Our Members
5 Speed Rural Bank, Inc.
Banco Makiling (A Rural Bank)
Banco ng Masa
Batangas Rural Bank for Coop., Inc.
Bolbok Rural Bank, Inc.
Classic Rural Bank, Inc.
Limcoma Rural Bank, Inc.
Lipa Bank, Inc. ( A Rural Bank)
Malarayat Rural Bank, Inc.
Mount Carmel Rural Bank
New Rural Bank of Agoncillo, Inc.
Progressive Rural Bank, Inc.
Rural Bank of Alitagtag, Inc.
Rural Bank of Calaca, Inc.
Rural Bank of Cuenca, Inc.
Rural Bank of Lipa
Rural Bank of Lemery, Inc.
Rural Bank of Padre Garcia, Inc. 
Rural Bank of San Luis, Inc.
Rural Bank of Taal, Inc.
Rural Bank of Talisay, Inc.
Sunrise Rural Bank, Inc. 
Summit Rural Bank of Lipa City, Inc.
Utility Bank
 
BULLETINS
 
PHL lenders post double-digit asset growth
22 Oct 2013
Written by Bianca Cuaresma

The country’s various lenders double-digit asset growth in the first eight months totaling P9.28 trillion, latest data from the Bangko Sentral ng Pilipinas (BSP) show.

This was some P1.59 trillion or 20.71 percent higher than total resources last year of only P7.685 trillion.

The growth in resources was also faster than the 19.6-percent growth posted in July this year. About P38.1 billion was added to the Philippine banking system’s total resources from July to August this year. The banks’ assets in July stood at P9.24 trillion.

Universal and commercial banks, which comprise about 72.3 percent of total bank resources in the country, was the primary driver in the rise in resources during the period. At end-August this year, resources of universal and commercial banks totaled P8.32 trillion, about 20.88 percent or P1.44 trillion higher than last year when this totaled P6.89 trillion. This was also about P35 billion higher than the P8.28 trillion posted the previous month.

Thrift banks, which own around 6.6 percent of the total resources of Philippine banks, also posted double-digit growth in the first eight months of the year. From the P609.8 billion seen in January to August last year, thrift banks’ resources grew by about 25.25 percent, or about P154 billion, to reach P763.8 billion in the January to August this year. From July to August, thrift bank resources grew larger by 3.1 billion from the P760.7 billion in July this year.

The August data on the resources of rural banks has not yet been made official available by the BSP. The latest data for rural banks show assets at P190.1 billion as of end-September last year.

The resources of non-banks as of August this year is also not yet available. As of March this year, total resources of non-bank financial institutions stood at P2.231 trillion. These brought the August total resources of the Philippine financial system to P11.51 trillion, about P1.716 trillion or 17.55 percent higher from the same period last year.
_______________________________________________________________________________________
Soured loans held by small domestic banks grew by 10%

Soured loans held by small domestic banks grew by 10 percent in the first quarter amid aggressive lending activities, based data released by the central bank. In a statement, the Bangko Sentral ng Pilipinas (BSP) said the provisions of thrift, rural and cooperative banks for these nonperforming loans (NPL) also rose as they sought to cover possible losses that might affect the welfare of their depositors.

The combined nonperforming loans (NPLs) of thrift, rural and cooperative banks represented 7.77 percent of their total loan portfolio of P568.71 billion at the end of the first quarter this year.

The BSP attributed the increase in the industry’s NPL ratio this year from 7.61 percent last year to the 10.3-percent year-on-year rise in soured loans vis-à-vis the 8-percent increase in loan portfolio in the same period.

The banks’ loan loss reserves for bad loans, meanwhile, stood at 66.52 percent of NPLs in March, up from the 64.60 percent a year ago.

“Provisioning for NPLs is a prudential measure for mitigating potential credit losses,” the BSP said.

The risk of small banks’ level of bad loans undermining the health of the country’s financial system was downplayed by the central bank, saying that thrift banks made up only 10.47 percent of the total industry. Rural and cooperative banks, meanwhile, were just 2.89 percent and 0.20 percent, respectively, of the Philippine banking system’s total loan portfolio in March this year.

NPLs of universal and commercial banks, which dominate the country’s banking system, eased to 2.68 percent of their loan portfolio from 2.75 percent in March and 3.01 percent in June of 2012.

The BSP said local banks were able to resist the temptation of relaxing their standards and lend excessively to the public to increase profits. It said bank lending standards remained high despite the ample liquidity in the system.

The rise in NPLs was attributed to rural and cooperative banks, which saw bad loans reach 13.26 percent and 14.22 percent of their respective loan portfolios.

Thrift banks saw their NPLs ease to 6.13 percent of their loan portfolio as of the end of March, from 6.48 percent a year ago. This was matched by a slight rise in the thrift banks’ loan loss reserves to 70.43 in March from 69.64 percent a year ago.
_______________________________________________________________________________________
AUB's rural bank unit to acquire Pampanga bank
ABS-CBNnews.com
Posted at 10/04/2013 3:17 PM | Updated as of 10/04/2013 3:17 PM

MANILA, Philippines - The Monetary Board has approved in principle Asia United Bank's rural bank subsidiary's acquisition of a Pampanga bank.

In a statement, AUB said its subsidiary Rural Bank of Angeles is acquiring the banking business of the Cooperative Bank of Pampanga (CBP).

CBP has 204 member cooperatives in various locations, including Pampanga, Cabanatuan and Davao. As of end-2012, it had total assets of P290.8 million and has seven branches -- San Fernando, Apalit, Sta. Ana, Angeles, Floridablanca, Lubao and Mabalacat.

"CBP presents a unique opportunity and will allow RBA to expand its presence and footprint in Pampanga... With the resources and integration experience of RBA and its parent, AUB, we are confident of recapitalizing and revitalizing the business of CBP," said bank president Ronald Joseph Fernandez.

"While preparation for the completion of the acquisition is ongoing, AUB is prepared to advance additional new capital to CBP to ensure the servicing of CBP's liabilities and its stable and continued operation," he added.

Since AUB acquired Angeles City-based RBA in July 2009, the rural bank has already returned to profitability and currently has 11 branches and other banking offices in Pampanga and Tarlac. RBA now has total assets of Php416.1 million and a net income of Php10.9 million as of December 31,2012.The acquisitions of CBP and RBA, in addition to Asiatrust Develop.
_______________________________________________________________________________________
BSP lifting cap on bank lending facility

“The BSP’s peso rediscounting window will turn into an open-volume facility effective Nov. 15 this year, meaning requests of banks to the facility will be granted regardless of amount subject to compliance with pre-determined eligibility requirements,” BSP Governor Amando M. Tetangco, Jr. told reporters via e-mail on Monday night.

In a text message on Monday, BSP Deputy Governor Diwa C. Guinigundo explained that the move will “remove the P20-billion budget that the central bank has set aside for the peso rediscounting facility… for universal and commercial banks.”

The rediscount facility is a refinancing window from which banks borrow money using promissory notes and other loan papers of its borrowers as collateral, according to the central bank.

The central bank announced in August that it is restructuring the peso rediscounting facility to “align it further with the BSP’s market-based monetary operations framework and with international central banking practice of scaling down directed credit operations… as it remains committed to providing the appropriate level of liquidity to the banking system to ensure sustained funding for the country’s growth requirements to the extent that the inflation outlook will allow.”

BSP also said that by next month there will be two separate rediscounting windows. Rediscounting Window I will be for universal and commercial banks, while Rediscounting Window II will be for thrift, cooperative and rural banks.

With the absence of a ceiling, Mr. Guinigundo said the amount banks can borrow from the facility will depend on their capital, assets, management, earnings, liquidity, and sensitivity (CAMELS) rating, which measures a bank’s financial health and ability to pay obligations.

“There is a scoring system based on the banks net worth and compliance with CAMELS rating,” he said.

Loan rates for universal and commercial banks are pegged at BSP’s lending rate of 5.5%, while that for thrift, rural and cooperative banks is set at BSP’s 3.5% borrowing rate. As of September, banks had availed of P17.32 billion in loans from BSP’s rediscount facility, lower than the P32.761 billion recorded in the same period last year. -- A. R. R. Gregorio
_______________________________________________________________________________________
World Bank Group President: No More Business as Usual
October 11, 2013

Kim announces changes to align staff, finances and priorities to meet strategic goals
WASHINGTON, October 11, 2013—World Bank Group President Jim Yong Kim today announced a set of sweeping changes to align the staff, finances, and priorities of the global institution to meet the twin goals of ending extreme poverty by 2030 and boosting shared prosperity for the bottom 40 percent of the population in developing countries.

Addressing representatives of the Bank Group’s 188 member countries at the plenary of the World Bank/International Monetary Fund Annual Meetings, Kim noted that for too long, the organization had not followed its own advice and had avoided tough choices.

“That’s changing. We are taking our own medicine. We will show much more financial discipline than we have in the past in order to become more efficient and identify new ways to reduce spending. Just as we tell finance ministers, we also need to plan for the longer term, shoring up our revenue base, seeking ways to save, and building a stronger foundation for years to come,” said Kim.

Kim praised the hard work of Bank Group staff and said he wanted to create a structure that brings out the best of their talents and expertise.

“We can’t revert to business as usual. When I started my tenure at the World Bank Group some 16 months ago, I discovered a staff with a tremendous depth of knowledge and experience. I also found a staff frustrated with the institution. Many wanted their work to have greater impact. They chafed at a bureaucracy that had turned our six regional units into silos, with each one reluctant to share its technical expertise with the others.”

Over the next three years, the World Bank will find at least a $400 million reduction in annual administrative costs, said Kim. These savings will directly benefit clients, as the organization will work to reinvest these resources toward new financing.
Kim noted that in addition to savings, the Bank Group needed to reform the way it designs its budget, to align budgets with strategy, to selectively invest in the future, and to aggressively explore new ways to grow revenue to better serve our clients.

“If we have high aspirations for the poor, if our work is to be aligned with our goals, we must be as efficient and focused as possible,” said Kim.

Kim illustrated the importance of ending extreme poverty with a recent World Bank report which found that of those in poverty, one in three is a child.

