MANILA, Oct. 5 (Xinhua) -- The Asian Development Bank (ADB) on Thursday said it approved a policy-based loan of 300 million U.S. dollars to support the Philippine government in creating a stronger institutional and policy environment to help expand Filipinos' access to financial services.

The Manila-based bank said the ADB's Inclusive Finance Development Program, Subprogram 3, supports reforms to expand financial inclusion in the Philippines by improving the country's financial infrastructure, including widening the digital financing ecosystem.

"It also supports efforts to increase the capacity of financial service providers, including rural banks and nonbank financial institutions, to offer quality products and services accessible through various delivery channels," said the ADB.

According to the 2021 Global Findex Database, the number of Filipino adults holding an account with a financial institution or mobile money provider rose from 34 percent of the population in 2017 to 51 percent in 2021.

The government wants to raise the figure to 70 percent by 2024, aided by streamlined requirements with the Philippine Identification System (PhilSys), the bank said.

As of Sept. 1, 2023, the government has registered nearly 88 percent of the population under PhilSys after launching the program in 2020 amid the COVID-19 pandemic as part of efforts to widen financial inclusion in the Southeast Asian country.

"Through this loan, the ADB is expanding its partnership with the Philippines in ensuring all Filipinos will have access to financial products and services, including via digital platforms, to help improve their lives and livelihoods," said ADB Senior Financial Sector Specialist Kelly Hattel. Enditem

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