Journal of Microfinance / ESR Review


This paper identifies the characteristic features of the different financial market players involved in the delivery of microcredit in the Philippines and looks into their experiences in addressing the credit demand of the small-borrower market segment, particularly the microenterprise sector. This paper argues that each group of lenders, specifically commercial banks, rural banks, credit-granting NGOs, and an apex financial institution, allocates its funds by establishing its own criteria for assessing the creditworthiness of borrowers and its own mechanisms to avoid borrower default. The delivery of microcredit takes place within an environment where the different financial market players face their own set of constraints in supplying credit to small-scale borrowers. This is made evident in the experiences of the different institutions in adopting the approaches of downgrading, upgrading, and financial linkage building.


Maria Abigail Carpio is an independent consultant and is currently pursuing doctoral studiees at the Ruhr University in Bochum, Germany. Her most recent research work covers cases of microfinance banks operating in the Phillipines, Bolivia, and Uganda.



Journal Title

Journal of Microfinance

Issue and Volume