“For all the people living in extreme poverty, 400 million are children. What more motivation do we need to accelerate progress toward the goal of ending extreme poverty by 2030? How can we in good conscience not do all we can to lift 400 million children, their families, and hundreds of millions of others out of poverty and into a life of opportunity?’’
To make the poverty goal more urgent, Kim hailed the Bank’s new interim goal of cutting extreme poverty roughly in half by 2020, from its rate of 18 percent in 2010 to 9 percent in 2020. “If we are going to be on the path of reaching 3 percent of population living in extreme poverty by 2030, we must get to 9 percent by 2020,” said Kim.

In addition, Kim announced a new initiative to provide universal financial access to all working-age adults by 2020.
“Globally, 2.5 billion adults have no mechanisms to save money, let alone pay bills through a transactional account or through a mobile phone. We believe we can chart a path toward universal financial access by bringing together multiple approaches and technologies. This is exactly the type of ambitious project that can help lift many people, especially women, out of poverty.”

Kim called for a new approach to measuring whether Bank-financed projects are successful and said he was creating a “Presidential Delivery Unit” to focus on the Bank Group’s performance as an institution and to share data and lessons across the institution and with the rest of the world.

Kim described three aspects of the Bank Group’s work in which the new delivery unit will measure outcomes:
• “First, we know we must decrease administrative barriers. We promise to reduce transaction times by a third from conception of a project to first disbursement of funds.

• Second, we must become a better listener. Last year, we had beneficiary feedback on 34 percent of our projects. We promise that for our projects with clear beneficiaries, we will get feedback – from every single one of them, 100 percent.

• Third, we know that our partners and clients need to know where we work in order to better coordinate all of our collective resources. We promise to add rich details to our maps so that anyone will be able to go online, click on maps, and immediately learn where we are working and what we are doing.”

Kim told assembled member countries that the Bank was recommitting itself to work in fragile and conflict-affected states, with significant increases in financing in the next three years. However, Kim noted that having transformational impact in these fragile states depended upon donor support for the International Development Association (IDA), the World Bank’s fund for the poorest, which is seeking a replenishment of resources in 2013.

“We need a strong IDA replenishment this year. It will help create more jobs, increase educational opportunities for girls, and address climate change risks,” said Kim.

Kim concluded with a unifying call for the international community to demonstrate its commitment to the world’s poorest:
“Our purpose is clear, our voice unwavering. No one should live in the abysmal conditions of extreme poverty, living on a dollar or two a day. Extreme poverty in our world is morally reprehensible, and more painful to witness with each passing day. We must urgently lift a billion people from extreme poverty, help them to regain dignity, help them find hope, and help them change their own lives -- and the whole world’s future -- for the better.”
_______________________________________________________________________________________
Bangko Sentral OKs merger of 6 co-op banks
Philippine Daily Inquirer
2:40 am | Thursday, October 10th, 2013

The central bank has approved the merger of six small banks into one stronger bank that would have a branch network in Luzon, Visayas and Mindanao.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said the consolidation of six cooperative banks was approved under the regulator’s Strengthening Program for Cooperative Banks (SPCB), which extends incentives to merging banks.

The six banks were Cooperative Bank of Agusan del Sur, Capiz Settlers Cooperative Rural Bank, Cooperative Bank of Camarines Norte, Cooperative Bank of Leyte, Sorsogon Provincial Cooperative Bank and Southern Leyte Cooperative Bank.

In addition, the National Confederation of Cooperatives said it would infuse fresh capital into the merged bank, which would be named Network Consolidated Cooperative Bank (NCCB).

“This major event heralds the acceleration of the consolidation of the cooperative banking industry, aimed at contributing further to the health and soundness of the entire banking system,” the BSP said in a statement.

“Ultimately, this should redound to the benefit of the various stakeholders, including the public,” the regulator said.
The SPCB is an incentive program conceptualized by the BSP, Philippine Deposit Insurance Corp. (PDIC) and Land Bank of the Philippines. The program seeks to encourage mergers and acquisitions in the industry to strengthen the cooperative banking sector.

Incentives include leeway on certain regulations and financial assistance for eligible banks.

“This program is in recognition of the cooperative banks’ role in providing essential financial services in the economy, particularly in providing adequate banking services in local communities and in supporting growth of rural economies,” the BSP said.—Paolo G. Montecillo
_______________________________________________________________________________________
T-bills down to lowest level
By Zinnia B. Dela Peña (The Philippine Star) | Updated October 8, 2013 - 12:00am

MANILA, Philippines - Treasury bill (T-bill) rates declined to their lowest level yesterday as investors took sanctuary in government securities amid deepening uncertainties in the US as well as excess liquidity in the domestic market.
The government raised a total of P20 billion with investors offering a total of P108.66 billion.

The 91-day T-bill yield tumbled to an all-time low of .001 percent, almost reaching zero percent as investors swamped yesterday’s auction. This was a significant decline from the .866 percent set in the previous auction.

Tenders for the the three-month bills reached P38.59 billion or more than nine times the P4 billion on offer.

The interest rate on the 182-day paper plunged 83 basis points to an average of .09 percent. Bids for the six-month bills amounted to P35.46 billion or nearly six times the P6 billion available.

The yield on the the 365-day papers declined by 76.5 basis points to .955. The government accepted P10 billion out of the P34.61 billion worth of bids received.

Deputy Treasury Eduardo Mendiola attributed the overwhelming demand to the crisis hounding the US government now. “Markets are shifting to short-term instruments and selling longer tenor securities partly due to what’s happening in the US,” he said.

Mendiola said the upgrade by Moody’s of the Philippines’ credit rating to investment grade has also buoyed market sentiment.

He, nevertheless, believes that the US will bounce back and fix its house in order. “The US is a big economy and democracy is working well. Don’t think the US will allow itself to default on its debt,” Mendiola said.

Despite enormous liquidity in the financial system, the government is sticking to its P120 billion borrowing program for the fourth quarter this year. The borrowing is composed of P40 billion worth of T-bills and P80 billion worth of T-bond.

The Treasury will offer P20 billion worth of 20-year retail treasury bonds (RTBs) in October, P30 billion worth of 7-year RTBs in November, and another P30 billion worth of RTBs in December.
_______________________________________________________________________________________
Channeling funds to housing development in the countryside  
Posted: 03 Oct 2013 06:03 PM PDT

Shelter is one of the basic requirements of human needs. For an ordinary Filipino, owning a house provides a sense of economic security and dignity in the society. In the rural areas, particularly agricultural workers, low-income earners and even some families of Overseas Filipino Workers, owning a house would give them some sort of ‘pride’ seeing their little hard-earned money invested in something that appreciates in value over time.

However, it is a given fact that owning a house is costly. An average house of about 100 sq. m. goes for a total contract price of around P5 million, including land. Apart from owning, even some home improvements would also involve certain expenses. Several contractors might quote P20,000 per sq. m. to include labor and materials from plan to turnover of a house. An average house would cost around P12,000 per sq. m. using materials of lesser quality.

With this scenario, a typical Filipino residing in a rural area and earns a little might perceive the opportunity of owning or improving a home bleak. This is where housing loans step in.

While bigger banks offer concrete housing loans, not all low-income earners can access these services as they were often for people who already have a steady source of income. Rural banks, on the other hand, extend housing microfinance that offers small, incremental loans that fit with the way poor people build or improve houses, progressively over time. This emanated from the Bangko Sentral ng Pilipinas (BSP) Circular 678 or the Micro-Housing Loan.

Apart from the support rural banks receive from the regulators, government-controlled corporations such as Home Guaranty Corporation (HGC) made it possible for an improved housing loan system for underprivileged Filipinos, giving them more opportunities to finance their own homes. The HGC, which is under the supervision of the Housing and Urban Development Coordinating Council (HUDCC) and chaired by Vice President Jejomar C. Binay, supports homeownership among Filipinos by uplifting financial institutions to lend to individual homebuyers and housing developers.

The HGC, through its two latest programs – the Guaranty Program to the Countryside through Rural Banks and the Guaranty Program for Microfinance and Small Loans for Home Improvement – extends guaranty lines to financial institutions and secures investments for home-lending programs with the goal of encouraging financial institutions (such as rural banks) to lend more for housing.

Under HGC Guaranty Programs, the government guarantees the payment of HGC’s obligations. The same is likewise beneficial for both the banks and the borrowers as the latter could avail up to 90% of the appraisal value of collateral property while the former are exempted from the BSP capital reserve requirement for HGC guaranteed loans. It also freed-up banks from administrative burden if a loan evades.

The expansion of HGC guaranty programs to the countryside is an ongoing initiative that started in 2011. Orientations and briefings about the HGC guaranty were conducted to rural banks in different parts of the country. By the end of 2012, HGC was able to reach 237 rural banks form 15 provincial federations in 9 regions, namely: National Capital Region, Regions I-IVA, Region V, Regions VII-VIII and Region XIII.

From this extensive marketing campaign, rural bank clients increased from two in 2011 in 12 in 2012 and 18 in 2013. Seven of these rural banks are actively enrolling, while the rest are in the process of consolidating their accounts for enrollment.
Recently, HGC and the Rural Bankers Association of the Philippines (RBAP) had a Partnership Ceremony held last September 26 at the Coconut Palace in Roxas Boulevard, Manila. Certificate of Partnerships were awarded to 17 partner rural banks, which include: 1st Macro Bank, AMA Rural Bank, Banco Alabang, Bank of Makati, Cantilan Bank, Inc., Lipa Rural Bank, Inc., Mount Carmel Rural Bank, Inc., Rang-ay Bank, Rural Bank of Cauayan, Rural Bank of Guinobatan, Rural Bank of Mabitac (Laguna), Inc., Rural Bank of Pagbilao, Rural bank of Porac (Pampanga), Inc., Rural Bank of Rosario (La Union), Rural Bank of San Jose (Camarines Sur), Inc., Rural Bank of Tanza (Cavite), Inc., and Zambales Rural Bank.

From hence, rural banks may grant a housing loan system with a more adequate and appropriate risk management measure in which, people among rural communities can conveniently access without taking financial risk on their part.
_______________________________________________________________________________________
BIR Reply Re: Printing Costs of Unused Existing Official Receipts to be Expensed in Monthly Installments 
Posted: 06 Oct 2013 06:47 PM PDT
August 15, 2013

MR. VITTORIO Z. ALMARIO
President
Rural Bankers Association of the Philippines
Intramuros, Manila

Dear Mr. Almario:
This refers to your letter dated July 23, 2013 as endorsed by Hon. Cesar Purisima and received by our office on August 13, 2013 regarding your request that the cost of all unused existing official receipts duly printed in accordance with BIR regulations and secured with proper Authority To Print be expensed in monthly installments commensurate to the monthly usage of the new official receipts.

