BSP scores P41.3-M grant from AFD to promote financial inclusion

The Bangko Sentral ng Pilipinas (BSP) on Thursday said it inked a P41.3-million grant facility agreement, equivalent to 700,000 euros,  with the Agence Française de Développement (AFD) to boost financial inclusion efforts across the country.

In a virtual briefing, BSP Governor Benjamin Diokno said the grant aims to enhance the regulation and supervision of inclusive digital finance, promote digital financial literacy, and contribute to the public policy dialog on agricultural insurance.

“We welcome this maiden technical assistance program of the AFD for the BSP. This endeavor demonstrates our organizations’ shared commitment to advance financial inclusion in the country through responsible digital innovations,” he said.

“The BSP looks forward to a fruitful collaboration with AFD as we implement the program in the next five years,” he added.

The ADF will also provide technical assistance to the Rural Bankers Association of the Philippines worth 800,000 euros, to aid in the digital transformation of rural financial institutions.

The grant covers three component activities, including the support of the regulation and supervision of inclusive digital finance which will look into the creation of the central bank’s supervisory technology program.

This will delve into the study of possible applications and use of supervisory technology, as well as the development of a supervisory technology framework and implementation blueprint.

Another component is promoting financial education with focus on digital finance, which involves the design of a program to improve the literacy of rural clients, low-income women, and microentrepreneurs.

The third component is contributing to public policy dialog on agricultural insurance, which will assess the feasibility of scaling up the adoption of digital solutions across the country.

“In line with our organization’s strategic objectives to support financial systems and fight social and economic inequalities, the project that will result from this cooperation will contribute to the country's efforts to promote access to quality financial services for all, including the most vulnerable part of the population,” AFD Country Director Laurent Klein was quoted as saying in a separate statement.—AOL, GMA News