mr. ed garcia, as well as the members of the national selection committee. during the first five years of the moty, we met exceptional microentrepreneurs who proved access to responsive microfinance services can empower them to break out of poverty and build a better life for themselves, their families, and even their communities. we are happy that our past winners continue to shine and to be a source of inspiration. for instance, 2004 winner leticia rosas, a handloom weaver from marinduque, had the unique experience to address a big crowd of microfinance practitioners in the historic halls of the malacanan palace. 2006 winner jennilyn antonio, a former factory worker turned peanut butter manufacturer, now supplies sm supermarkets, the country ’ s largest retail chain. we of course thank one of our committed judges, mrs. tessie sy -

models of customer outreach, demonstrating a genuine commitment to bringing progress to rural areas. rural banks may be smaller in size compared to commercial and even thrift banks, but they have proven their mettle and invaluable contribution to countryside development through financing of rural communities. with rbap ’ s extensive network of 2, 745 banking offices nationwide, the industry is strategically positioned to be a catalyst for greater financial inclusion. your close ties and familiarity with the rural communities you serve make you effective providers of rural financing and other corollary microfinance products and services. almost 97 percent of the industry ’ s network is spread across provinces. in fact, one in every three banking offices located in davao region and in mindanao is a rural bank. however, there is much scope for expansion towards countryside development. 554 cities and municipalities, or almost a third of the total, in the country are still unbanked as of december 1 / 4 bis central bankers'speeches 2017. moreover, the 2017 global findex by the world bank showed that only 34. 5 percent of filipino adults have formal accounts, ranging from bank deposits to e - money accounts. given rbap ’ s strategic role and familiarity with rural communities, it is crucial for the industry to leverage on innovative technologies and liberalized branching rules that bsp has initiated. this will further expand market reach and enhance existing service delivery channels in the rural areas. that rural banks enjoy public trust and confidence is evident in your deposit profile. accounts maintaining less than p10, 000 make up 87. 3 percent of your retail depositors. as a conduit of rural financing, almost a third of your loans are granted to households. most of them are salary loans to the working class, with farmers and fisherfolks among the biggest recipients of rural bank loans. no less important, these are quality loans. because of this, your return on equity was solid at 9. 0 percent in 2017, when net profit stood at p3. 4 billion for the year. these strengths affirm your status as a dependable partner in helping rural communities and in building a more dynamic and inclusive financial system – a system where there is effective access to a wide range of financial products and services that are appropriate to the needs of the local communities. consistent with the government ’ s thrust under the medium - term philippine development plan ( mtpdp ) to spread economic development to the countryside, there are now more opportunities for rural banks to grow and provide the