If the printing cost of these unused official receipts were already taken up as expense in your previous financial statements, granting your request will result to double claim of deductions. However, if these costs were taken up initially as part of current assets, then your request is taken favorably.

Please be informed of RMC No. 54-2013 whereby all Principal and Supplementary Receipts/Invoices with ATP dated January 1, 2011 to January 17, 2013 may be used until October 31, 2013 provided that new ATP was issued on or before August 30, 2013. However, application for new ATP filed after April 30, 2013 is deemed to have been filed out of time and subject to a penalty of One Thousand Pesos (P1,000) pursuant to Section 264 of the Tax Code, as amended.

For your information.
Very truly yours,
(Sgd) NELSON M. ASPE
Deputy Commissioner
To download a copy of this letter, please click on this link: BIR Reply Re: Official Receipts
_______________________________________________________________________________________
ANNOUNCEMENT: Nomination for MVP Bossing Awards
Posted: 06 Oct 2013 07:01 PM PDT

Dear Rural Bankers,

The PLDT SME-Nation, in partnership with Go Negosyo, once again seeks to recognize the country’s leading entrepreneurs in this year’s search for the new Champions of Filipino Values in Business.

They are looking for fine Filipinos who continuously work hard by tapping skill, talent and technology in order to succeed in their respective business ventures. The contest is open to owners of Small and Medium Enterprises and homegrown Filipino businesses that have been in operation for at least 5 years.

If your “Bossing” is an inspiration to others, if his/her business exemplifies exceptional creativity and perseverance, then make his/her story part of SME history. Nominate him/her by filling out the nomination form, which can be downloaded here: MVP Bossing Awards Nomination form

Together with the nomination form, kindly attached the following documents:
1. DTI Business Permit/SEC Registration (photocopy of the cover page only)
2. Proof of current PLDT Business Subscription (ex. billing statement for one month of one account)
3. Essay answering the questions above.

Kindly submit completed application forms thru email at mvpbossingawards@pldt.com.ph, at Go Negosyo offices or PLDT SME Nation Offices. You may likewise submit the nomination forms thru your PLDT SME Nation Account Officers.
Thank you.
_______________________________________________________________________________________
Special Learning Session with the Calabarzon Governors‏
 
  Download Membership Form
_______________________________________________________________________________________
Philippines Achieves Investment Grade Credit Rating with Positive Outlook from Moody’s

Manila, 3 October 2013 – The Philippines today achieved an investment grade rating from international credit rating agency Moody’s Investor Service. In a statement released by the agency, the sovereign rating of the Government of the Philippines was upgraded from ‘Ba1’ to ‘Baa3’ with a positive outlook. This upgrade by Moody’s follows the Philippine sovereign’s investment grade rating from Fitch in March and from Standard and Poor’s (S&P) in May. Both Fitch and S&P assign a stable outlook to the Philippines’ investment grade rating.

Receiving news of the announcement, Governor Amando M. Tetangco, Jr. of the Bangko Sentral ng Pilipinas (BSP) thanks the credit rating agency for the upgrade. “The BSP is pleased that Moody's has recognized the country's strong prospects and potentials as evident in the investment grade rating and positive outlook that it assigned to the Philippines. This is an affirmation of the steady and responsible macroeconomic stewardship and purposeful structural reform agenda of the Philippines.”

The Governor continues, “Clearly, Moody's has acknowledged the strong upside potentials and the constructive dynamics of the economy that should enable it to ride out the volatilities in global financial markets.”
He adds “This development should bode well for more investments, both local and foreign, in the country. Greater investments should strengthen the base for sustained and inclusive economic growth and usher in a transformative period for the Philippine economy.”

Reiterating the commitment to focus on macroeconomic stability, the Governor concludes, “The BSP shall continue to be attentive to challenges and risks in the operating environment. We will continue to ensure that the economy's resilience and flexibility are safeguarded through prudent monetary and financial policies.”
In its rationale, Moody’s cited the following key drivers for the upgrade: robust economic performance; ongoing fiscal and debt consolidation; and political stability and improved governance. In addition to the 7.6% GDP expansion in the first half of 2013, Moody’s highlighted the stability of the Philippines' funding conditions in the face of recent market volatility in emerging markets as evidence of the country’s resilience to external factors.
Also cited were the low and stable inflation levels as well as the liquidity of the banking system—the only system worldwide deemed by Moody's to have a positive outlook. The credit agency also highlighted the Aquino Administration’s popularity and success in institutionalizing its reform agenda. The positive outlook comes off the back of expectations of continued economic outperformance of the Philippines as compared to its peers in the region as well its continued prospects for reform in the second half of President Aquino’s term in office.

The Philippine Government acknowledges the support of its credit ratings advisors from Goldman Sachs’ Credit Risk Management and Advisory Group, in particular Jacob Young (Executive Director), Francisco Mejia (Executive Director), and Aaron Collett (Analyst).
_______________________________________________________________________________________
Nine rural banks awarded as ‘outstanding partner CFI’ of LBP
Posted: 01 Oct 2013 06:49 PM PDT

The Rural Bankers Association of the Philippines (RBAP) congratulates the nine rural banks recently awarded by the Land Bank of the Philippines (LBP) as an ‘outstanding partner countryside financial institution (CFIs).’
On its 15th year, the LBP recognize CFIs serving as models of excellence in rural financial services and in promoting inclusive growth to improve the economy.

Receiving the award are the following rural banks:

One Network Bank
Golden Award
1. One Network Bank, Inc (Davao City) – Hall of Fame Golden Award and cash prize of P500T.

Rural Bank of Goa, Inc.
National Award, 1st Place
Best CFI Availer-Microfinance Loan
2. Rural Bank of Goa, Inc. (Camarines Sur) – Most Outstanding CFI in National Category and a cash prize of P300T

Gateway Rural Bank, Inc.
National Award, 2nd Place
Best CFI Availer-All Loans
3. Gateway Rural Bank, Inc. (Bulacan) – Second Place and a cash prize of P200T

Rural Bank of San Jose, Inc.
National Award, 3rd Place
4. Rural Bank of San Jose, Inc. (Camarines Sur) – Third Place and a cash prize of P150T

Cantilan Bank (A Rural Bank), Inc..
National Winner, 5th Place

Rural Bank of Cauayan, Inc.
National Winner, 4th Place
Best CFI Availer, Agri-Agra Loans
5. Rural Bank of Cauayan, Inc. (Isabela) and Cantilan Rural Bank (Surigao del Sur)
- Landed in fourth and fifth place with P100T and P75T cash prize, respectively.

The LBP also gave citations and a cash prize of P75T to the most outstanding rural banks in three political regions: Rang-ay Bank, Inc. (A Rural Bank) from Region 1; Bangko Kabayan (A Rural Bank), Inc. from Region 4-A; and, Rural Bank of Digos, Inc. from Region 11.

Special awards and cash prizes of P100T each were also given to the following CFls: Rang-ay Bank, Inc. as Best CFI Intermediary (with lowest pass-on rate to end borrowers); Rural Bank of Cauayan, Inc. as Best CFI Availer – Agri/Agra Loans; Rural Bank of Goa, Inc. as Best CFI Availer – Microfinance Loans and Gateway Rural Bank, Inc. as Best CFI Availer – All Loans.
_______________________________________________________________________________________
ANNOUNCEMENT: RBAP 56th Annual Symposium
Posted: 27 Sep 2013 12:57 AM PDT

WHAT: 56TH ANNUAL SYMPOSIUM
WHEN: November 11-12, 2013 (Monday & Tuesday)
WHERE: Polkabal – Rigodon Hall, Manila Hotel.

For the meantime, rural bankers who are willing to advertise in any of the souvenir material for the upcoming symposium are advised to contact Ms. Shalie Y. Recaido, Administrative Officer for particulars at (02) 527-2972 or (02) 527-2968 or through email at: recaidoshalie@yahoo.com.

The RBAP Secretariat will provide updates here as soon as any additional information becomes available.

Thank you for bearing with us.
_______________________________________________________________________________________
MVSM Bank Celebrates 60th Anniversary
Posted: 27 Sep 2013 12:17 AM PDT

MVSM Bank celebrated its 60th anniversary last July 24, 2013 at the iconic Capitan Moys in Marikina City. Gracing this event is Marikina Vice Mayor Fabian Cadiz.

MVSM is a merger between Marikina Valley Rural Bank and Bank of San Mateo. Both banks are pioneer banks in their respective towns and were the only banks to service the banking needs of the people of Marikina and San Mateo, Rizal for decades.

Today, its client base has grown to over 25,000, delivering deposit and loan products to the different towns in Rizal, Pasig and Marikina. The bank is also an accredited agent for both Bayad Center and Western Union.

MVSM has recently partnered with Habitat for Humanity in providing deposit products for the people in Marikina.
Check out their website at www.mvsmbank.com
_______________________________________________________________________________________
RBAP HAILS ONB, RB OF SAGAY FOR 2013 SSS BALIKAT NG BAYAN AWARD Posted: 26 Sep 2013 11:48 PM PDT

The Rural Bankers Association of the Philippines (RBAP) congratulates One Network Bank, Inc. and the Rural Bank of Sagay for bagging the Social Security System’s (SSS) Balikat ng Bayan Award last September 9.

The award was given in celebration of the SSS’ 56th Anniversary and in recognition of the invaluable role of employers, banks and the media as SSS partners in advancing security protection of Filipino workers. The awardees set the standards of quality service for the benefit of millions of SSS members.

This year, both the One Network Bank, Inc. and the Rural Bank of Sagay were awarded Best Rural Banks by the SSS.
Apart from One Network Bank, Inc. and the Rural bank of Sagay, ten (10) other awardees are: iRemit, Inc (Best Collecting Partner for OFW Remittances from 2010-2012), Jollibee Food Corporation and the Notre Dame of Cotabato, Inc. (Top employers in the large and small/medium Categories), Banco De Oro Unibank (Best Commercial Bank), Planters Development Bank (Best Thrift Bank), Ventaja International Corporation (2013 Best Collecting Partner), the Land Bank of the Philippines, First Consolidated Bank, the Manila Bulletin and Aksyon Solusyon of Radyo Singko.

