Amendments to Microfice Client Definition

Item C on the “Characteristics of a typical microfinance client” is amended to include additional client types.
The amended client type includes “poor and low income clients” with annual family income below the national average.
The income benchmark is based on the latest available National Statistics Office (NSO) Family Income and Expenditure Survey (FIES).
The Circular provides that, in the client classification table, poor and low income clients are included as a distinct Type of client.

Poor and low income clients are defined for purposes of microinsurance products only.
Poor and low income clients refer to those with annual family income below the national average.
The national average annual family income figure is fixed at PhP 206,000 for 2009.
The benchmark is tied to the latest available NSO FIES basis stated for the client definition.

The amendment applies to the Appendix 45 (Notes on Microfinance) materials under Section X361 of the Manual of Regulations for Banks.
The included client category is specifically poor and low income clients meeting the annual family income criterion.
The client definition is used for microinsurance products when classifying “poor and low income clients.”

The Circular takes effect fifteen (15) calendar days following its publication.
Publication must be made either in the Official Gazette or in a newspaper of general circulation.
The effectivity timing is counted from the date of publication, not from issuance.