Module 2: Oversight

Government Official for

Micro Enterprises
Last January 4, 2007, President Gloria Macapagal-
Arroyo promulgated Memorandum Order No. 238
 Which designated Secretary Cerge M. Remonde of the Office of the President as
the Oversight Official for the MSME enterprises (micro, small and medium
enterprises).
 The title of Memorandum Order No. 238 is: DESIGNATING THE OVERSIGHT
OFFICIAL FOR MICRO, SMALL AND MEDIUM ENTERPRISE (MSME)
PROGRAMS OF THE COUNTRY AND FOR OTHER PURPOSES.
• Section 1. Functions. The oversight official shall perform the following functions:
1. Convey the President’s perspective and specific instruction to implementing agencies
and ensure that these are fully complied with;
2. Identify policy gaps and implementation bottlenecks and carry out necessary
interventions to address these; and
3. Provide the President with overall assessments of MSME policy and program
performance.
• Section 2. Institutional Arrangement
• Section 3. Submission of reports
• Section 4. Separability Clause
MICROFINANCE COUNCIL OF THE
PHILIPPINES (MCPI)
• One major stakeholder in the microfinance industry of the Philippines is the
Microfinance Council of the Philippines, Inc. (MCPI). The Council was formally
registered with the Securities and Exchange Commission (SEC) in 1999.
Two (2) Types of membership in MCPI
1. Regular Members
2. Associate Members
Regular member
• Are institutions engaged in retail microfinance operations.
• Regular members are restricted to NGOs, thrift banks, development banks, rural
banks, cooperatives and credit unions.
• To qualify as a regular member, the MFI must have a minimum number of 1,000
microfinance active borrowers and savers and a loan portfolio outstanding of at
least ten (10) million pesos.
Associate member
• Are restricted to private and local organizations engaged in the wholesale of
microfinance loans, network organizations that assist, MFIs, and technical
service providers.
NATIONAL CREDIT COUNCIL (NCC)
• NCC is doing a great job for the microfinance industry. Not on the frontline but
providing vital back support to the microfinance industry.
• NCC was created by Presidential Administrative Order No. 86 promulgated on
October 8, 2003 during the time of then President Fidel Ramos.
NCC’s role:
• Rationalize
• Optimize
• Harmonize
• And consolidate the various credit programs of all government institutions.
NCC is composed of nineteen (19) members and three (3)
ex-official members from the following government
agencies:
• Department of Agriculture (Agricultural Credit Policy Council)
• Department of Agrarian Reform
• Department of Environment and Natural Resources
• Department of Finance
• Department of Trade and Industry/ Small and Medium Enterprises Development Council
• Bangko Sentral ng Pilipinas
• Land Bank of the Philippines
• Philippine National Bank
• Philippine Deposit Insurance Corporation
• Presidential Council on Countryside Development
• Presidential Commission to Fight Poverty
• Cooperative Development Authority
• Congress Planning and Budget Office
• Bankers Association of the Philippines
• Rural Bankers Association of the Philippines
• Chamber of Thrift Banks/ Development Banks Association
• BANGKOOP
• Representative, Cooperative Federation/ Association
• Representative, Social Pact Alliance
Ex-Official members:
• Government Service Insurance System
• Social Security System
• Home Development Mutual Fund/ PAG-IBIG
Land bank of the Philippines …. Its role in micro-
agri finance
• Land bank of the Philippines (LBP) is one financial institution that plays a
prominent role in the development of rural finance. Particularly in the area of
micro-agri finance.
• A special microfinance program of the LBP is the implementation of the so-called
rural household business finance (RHBF) program- a program jointly being handled
by two (2) representatives of LBP and three (3) representatives of the
Agricultural Credit Policy Council (ACPC) of the Department of Agriculture
(DA).
The names of the thirteen (13) participating rural banks
under the Rural Household Business Financing Program
(RHBF) are the following:
1. Rural Bank of Kapatagan in Lanao del Norte
2. Bukidnon Coop Bank in Bukidnon
3. Coop Bank of Misamis Oriental in Misamis Oriental
4. Rural Bank of Tampakan in South Cotabato
5. Rural Bank of Tacurong in South Cotabato
6. Rural Bank of Koronadal in South Cotabato
7. Rural Bank of Dulag in Leyte
• Coop Rural Bank of Bulacan in Bulacan
• Coop Rural Bank of Tarlac in Tarlac
• Gateway Rural Bank in Bulacan
• Pintuyan Multi-Purpose Cooperative in Southern Leyte
• Valiant Rural Bank in Iloilo
• Rural Bank of Mabitac in Laguna
Major Economic Estimated
Activity Percentage
(%) Share
1. Crop Production Projects 40
(Palay, Corn, Coconut, Sugarcane, other crops)

2. Livestock and Poultry Projects 17

3. Fishery-Related Projects 4

4. Loans for Marketing Operations 39

Total 100