The Balikat ng Bayan plaques were specially made by Filipino sculptor Dr. Antonino Raymundo and presented to the winners by SSS President and Chief Executive Officer Emilio de Quiros, Jr., Chairman Juan Santos and Executive Vice President Edgar Solilapsi.umanity in providing deposit products for the people in Marikina.
Check out their website at www.mvsmbank.com
_______________________________________________________________________________________
Rural Bank of Mangaldan: 50 Years of Genuine Commitment and Excellent Service
Posted: 26 Sep 2013 08:39 PM PDT

Unknown to many, the town name “Mangaldan” has different stories of origin. However, according to a Dominican Priest Fr. Raymundo Suarez, OP, in his manuscript, “Apuntes Cureosos de Pangasinan,” the word “Mangaldan” was derived from the root word “Alar” or “Alad,” which means a fence made of bamboo or of any similar material. Despite the presence of bamboo fences all over the town, Mangaldan’s primary economic resources include farming, livestock, poultry and fish. Its inhabitants, approximately 92,000, were known to be peace loving, intelligent and generous people.

It is in this first-class soil did the Rural Bank of Mangaldan laid its foundation. It was through the initiative of Drs. Ricardo C. Villamil and Vicente Jimenez that this bank was born. Reluctant to pursue banking due to lack of experience and background, Dr. Jimenez was later on convinced by Dr. Villamil to start to what will later become an outstanding financial institution of Mangaldan and nearby towns.

Rural Bank of Mangaldan prioritize their clients by offering a variety of deposit and lending services to meet the demands of the community. Among which are savings, time certificate of deposits and demand deposits. For lending, they offer agricultural loans, agrarian reform loans, commercial loans, industrial loans, short, medium and long-term loans, micro finance loans and money shop loans.

Apart from delivering the usual banking services, the Rural Bank of Mangaldan has never neglected its corporate social responsibility. Believing that education is the key to escape from the clutches of poverty, the bank sends poor but deserving students to pursue their studies. The bank also has programs geared towards environmental protection by engaging students from Talogtog Elementary School and Gueguesangen Elementary School in tree-planting activities.
Due to its outstanding contribution in the development of the countryside by being responsive to the needs of the rural community, Rural Bank of Mangaldan received numerous awards during the years 1970 to 1987.

Among which are as follows:

Golden Plaque Award as “Rural Bank of the Year 1976.” Which was presented to Dr. Jimenez by then box office movie queen Alma Moreno, assisted by Modesto Francisco, special assistant to the Central Bank Governor, and Manuel Santos of the CB-DRBSLA, and witnessed by then Secretary Arturo Tangco of the Department of Agriculture;
Achievement Award as “Most Outstanding Rural Bank of the Country for 1976-1977,” from the Central Bank of the Philippines;

“Rural Bank of the Year 1976-77, from the Samahang Bangko Rural ng Pangasinan”

“One of the Ten Best Managed Rural Banks in Region I in 1983,” from the Central Bank of the Philippines;
Rural Bank of Mangaldan prides itself as the No. 1 single taxpayer in Mangaldan and for taxable year 2001, the No. 1 taxpayer in Pangasinan.

Since stability came hand-in-hand with the quality of leadership, Dr. Vicente Jimenez has turned over the stewardship of the bank to his son, Mr. Alberto Jimenez, who is presently serving as the Chairman of the Board, President and General Manager. Like his father and predecessor, the latter is equally competent in continuing the legacy of the founder. He had been the President of the Samahang Banko Rural ng Pangasinan Foundation, Inc. in 2001-2003 and President of the Confederation of Northern Luzon Rural Banks in 2002-2003.

As the bank celebrates its golden anniversary of service, advocacy and quality, clients can rely on the touchstones the bank have since its humble beginning to prove that rural banking remains the finest partner in the countryside in times of need. The bank holds itself as a fine example of stewardship, which can be attested by its 50 years of uplifting the lives of the people of Mangaldan.

Over the years of brilliance in the industry, the Rural Bank of Mangaldan now known as the Bangko Rural ng Mangaldan was able to set a standard in the industry not only in the town but also in nearby areas and will continue to do so in the years ahead as led by its new management.
_______________________________________________________________________________________
Landbank cites outstanding rural banks
Posted: 23 Sep 2013 11:50 PM PDT

MANILA, Philippines – For the 15th consecutive year, the Land Bank of the Philippines (LBP) once more paid tribute to its outstanding partner countryside financial institutions (CFIs).

LBP president and chief executive officer Gilda E. Pico said CFIs have unique strengths and potentials that allow them to truly play a distinct role in countryside development.

“This bounty of possibilities has inspired us over the years to continuously expand support to this sector,” Pico said, adding that the conferment of awards brought with it total cash prizes of P1.95 million.

Conferred with the Golden Award was the One Network Bank Inc. (A Rural Bank) in Davao City, which received a trophy and cash prize of P500,000. The Golden Award is given to a former Hall of Fame awardee which continued to support small farmers and fisherfolk as evidenced by their increasing number of small farmers and fisherfolk assisted and loan portfolio to the sector.

The Rural Bank of Goa Inc. from Camarines Sur was named the most outstanding CFI in the national category, followed by the Gateway Rural Bank Inc. in Bulacan.

The Rural Bank of San Jose Inc. in Camarines Sur bagged the third place while the Rural Bank of Cauayan Inc. in Cauayan City and the Cantilan Bank (A Rural Bank) Inc. in Surigao del Sur landed in fourth and fifth places, respectively.

The first, second and third place winners in the national level received P300,000, P200,000, and P150,000, respectively while the fourth and fifth place winners received P100,000 and P75,000, respectively.

Citations were likewise given including cash prize of P75,000 each to the most outstanding rural banks in three regions: Region 1 – Rang-ay Bank Inc. (A Rural Bank); Region 4-A – Bangko Kabayan (A Rural Bank) Inc.; and, Region 11 – Rural Bank of Digos Inc.

Special awards were also given to the Rang-ay Bank as Best CFI Intermediary (with lowest pass-on rate to end borrowers); Rural Bank of Cauayan Inc. of Isabela as Best CFI Availer – Agri/Agra Loans; Rural Bank of Goa as Best CFI Availer – Microfinance Loans; and Gateway Rural Bank as Best CFI Availer – All Loans.

In the first semester of 2013, LBP extended P9.8 billion in loans to CFIs, benefiting 165,478 farmers and fisherfolk nationwide.

Source: http://www.philstar.com/banking/2013/09/24/1237328/landbank-cites-outstanding-rural-banks
_______________________________________________________________________________________
China Bank buying 67% stake in Plantersbank
Move seen to boost lending to SMEs
By Paolo G. Montecillo
Philippine Daily Inquirer
3:41 am | Thursday, September 19th, 2013


Henry Sy-led China Banking Corp. (China Bank) aims to strengthen its small- and medium-enterprise (SME) lending business with its acquisition of Planters Development Bank, which was approved Wednesday.

In a disclosure to the local bourse, China Bank said it was planning to take over the smaller bank by acquiring as much as two-thirds of its shares.

The deal combines the resources of Plantersbank, the country’s leading bank for SMEs, with China Bank, a 93-year old universal bank with a “history of supporting entrepreneurs in the country and a solid track record of financial strength and stability,” China Bank said in a statement.

Shares of China Bank were up by 4.35 percent on Wednesday following the announcement. The company’s stock outperformed the main index, which closed 0.16 percent lower.

The Sy group also controls BDO Unibank, the country’s biggest lender.

“The Plantersbank deal bolsters China Bank’s current strategy in two areas—growing its middle market/SME portfolio and its network expansion program. China Bank is in the midst of the most rapid expansion in its history,” the Sy-led bank said.
From 148 branches in 2006 at the start of its expansion program, it has a total network of 333 branches to date, complemented by 544 ATMs nationwide. The group will now have a combined network of at least 411 branches.

As of June 2013, China Bank had total assets of P345.6 billion, gross loans of P189.9 billion, and stockholders’ equity of P44.6 billion.

For the first semester of 2013, the bank posted a 46-percent growth in consolidated profit to P2.96 billion from P2.03 billion in the same period last year, for a return on average equity of 13.24 percent and a return on assets of 1.81 percent.
The China Bank Group includes China Bank, China Bank Savings (CBS), Unity Bank, CBC Insurance Brokers Inc., and Bancassurance affiliate Manulife China Bank Life Assurance Corp. (MCBLife).

The Investment & Capital Corp. of the Philippines (ICCP) acted as the exclusive financial adviser to Plantersbank for the transaction.

Plantersbank, chaired by former Ambassador Jesus Tambunting, has total assets of more than P52.7 billion as of May 2013, total loan portfolio of P33 billion, deposits of P43.6 billion and nationwide network of 78 branches.
_______________________________________________________________________________________
In safe hands
Posted: 18 Sep 2013 06:44 PM PDT

Recently, the Bangko Sentral ng Pilipinas reported that the personal remittances from Overseas Filipino Workers (OFWs) grew from 6.4 percent to $13.9 billion for the first half of 2013, compared to the same period a year ago. The sustained growth was still largely driven by the land-based OFWs whose remittances comprised of about threefourths (75.2 percent) of the total.

With such money coming in, are there options available for our “modern day heroes” and their families here in our country to further grow their funds? For instance, having too much money can prove fatal especially if these are placed in the “wrong hands” or even placed in an investment asset where some might lack substantial knowledge on the risks associated to it. Thus, choosing the right investment destination for the remittance money is as equally important as keeping the overseas job itself.

Aside from the usual investments in real estate and in various business opportunities, the rural banking industry represents a safe and viable destination for the hard-earned money of OFWs.

Rural banks are in the best position to serve the financial needs of OFWs and their families as most of them reside in rural communities where rural banks operate. It is not uncommon for rural bank owners and staff to personally know these people: they typically come from same villages or barangays, and they almost shared their childhood together. No other financial institution can better provide a more personable service than grassroots companies like rural banks.

