Professional Documents
Culture Documents
Paghahanda Sa Kinabukasan
The BSP’s
Financial Learning
Campaign (FLC)
I. Importance of Remittances
II. Significance of Financial Planning
III. Types of Financial Instruments
IV. Source of Financing for Business
8
1
Importance of
Remittances
Benefits of Remittances
• Promote
economic activity through higher
consumption
• Generate employment
• Increase foreign exchange supply
• Contribute to savings
• Provide additional funds for the government
Remittances can be harnessed for investments, in the
form of:
11
2
Significance of
Financial Planning
FINANCIAL PLANNING
Importance
13
Three STEPS to achieving
FINANCIAL FREEDOM
3
Invest
2
Save
1
Plan
Setting--up Family Goals
Setting
Family goals are usually centered on the following:
a. Education
b. Housing
c. Health
d. Retirement
e. Protection against unforeseen events
YOUR FINANCIAL PLAN
TIMELINE
Graduation Fund Funds for Build Dream LIFE
GOALS Retirement
for Child 1 Business House Fund
(P 50K) Undertaking (P 3 Mn.) (P 3 Mn.)
Mn.)
(P 100K)
18
April 2009 Can be used for:
Income 1. Tuition fees
Target Savings xxx 2. Housing
Expenses 3. Investments
Food 4. Business
venture
School Allowance
Electricity
Water
Transportation
Clothing
Entertainment
Others
19
3
Types of Financial
Instruments
PESO REMITTANCE
Treasury instruments
T-bills, RTBs, T-
T-notes Stock Market Retail business
Others Others
21
LOWER YIELD BUT HIGHER YIELD BUT NO
GUARANTEED RETURN GUARANTEED RETURN OF
OF PRINCIPAL PRINCIPAL
22
INVESTMENT INSTRUMENTS
RTBs TBills UITFs Mutual Variable
Funds Insurance
Who May
Buy
Individual
Institutional
Where to GSEDs GSEDs Banks •Brokers Insurance
Buy •Banks cos.
•Ins.
agents
Minimum P5,000 P100,000 P10,000 P1,000 ---
Investment
As of February 6, 2009
INVESTMENT INSTRUMENTS
RTBs TBills UITFs Mutual Insurance
Funds
Yield Fixed- Zero NAVPU NAVPS NAVPU
rate coupon
coupons
Guaranteed Yes Yes No No No
Return of
Principal
Tax Feature 20% 20% 20% --- ---
Example: 5-
5-year RTB with 5.875% coupon rate
After--tax Income:
After
*/
P8,812.50 - P1,762.50 = P7,050.00
(total income) (20% tax)
*/ Credited quarterly
RETAIL TREASURY BONDS
Quarterly Coupon:
P7,050.00 ÷ 20 = P352.50/quarter
(after--tax income)
(after (# of quarters in 5 years)
Return on Investment:
= P352.50 (proceeds per quarter) x 100
P30,000 (initial)
= 1.18% per quarter for a 5-
5-year RTB,
5.875% coupon rate
TREASURY BILLS
Selling Price
Formula:
SP = PP + [(PP) (i
(i) (h/360)]
i = (SP – PP) / PP x (360/h)
Where,
SP: selling price
PP: purchase price */
i : yield for holding period
h : holding period
*/ Calculated based on present value formula
TREASURY BILLS
Example: 91-
91-day T-
T-bill at 13% yield
Return on Investment:
Return on Investment:
Return on Investment:
Medium to
Types High Risk Low Risk
Unique Characteristics:
• Open to small savers or micro-borrowers
• Approval and disbursement of loans are fast
• Individual borrowers can avail of loans
• Grant of loans based on the borrowers’ and household’s expected project
cash flow
• Small loans ranging from as low as P2,000-P5,000 to a maximum of
P150,000 (collateral-free)
• Unsecured and short-term loans
SNAPSHOT OF MICROFINANCE IN THE BANKING SECTOR
(As of 31 December 2008)
40
CREDIT SURETY FUND PROGRAM
41
CREDIT SURETY FUND PROGRAM
• Granting of Loans:
- Managed and administered at the provincial level to be more responsive to the
credit needs of the MSMEs in each province.
- Loans to be approved by the CSF Oversight Committee
- Loanable amount: depends on the evaluated project loan proposal
- Interest rate: 8-12% per annum
- Additional fee: guarantee fee of 2-5% of the loan
- In case of borrower default, CSF will cover the debt while cooperatives will run
after their members.
- Banks that extend loans secured by the CSF can rediscount up to 80% of
such loans with the BSP.
42
CREDIT SURETY FUND PROGRAM
• Participating Banks:
- Allied Bank
- United Coconut Planters Bank
- Land Bank of the Philippines
- Development Bank of the Philippines
- BPI Family Bank
- Rural and cooperative banks with rediscounting line with the BSP
43
CREDIT SURETY FUND PROGRAM
TIPIRIN, PALAGUIN AT
PAGYAMANIN,
PARA MAGANDA
KINABUKASAN NATIN !
46
Website: www.bsp.gov.ph
E-mail: bspmail@bsp.gov.ph
Audio Visual Presentation
Entrepinoy
Remittance & Investment
Protection Tips
Dottie M. Bernas
Bank Officer III
Bangko Sentral ng Pilipinas
Open Forum
Rosabel B. Guerrero
Deputy Director
Bangko Sentral ng Pilipinas
Closing Remarks
Juanita D. Amatong
Monetary Board Member
Bangko Sentral ng Pilipinas
Thank You