Rural banks likewise offer different financial and non-financial products and services to OFWs and their families. These include high-yield medium/long-term time deposit, children’s savings accounts, education and housing loans, bills payment and collection services for pension funds and government healthcare services, as well as advisories on how to start business ventures and undergo skills training in partnership with different government agencies. Most rural banks also provide counseling services to OFW spouses on how to best take care of their money. They become like a “financial coach” to families, providing helpful tips on how to become entrepreneurs and how to keep their businesses profitable.

Remittances saved likewise help provide employment opportunities since the law provides that rural banks should invest their earnings back to the rural communities where they operate. All these opportunities help improve the utilization and conversion of remittances into productive investments and ventures in the countryside, thus expanding the benefits derived from foreign remittances.

In 2012, OFWs remitted more than $21 billion, equivalent to 8.5 percent of the country’s gross domestic product last year. Such a powerful contributor to the economy deserves nothing less than the utmost care and the best treatment only rural banks can truly offer.
_______________________________________________________________________________________
BSP shutters rural bank in Davao del Norte      
ABS-CBNnews.com
Posted at 09/16/2013 7:02 PM | Updated as of 09/16/2013 7:02 PM

MANILA, Philippines - Another rural bank has been shuttered by the Bangko Sentral ng Pilipinas.

The Monetary Board has placed the Rural Bank of Sto. Tomas (Davao del Norte), Inc. under the receivership of the Philippine Deposit Insurance Corporation (PDIC) last September 13.

The PDIC took over the bank on Monday (September 16).

Rural Bank of Sto. Tomas has three units -- the head office located along R. Magsaysay Ave., Sto. Tomas, Davao del Norte, and two branches in Asuncion and Braulio Dujali.

As of June 30, 2013, the bank had 8,023 accounts with total deposit liabilities of P67.7 million. Around 99.9% of the deposit accounts have balances of P500,000 or less and fully covered by deposit insurance. Total insured deposits amounted to P58.2 million or 86.0% of the total deposits.

PDIC said assured the bank's depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.

The PDIC will conduct a Depositors-Borrowers Forum on September 20, 2013 to inform depositors of the requirements and procedures for filing deposit insurance claims.

For more information, visit www.pdic.gov.ph. Concerned parties may also call the PDIC Toll Free Hotline at 1-800-1-888-PDIC(7342), the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph.
_______________________________________________________________________________________
Cash-rich banks barely needed BSP’s rediscounting window      
Published on Tuesday, 10 September 2013 19:26
Written by Bianca Cuaresma

LOCAL banks posted a decline in their availment of the Bangko Sentral ng Pilipinas’s (BSP) peso-rediscount window, an indication of ample liquidity supply among banks, latest data from the central bank show.

The BSP reported total loan availment of commercial, thrift and rural banks amounting to P16.41 billion in the first eight months. This was 44.1 percent lower than the P29.35 billion seen in the same period last year.

The central bank’s peso-rediscounting window allows qualified banks to get loans or advances from the BSP using eligible papers of its borrowers as collateral. Through this facility, the central bank advances the money the banks have yet to collect from borrowers and effectively speeds up the lending process.

According to BSP data, 81.7 percent of the total amount rediscounted went to commercial credits, 7.7 percent to capital expenditures, 3 percent to agricultural and industrial credits, 0.6 percent to permanent working capital, 0.1 percent to housing and 6.9 percent to other credits.

Meanwhile, dollar-denominated rediscounting from January to August this year under the Exporters Dollar and Yen Rediscount Facility also decreased by 28.6 percent.

Seven commercial banks and a thrift bank exchanged their foreign currency receivables for quick cash from the BSP worth $87.9 million as of end-August this year, benefiting 30 exporters. This was lower compared to the $123.1 million granted in the same period last year. No bank approached the Yen rediscounting window since the start of the year, however.

For September, rates stood at 0.182 percent for dollar rediscounting and about 0.116 percent for the Japanese yen. The rates are based on the London Interbank Offered Rate as of end-August this year.

For the peso-rediscounting facility, interest rates remained at 3.5 percent for all maturities. This had been in place since October last year. The BSP’s Monetary Board (MB) also decided to maintain the same rate during its rate-setting meeting in July. The MB will hold its next policy meeting this Thursday.
_______________________________________________________________________________________
Advanced Course on Property Appraisal – Oct 18-19, 2013      
Posted: 08 Sep 2013 08:21 PM PDT

Advanced Course on Property Appraisal
Date: Oct 18-19, 2013 (Friday-Saturday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Engr. Ferdinand Bocobo
Senior Property Manager, BDO

Seminar Fee:
1. Early bird – P4,200 (on or before Sept 27, 2013)
2. Regular Rate – P4,600 (after Sept 27, 2013)
3. Non-Member/Delinquent – P5,520

Mode of Payment
• A Non-Refundable commitment fee of P2,300.00 per participant.
• Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Training Policies:
1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations. RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations.

Deadline for submission of registration is not later that Oct 11, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or Oct 07, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: – This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only
b) 3 days prior to the seminar date is entitled for a half refund *Regular Rate only
c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)
d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies
Lectures & Actual Computations
Expected Participants
Appraisers,

Course Outline
PART I: Salient Features of Republic Act 9646
A. Continuing Education Requirements under D.A.O. No. 3 Series of 1999
B. Salient Features if the I.R.R. Of the RESA 9646
C. Overview of the Philippine Valuation Standards (PVS)

PART II: Review of the Sales Comparison and Cost Approach
A. Other Primary Methods of Valuation
a. Valuation by Allocation
b. Valuation by Extraction / Abstraction
c. Valuation by Inferential and Rectification
d. Stripping Method of Valuation
e. Valuation by Plottage and Assemblage
f. Valuation by Averaging
g. Ground Rent Capitalization
h. Valuation by Discounted Cash Flow
B. Income Approach
a. Land Residual Technique
b. Building Residual Technique
c. Property Residual Technique
C. Hypothetical Subdivision Development Technique

PART III: Sample Problems

Download the Confirmation Sheet in PDF
_______________________________________________________________________________________
Credit Investigation Seminar – October 17, 2003      
Posted: 04 Sep 2013 07:49 PM PDT

Date: Oct. 17, 2013 (Thursday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Engr. Elmer R. Rivera
FVP, Head CI & Appraiser, Metro Bank,
Trainer/Consultant

Seminar Fee:

1. Early bird – P2,400 (on or before Sept 27, 2013)
2. Regular Rate – P2,800 (after Sept 27, 2013)
3. Non-Member/Delinquent – P3,360

Mode of Payment

A Non-Refundable commitment fee of P1,400.00 per participant.
Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
Proof of payment fax to (02) 527-2980.
Check payments, should be payable to (RBRDFI).

Training Policies:

1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations.

RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations.

Deadline for submission of registration is not later that Oct. 11, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or Oct 07, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: - This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only

b) 3 days prior to the seminar date is entitled for a half refund * Regular Rate only

c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)

d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies

Lectures & Case presentations
Expected Participants
Appraisers, CIs, Credit & Loan Officers

Course Outline

Introduction to Credit
Definition of Credit
The Credit Process
Importance of Credit
Types of Credit
The 5 C’s of Credit and definition of each
The Credit Evaluation and Analysis
The Credit Evaluator
Credit Investigation as Defined
The Credit Investigator
Objectives of Credit Investigation
Sources Of Credit Information
Ways of Gathering Credit Information
Different Types of Credit Investigation
Credit Investigation on Individual
Credit Investigation on Business / Corporation
Negative Checking (CMAP / NFIS)
Bank Checking (BAP member Banks and non-BAP member banks)
Field Checking
Different Types of Field Checking
Address / Business Verification
Employment Verification
SEC/DTI Verification
Trade Checking
Court Case Verification
Credit Card Verification
LTO Verification
Property Search

Download CIR
_______________________________________________________________________________________
Advanced Course on Property Appraisal – Oct 18-19     
Posted: 04 Sep 2013 07:53 PM PDT
Date: Oct 18-19, 2013 (Friday-Saturday)

Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Engr. Ferdinand Bocobo
Senior Property Manager, BDO
Seminar Fee:
1. Early bird – P4,200 (on or before Sept 27, 2013)
2. Regular Rate – P4,600 (after Sept 27, 2013)
3. Non-Member/Delinquent – P5,520
Mode of Payment
• A Non-Refundable commitment fee of P2,300.00 per participant.
• Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Training Policies:
1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations. RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations. Deadline for submission of registration is not later that Oct 11, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or Oct 07, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: – This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only
b) 3 days prior to the seminar date is entitled for a half refund * Regular Rate only
c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)
d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies
Lectures & Actual Computations
Expected Participants
Appraisers,

Course Outline

PART I: Salient Features of Republic Act 9646
A. Continuing Education Requirements under D.A.O. No. 3 Series of 1999
B. Salient Features if the I.R.R. Of the RESA 9646
C. Overview of the Philippine Valuation Standards (PVS)

PART II: Review of the Sales Comparison and Cost Approach
A. Other Primary Methods of Valuation
a. Valuation by Allocation
b. Valuation by Extraction / Abstraction
c. Valuation by Inferential and Rectification
d. Stripping Method of Valuation
e. Valuation by Plottage and Assemblage
f. Valuation by Averaging
g. Ground Rent Capitalization
h. Valuation by Discounted Cash Flow
B. Income Approach
a. Land Residual Technique
b. Building Residual Technique
c. Property Residual Technique
C. Hypothetical Subdivision Development Technique

PART III: Sample Problems

Download CIR
_______________________________________________________________________________________
BSP Circular No. 806-2013: The Establishment of Two Rediscounting Windows    

Dear RBAP Members:
Below is Bangko Sentral ng Pilipinas (BSP) Circular No. 806 Series of 2013: The Establishment of Two Separate Rediscounting Windows.

The Circular Letter is posted in the BSP Website.
View/Download BSP Circular 806-2013

Thank you.
_______________________________________________________________________________________
Banks must brace for new BSP regulations   
Published on Monday, 02 September 2013 19:49
Written by Genivi Factao

The Bangko Sentral ng Pilipinas (BSP) is fully prepared to implement the fortified guidelines contained under the Basel Core Principles (BCP) whose tenets were raised from 25 to 29 BCPs.

This was learned from BSP Officer in Charge and Director Lyn Javier who said the central bank continues to endeavor to comply with the terms of Basel 3 for more effective banking supervision to better insulate the financial system from overseas-borne and domestic reverses.

Javier said the BCPs are essentially best regulatory practice standards to which the local regulator aspires as part of its supervisory strategy and risk management goals.

BCP is comprised of essential criteria and additional criteria, which are the best practice standards.

Principles 1 to 13 cover power, responsibilities and functions of supervisors. “These are the must have of banking supervisor such as BSP,” Javier explained.

Principles 14 to 29 provides prudential regulations and requirements for banks.

“These are what the bank supervisors must require their banks to have,” she added. The common principles/standards for BCPs 14 to 29 include proportionality, concept of market development and stress testing.

Proportionality means there is no one-size-fits-all risk management system for banks. The application of guidelines mindful of the core principles vary from bank to bank depending on size, risk profile and complexity.

The BSP, Javier said, is adopting the proportionality principle in its risk- based supervision.

“We’re not requiring rural banks to adopt complicated and intricate systems as those of commercial banks. [Regulatory] expectation should be commensurate to the risk profile and business models of bank,” she said.

Market development, on the other hand, is being sensitive to the developments in the market.

She said it requires supervisors to compare one bank to another or to have peer analysis to find out the performance of one bank vis-à-vis another given the circumstances in the economy.

Stress testing is also an important part of risk management of bank’s forward-looking stress testing framework to be able to asses if they have enough capital to withstand the shock or stress scenarios that could happen according to Javier.
She took notice of Principle 16 and 24 on capital adequacy and liquidity.

“We have yet to adopt the liquidity framework of the Basel 3 framework, specifically the liquidity coverage ratio or the net stable funding ratio.

“It’s difficult to adopt this right away, considering from our current regulatory regime. We don’t have any liquidity threshold under existing regulations. We only issued circular 545 on the expectation on liquidity risk management,” she said.

BSP is conducting a continuing policy studies on the propriety of setting liquidity threshold for the domestic industry. Under the Basel 3 standards, you have the liquidity coverage ratio or the short term ratio to measure whether a bank could withstand a 30-day stress scenario, Javier said.

Currently, other countries are contesting the definition of the high quality level of liquid assets.
_______________________________________________________________________________________
MB approves implementing rules on foreign equity infusion in RBs   
Published on Monday, 02 September 2013 00:00
By A Web design Company

The Monetary Board (MB) has approved the implementing rules of Republic Act No. 10574 or “an Act Allowing the Infusion of Foreign Equity in the Capital of Rural Banks” which allows non-Filipino citizens to own up to 60 percent of the voting stock of a domestic rural bank (RB).

Consistent with the provisions of the law, the implementing rules contained in Bangko Sentral ng Pilipinas (BSP) Circular 809 are aimed at revitalizing the rural banking industry and improving the access to banking services in the country’s rural areas.

The implementing rules provide the general guidelines for the entry of foreign banks, non-bank corporations and individuals as shareholders of RBs.

The fitness of prospective investors in RBs will be assessed based on their strategic objectives, reputation and integrity and effectiveness of banking or business model.

Qualified foreign investors are allowed to pour capital into several RBs to the extent authorized by the MB.

Aside from foreign ownership of RBs, Circular 809 also sets the rules for the number of independent directors for RBs, the membership of elective or appointive official in the RB Board, the foreclosure of lands used as RB loan collateral, the valuation of government-held shares in RBs and the computation of dividend rates on RB shares held by government–owned or -controlled financial institutions.

The MB has issued the implementing rules for RA 10574 after series of consultations with the rural banking industry and key stakeholders.

The BSP is keen on strengthening the RB industry as part of its efforts to promote financial stability. RBs are also essential to enhancing financial inclusion by boosting access to financial services in the countryside. Financial stability and inclusion are supportive of sustained and balanced economic growth, which is a key objective of the BSP.
The new law amends RA 7353, otherwise known as the Rural Bank Act of 1992. It is also a consolidation of House Bill 5360 Senate Bill 3282.

Rural Bankers Association of the Philippines (RBAP) said the new law will help create an environment conducive to economic growth in the countryside.

“The passage of the Foreign Equity Bill into a law is a major win not only for rural banks, but to the countryside as well. Now that foreign investments are allowed, rural banks are now in a better financial position to reach out and serve both the unbanked and under-banked through improved banking services. We expect continuous development in the countryside especially now that rural banks are made even stronger and sustainable,” said Atty. Edward Leandro Garcia, former RBAP president, said.

Garcia said the measure would provide an additional source of capital for rural banks, placing them on a level playing field with thrift and commercial banks.

With the law in place, he said RBAP could now open its doors for talks on potential foreign investor partnership.

Nestor Espenilla, deputy governor of the Bangko Sentral ng Pilipinas (BSP) earlier said allowing foreigners to own in part rural banks will also mean improvements in their technological and operational capacity.

“Allowing foreign equity will give rural banks another option to increase capital. But more important than the money is the know-how,” Espenilla said.

Legislators, regulators and economists predict that foreign investors’ entry into the local rural banking industry will have a direct impact on countryside development, as it will spur economic activities in rural areas by creating an environment that is beneficial to foreign investors, local banking patrons, and national economy.

A healthier and more competitive rural banking sector, with the benefit of international partnerships, will mean more resources to reach out to the unbanked, underbanked, and the less privileged sector of society, according to Garcia.

“Our goal is to continue the role for which rural banks where established and that is to promote financial inclusion in the far flung areas of the Philippines,” Garcia said.

He stressed that foreign equity in rural banks will serve as a major stimulus for microfinance, micro-enterprise, and agriculture sectors, and all will serve as catalysts in countryside development.

The legislation will put rural banks in equal footing with all other banking categories, as it will open a new source of equity infusion, particularly for rural banks that are hard-pressed to expand and cannot afford sophisticated forms of financial services.
_______________________________________________________________________________________
Flood-hit banks get BSP relief   
By Paolo G. Montecillo
Philippine Daily Inquirer
7:16 pm | Sunday, September 1st, 2013

The Bangko Sentral ng Pilipinas (BSP) is granting regulatory relief to banks whose operations were affected by the recent flooding in Luzon.

This follows recent inclement weather brought by weather disturbances in the form of typhoon “Labuyo,” which affected parts of Northern Luzon, and the Southeast Monsoon made worse by tropical storm “Maring,” which led to flooding in Metro Manila and nearby provinces.

Under the list of relief measures approved by the BSP last week for thrift, rural, and cooperative banks are the exclusion of loans of borrowers in affected areas in the computation of soured loans, waiver of penalties for reserve deficiencies of branches in affected areas, and a moratorium on monthly payments to the BSP for banks undergoing rehabilitation.

Subject to the approval of the BSP, small banks would also be allowed to book probable losses from loans of borrowers in affected areas on a staggered basis over a maximum of five years.

The BSP said it would also waive penalties for delays in the submission of supervisory reports.
_______________________________________________________________________________________
BSP Circular No. 809: Amendment to Relevant Provisions of the Manual of Regulations for Banks Implementing RA 10574   
Posted: 28 Aug 2013 06:57 PM PDT

Dear RBAP Members:

Below is Bangko Sentral ng Pilipinas (BSP) Circular No. 809 Series of 2013: Amendment to Relevant Provisions of the Manual of Regulations for Banks Implementing RA 10574

The Circular is posted on their official website and can be accessed through: http://www.bsp.gov.ph/downloads/regulations/attachments/2013/c809.pdf

To download, please click: IRR – Foreign Equity Law

Thank you.
_______________________________________________________________________________________
Pres. Benigno Aquino’s Message for the Rural Banking Week   
Posted: 27 Aug 2013 01:35 AM PDT

MESSAGE
My warmest greetings to the Rural Banking Association of the Philippines as you observed the Rural Banking Week.

In the past three years of our administration, we have witnessed a steady rise in our country’s economic trajectory. Our newly instituted social and fiscal reforms – supported by unprecedented growth in GDP, upgrades from international credit rating agencies, and heightened investor and consumer confidence – have reestablished the Philippines as the next Asian tiger. All of these accomplishments are due in part to the valuable contribution of our rural banking industry. May you continue to be a driver of our economy, by creating more investment and livelihood opportunities for Filipinos in our rural areas, empowering them to play greater roles in revitalizing our nation.

The dynamic partnership of the public and private sectors advances their respective enterprises, and proves the Filipino people’s commitment to inclusive, equitable progress. Let us do our utmost to nourish our gains with the revived culture of integrity, transparency, and accountability, in pursuit of a brighter tomorrow for our country.

I wish you a successful gathering, and more power.

(Sgd). BENIGNO S. AQUINO III
Manila, August 2013
_______________________________________________________________________________________
REMINDER: October 7, 2013 – Deadline for Submission of 3Q Deposit Interest Rates
Posted: 26 Aug 2013 07:56 PM PDT
August 27, 2013


Dear Federation and Confederation Presidents and RBAP Members:

As part of our commitment with the Bangko Sentral ng Pilipinas (BSP), we would like to remind you of the submission of deposit interest rates for the Third Quarter of 2013.

The deadline for the submission of the Third Quarter Deposit Interest Rates is on October 7, 2013 (Monday). Kindly see attached file for the prescribed format.

To Federation and Confederation Presidents, kindly remind your members to submit their data on or before the set deadline of submission so their data will be included in the consolidated RBAP report that will be submitted to the BSP. Please email your deposit interest rates at info@rbap.org or michelle.rbap@gmail.com

We hope for everyone’s cooperation on the matter.

Thank you very much.
View/Download Template
_______________________________________________________________________________________
Emergency kit during calamity
Posted: 22 Aug 2013 02:30 AM PDT

Torrential rains brought about by Tropical Storm “Maring” recently pounded parts of Luzon including Metro Manila into submission, causing floods in a number of main thoroughfares.

Aside from floods and the resulting massive traffic jams, another usual sighting during these unfortunate times is families that found their homes submerged in flood waters being relocated to higher, dry grounds by barangay and municipal officials. Here in the Philippines, these high-ground and dry locations usually mean empty basketball courts and barangay halls that are converted to relocation sites. Meanwhile, the usual parties subject to relocation efforts when calamities occur are families in rural communities, aside of course from the informal settlers living in high-risk areas like close to creeks and rivers in the metropolis.

What we hope to see, and be assured of, in the future whenever heavy rains and floods hit the country again is rural families being financially secure even in the face of these calamities.

As these come with predictable regularity, it is important for the rural banks to continue to tailor their operations accordingly. This means, for example, to go easy on loans for newly-planted crops that will suffer from the onset of torrential rains. Since the ability to make accurate predictions is not perfect, or an off-season weather disturbance suddenly appears, some of the loan portfolios go sour.

When these threaten to adversely affect the banks, the Rural Bankers Association of the Philippines (RBAP) immediately applies for regulatory relief from the BSP. Such “relief” is temporary measures to help the banks survive the crisis while they and their clients are recovering.

Any increase in loan demand after a calamity depends on the extent of the resulting devastation. If it is so sweeping as to completely destroy entire livelihoods as Typhoon Pablo did in four of Davao Oriental’s municipalities, there is no loan increase to speak of. If, however, it is the cyclical disturbance, there may be increased demand as rebuilding begins.

For rural banks, however, it is important that some source of income is still available so that these borrowers can start paying their loans immediately, even if only for a fraction of the regular installment amount. Rural bank clients tend to have thinner financial cushions, which make it difficult to even pay such a fractional amount. This explains why rural banks in weather-challenged areas must plan very, very carefully at all times.

One of the ways to provide protection to poor individuals who have little savings is through the use of customized financial tool catering to low valued assets and compensation for illness, injury or death, which is made possible through microinsurance.

Fortunately, financial institutions like rural banks offer microinsurance products that cater specifically to the needs of the poor. Microinsurance is a very important tool to aid low-income households through insurance plans tailor-fit to their needs as it has limited amount of premiums, contributions, fees, and charges that do not exceed five percent of the current daily minimum wage and a ceiling on guaranteed benefits that do not exceed 500 times the current daily minimum wage.
Admittedly, utilization of insurance among Filipinos in general is still very low, what more among those in rural communities wherein they feel that they would rather spend money for food and other basic things than on insurance.

And thus, there’s the rub: people have yet to see insurance as a necessity, not until the time comes when they actually need it. That’s the thing about insurance. You hate, and dread, the moment that you will actually need it. That fear is multiplied a hundred fold when that time indeed does come—and you don’t have insurance.

Located generally in the same community as their target market, rural banks are in the best position to understand the specific needs of the rural communities compared to bigger financial entities. As such, they have been permitted to act as agents of microinsurance products through the Bangko Sentral ng Pilipinas (BSP) Circular 683, series of 2010. This authority allowed rural banks to serve as channel partners on microinsurance, facilitate client’s enrollment and collect premiums and claims administration.

On the other hand, the Rural Bankers Research and Development Foundation, Inc. (RBRDFI), the training arm of the Rural Bankers Association of the Philippines, assists rural banks in the enhancement of their microinsurance services by providing a step by-step guides and ready-to-use templates of documents required by the BSP and the Insurance Commission.

RBRDFI conducts basic training courses on microinsurance to qualify rural banks as microinsurance agents and brokers. They also promote insurance literacy among rural bank clients through training and educational tools and materials.
To date, RBRDFI has trained more than 200 rural banks and 450 bank officers and staff in basic microinsurance.

While lost lives (hopefully it does not come to that) cannot be replaced when the full force of Mother Nature takes its toll on us, lost properties can be, to a degree. More importantly, microinsurance provides that financial safety net and peace and mind, so much so that all poor families have to worry about when the next typhoon hits is their personal safety.
Nevermind their belongings. Microinsurance has that covered, and then some.
_______________________________________________________________________________________
BSP Circular No. 808: Guidelines on Information Technology Risk Management for All Banks and Other BSP Supervised Institutions  
Posted: 22 Aug 2013 12:11 AM PDT

Dear RBAP Members:
Below is Bangko Sentral ng Pilipinas (BSP) Circular No. 808 Series of 2013: Guidelines on Information Technology Risk Management for All Banks and Other BSP Supervised Insitutions
The Circular Letter is posted on their official website and can be accessed through:
http://www.bsp.gov.ph/downloads/regulations/attachments/2013/c808.pdf

Thank you.
_______________________________________________________________________________________
BSP approves rules allowing foreigners to take over weak rural banks  
By: Maricel E. Burgonio, InterAksyon.com
August 26, 2013 9:48 AM


MANILA – The Bangko Sentral ng Pilipinas (BSP) has approved the implementing rules and regulations (IRR) of the Rural Bank Act, which allows foreign ownership of lenders in the countryside.

BSP Deputy Governor Nestor A. Espenilla Jr. said the Monetary Board last Thursday approved the IRR. The law, which enables foreigners to own up to 60 percent of a rural bank, is aimed at recapitalizing these lenders.

"Under the RB Act, we had 90 days to finish the IRR. We completed that," Espenilla told InterAksyon.com. President Benigno Aquino III signed into law the Rural Bank Act of 1992 last May 29.

The BSP is set to release within the week the IRR, which would detail the criteria for foreign takeover, including congruence of strategic objective of the investors with the law, good reputation and financial capacity, Espenilla said.

Last year, the BSP shut down 24 banks, mostly rural lenders, after they were found to have had insufficient capital to support operations. The BSP and the Philippine Deposit Insurance Corp earlier put in place a scheme – the Strengthening Program for Rural Banks – whereby third parties can acquire troubled rural banks in exchange for tax and other incentives, such as exemption from restrictions on additional branches in overbanked areas.

Espenilla said the BSP expects multiple mergers involving small banks to happen towards the end of the year.

The Philippines has 600 rural banks, accounting for about two percent of the country's total banking resources of over P7 trillion.
_______________________________________________________________________________________
Rural banking leaner but healthier than ever  
11:20 pm | Sunday, August 18th, 2013


This letter is to correct the misconceptions that the Aug. 13 editorial “Rural banking woes” may have created among Inquirer readers.

The rural banking industry today may be leaner but healthier. The reach of its 2,500 branches across the country is wider and they provide financial services to a broader area.

Increasing competition from bigger banks, and even from other lending institutions that have encroached on the market of the rural banking industry, has affected the profitability of some rural banks. Also, because they are the most numerous among all bank types, rural banks will have the highest number of closures.

On the Strengthening Program for Rural Banks and SPRB Plus Program of the Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp., the industry supports it. The industry recognizes the fact that mergers and consolidations will be crucial to the industry. There already have been mergers and buy-outs of rural banks by savings and commercial banks. More prospective buyers are now doing due diligence on many rural banks.

The increase in the non-performing loan (NPL) ratio of the industry from 2010 to 2012 was the result of typhoons and calamities: El Niño and 29 typhoons in 2010-2011, and Typhoon “Pablo” in 2012, which destroyed P34.4 billion worth of private infrastructure and agricultural property.

The 42-percent growth in total loan portfolio (TLP)—from P4.5 billion in 2011 to P110.70 billion in 2012—also contributed to the NPL increase. This means that with more money being lent, there would be a slight projected increase in the NPL.

There is also a social aspect distinct to rural banks when it comes to NPLs because we deal with people who live in our communities—our very own kababayan. Foreclosures on loan collaterals are generally avoided in favor of loan restructuring to aid the farmer or the small businessman. Aggressively foreclosing a property, though this will reduce the NPL, will force people to turn to loan sharks, resulting in more poverty for the community.

We recognize the challenges facing the industry and continue operating in line with the best banking practices and in conformity with the highest international Basel regulatory standards as imposed by the BSP, and improving our services as mandated by law. These include the services to the Agri-Agra sectors; the maintenance of the successful mobile phone banking platform; the introduction of microfinance and microinsurance products; and the continued evolution of the industry through technology and training.

Rest assured, based on the TLP, capitalization and other performance indicators, the rural banking industry is in a far better position today than it has ever been in the past.

—VITTORIO Z. ALMARIO, president, Rural Bankers Association of the Philippines
_______________________________________________________________________________________
True Measure  
Posted: 14 Aug 2013 07:28 PM PDT

They say that a person’s true character is tested by the way he performs in the face of adversity. When the pressure is at its highest, that is when one’s determination is truly measured.

The rural banking sector is facing a challenging time. In the midst of this, the sector still believes that the rough patch it is currently treading is just a temporary obstacle, a phase that any other business goes through. Be that as it may, this is high time for rural banks to show they are worthy of the trust of their clients—the under banked individuals who have otherwise no one to turn to.

Taking things into perspective, there are many reasons to remain optimistic. Foremost of which is the conducive regulatory environment that is expected to spur more activity within the sector. The measures undertaken by the Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corp. (PDIC) have brighten the future of local rural banks, even if current circumstances have made the present somewhat of a concern.

The Strengthening Program for Rural Banks (SPRB) Plus, a joint undertaking of the BSP and the PDIC, for instance, is seen to improve the delivery of financial services in the countryside as it encourage mergers and consolidations (M&As) among rural banks, fostering a stronger rural banking system. Under this program, strategic third party investor (STPI) rural banks intending to acquire eligible rural banks through M&As can avail of financial assistance from the PDIC and regulatory relief from the BSP.

Eligible STPIs now include strong and well-managed thrift banks and commercial banks. As such, they are entitled to regulatory incentives and/or financial assistance when investing in eligible banks, especially those serving the countryside and under banked customers. Non-bank corporations may also qualify as white knights. On top of the financial assistance granted through PDIC, additional incentives may be offered by the BSP to broaden participation under the Program and promote successful banking partnerships.

To further attract investors, the BSP likewise gives additional premium for STPIs acquiring three or more eligible banks. STPI commercial and thrift banks shall be granted one additional branching license in restricted areas, while STPI rural banks shall be granted one additional branching license in areas outside Metro Manila for every three eligible banks resolved under the Program.

The Program is expected to not only sustain and strengthen the financial condition of resulting banks, but also to improve their quality of corporate governance and management.

In addition, the effects of Republic Act 10574, or “An Act Allowing the Infusion of Foreign Equity in the Capital of Rural Banks, Amending RA 7353, Otherwise Known as the Rural Bank Act of 1992 as amended and For Other Purposes,” will be soon felt as foreign investors are expected to troop in and infuse much-needed capital to some rural banks.

R.A. 10575 allows non-Filipino investors to own, acquire or purchase up to 60 percent of voting stocks in rural banks, provided that the percentage of foreign-owned stocks will be determined by the citizenship of the individual or corporate stockholders of the bank.

Not only will the new law provide banks with the proverbial rope to hang on to, but also it will further boost countryside development in the country through investment in rural banks. It will serve as a key instrument for the government to achieve its goal of full financial inclusion.

Things may seem daunting at this point, but the current available opportunities and future of the sector has never been brighter. Rural banks are essential to countryside development and they will remain so for many years to come.
_______________________________________________________________________________________
Rural banking woes  
August 12, 2013 at 8:33 pm

Last Aug. 1, the Bangko Sentral ng Pilipinas ordered the closure of another rural bank—the Rural Bank of San Jose del Monte in Bulacan—due to insolvency. Meaning, the bank’s assets had fallen short of its obligations to depositors. The bank was placed under the receivership of the state-run Philippine Deposit Insurance Corp. (PDIC), which is now processing 3,855 deposit accounts—or 98 percent of the bank’s total accounts—with balances of P500,000 or less and, therefore, are fully covered by deposit insurance. The total insured deposits amount to P334.1 million, or 91 percent of the bank’s total deposits. That is a lot of government money going down the drain.

The Rural Bank of San Jose is the 12th placed under PDIC’s receivership so far this year. In 2012, 23 rural banks were padlocked by the Bangko Sentral and PDIC spent nearly P4 billion on insurance claims against those financial institutions. Going further back, 25 rural banks were closed in 2011; 21 in 2010; and 31 in 2009, six more than the 25 failed banks in 2008. In all these closures, PDIC had to pay billions of pesos in insurance claims.

Let’s look at the problem from another angle: The non-performing loans (NPL) ratio of the rural banking sector rose to 10.65 percent in 2012 from 10.32 percent the previous year. In absolute amounts, this was equivalent to P12.22 billion worth of bad loans. In comparison, the much bigger universal and commercial banks improved their NPL ratio last year to a record-low of 1.87 percent.

There are more than 500 rural banks catering mainly to the needs of those in the provinces, who have no access to the bigger banks. Only a small portion of this banking segment appears to be the weakest link in the local financial sector, the Bangko Sentral says, noting that problematic rural banks are the exception rather than the rule. Nevertheless, the government—through PDIC—has had to spend billions of pesos when it had to assume the remaining assets of failed banks and shoulder the payment of all their liabilities.

Making things worse is that the closure of many rural banks was due mostly to capitalization and mismanagement problems, the Bangko Sentral said, though some were triggered by unsafe and unsound banking practices.

Because of the spate of closures in the rural banking sector, the Bangko Sentral and PDIC in 2010 moved to give incentives to healthy rural banks that will acquire their troubled peers. The scheme, called Strengthening Program for Rural Banks (SPRB), was expanded in September last year to include in the list of those eligible for incentives commercial and thrift banks. The new and expanded version, called the “SPRB Plus,” is in effect until December 2013.

But the families owning the rural banks seem not really sold to the move to include the commercial and thrift banks to the SPRB Plus program. And yet the program was formulated precisely due to a lack of takers from the rural banking industry.

Most of the strong rural banks were not interested in acquiring a weaker industry player, regulators had found out. This, even though the incentives being offered to potential “white knights” include loans to help cover capital shortfalls and improve operations, temporary regulatory relief on capitalization and branching requirements, condonation, restructuring and waiver of past-due rediscounting, and emergency loans. Other owners simply did not want new investors to come in.
Rural bank owners should listen to Bangko Sentral Governor Amando Tetangco. In his speech at the 60th annual convention of the Rural Bankers Association of the Philippines last June, he said: “Inclusive growth is possible only if countryside development is given the support it needs. Embedded and part of the communities where they operate, rural banks are in the best position to help spur rural development. Rural banks have a crucial role to play in national development as 40 percent of Filipinos live outside urban areas. I say this because our efforts to promote mergers and consolidation have yet to produce the results we look forward to. While we continue to receive applications for incentives under the [SPRB Plus], the reality is [that] less than 20 percent of available funding for capital buildup has been utilized.”

Tetangco is looking in the right direction: For rural banks to achieve their full potential, there must be a shift in the mindset of their owners toward mergers and consolidation. There is no other way.
_______________________________________________________________________________________
BSP rediscount loans down 37%  
By Paolo G. Montecillo
Philippine Daily Inquirer

In a statement Monday, the BSP said rediscounted loans by commercial, thrift and rural banks from the start of the year up to July reached P15.91 billion, down 37.1 percent from P25.29 billion in the same seven-month period last year.

The BSP’s rediscounting facility allows banks to sell their receivables to the BSP. Unloading their receivables to the BSP gives banks the cash to continue lending to businesses and households.

The BSP charges an annual interest rate of 3.5 percent for loans extended under the rediscounting facility, or the same as the central bank’s overnight borrowing rate.

The BSP said 82.3 percent of the rediscounted loans were commercial credits, 2.8 percent were for agricultural and industrial loans, while the remaining 14.9 percent were for companies’ capital expenditure needs, services, permanent working capital and housing loans.

At the end of June, domestic liquidity in the country grew 20.3 percent, the fastest expansion in six years, latest documents from the BSP showed. In the same period, loans expanded by 12.3 percent.
_______________________________________________________________________________________
BSP shuts down another rural bank, 12th in 2013  
By Paolo G. Montecillo
Philippine Daily Inquirer
August 5, 2013 at 10:31 pm

The Bangko Sentral ng Pilipinas (BSP) has placed another rural lender under receivership due to insolvency, with the bank’s assets not enough to cover obligations to depositors.

In a statement, Philippine Deposit Insurance Corp. (PDIC) announced that the BSP’s Monetary Board had shuttered the Rural Bank of San Jose del Monte in Bulacan on Aug. 1.

The bank was placed under the deposit insurer’s receivership, the 12th so far this year.

Its three branches are in Apalit, Pampanga; and in Meycuayan and Sapang Palay, Bulacan. Latest available records show that as of June 30, 2013, the Rural Bank of San Jose had 3,917 accounts with total deposit liabilities of P367.7 million.
A total of 3,855 deposit accounts or 98.4 percent of the accounts have balances of P500,000 or less and fully covered by deposit insurance. Total insured deposits amounted to P334.1 million or 90.9 percent of total deposits.

PDIC said that upon takeover, all bank records will be gathered, verified and validated.

The state deposit insurer assured depositors that all valid deposits will be paid up to the maximum deposit insurance coverage of half a million pesos.

The PDIC also announced that it would conduct a Depositors-Borrowers Forum on Aug. 6-8, 2013 to inform depositors of the requirements and procedures for filing deposit insurance claims. Claim forms will be distributed during the forum.

Depositors with valid deposit accounts with balances of P15,000 and below need not file deposit insurance claims.

But depositors who have outstanding obligations with the Rural Bank of San Jose Del Monte including co-makers of the obligations, and have incomplete and/or have not updated their addresses with the bank, regardless of amount, should file deposit insurance claims.

The bank is majority-owned by the Heirs of Reuben M. Protacio (38 percent), Mario M. Leygo (17.5 percent) and Wilfredo R. Olaguer (17.5 percent), who is also the bank’s president and chair.
_______________________________________________________________________________________
Circular Letter: Basic Course on Corporate Governance for Bank Directors  
Posted: 01 Aug 2013 10:32 PM PDT

FOR: ALL PARTICIPATING RURAL BANKS
SUBJECT: CIRCULAR LETTER: BASIC COURSE ON CORPORATE GOVERNANCE FOR BANK DIRECTORS

The Rural Bankers Association of the Philippines (RBAP), and Rural Bankers’ Research and Development Foundation, Inc. (RBRDFI) through the Aklan Federation of Rural Banks (AFRB) is pleased to announce that it will conduct the seminar-workshop described below as part of its continuing strategy to strengthen the rural banking industry:

Download the Full Circular in PDF
_______________________________________________________________________________________
Survey On Agri-Lending by RBs   
Posted: 01 Aug 2013 10:26 PM PDT

To all RBAP members:

The Rural Bankers Association of the Philippines (RBAP), the Rural Bankers Research & Development Foundation, Inc. (RBRDFI) and the Agricultural Guarantee Fund Pool (AGFP) will undertake a joint “capacity building” activity through the Guarantee Partner Support Program (GPSP).

This capacity building initiative is in line with the concern that few rural banks lack confidence to provide agricultural loans to small farmers and fisher folks. Thus, it is envisioned that a greater understanding on agri-lending among banks through GPSP will increase credit access.

Your participation to this survey will help us develop an appropriate training program that will enhance understanding on the peculiarities of agricultural lending products, and in order to address the gap in agricultural lending.

We encourage the President or Chief Executive to accomplish this survey.


Download the Survey Form
_______________________________________________________________________________________
Upgrading to World Class Banking Practices Seminar Series Aug. 10, 17
and Sep. 7


Dear Batangas Rural Bankers,

Your Board of Directors is very excited to premier this seminar series which aims to help rural bankers upgrade banking practices to world class standards. The new schedule will be on the Saturdays of Aug. 10, 17 and Sep. 7, 2013 at Cafe le Barako, 2/F Chez Rafael building, De La Salle Lipa campus, Lipa City, Batangas.

The program will consist of the following subjects:

A. Lending Spread Analysis (Aug. 10).

At the end of this module, the participants will be able to determine the profitability of their lending operations and identify critical areas that must be addressed to improve lending profitability.

B. The Credit Scoring Tool (Aug. 17)

At the end of this module, the participants will be able to use a more cost efficient tool in the evaluation of loan applications.

C. Cash Flow based Approach to Lending (Sep. 7)

At the end of this module, the participants will be able to design a loan package that is sensitive to the expected cash flow of the borrower.

D. Project Supervision (Sep. 7)

At the end of this module, the participants should be able to effectively monitor the health of their borrowing accounts and formulate steps to proactively respond to potential threats to their portfolio.

F. Strategic Planning (Sep. 7) – SUBJECT TO AVAILABLE TIME

Towards the end of the program, the participants shall be required to present a portfolio improvement strategic plan based on guidelines/templates to be provided by the Consultant. This will be subject to critiquing by a panel composed of the Consultant, together with other personalities nominated by the FBRB.

See attachment for more details on each topic.

We are honored to benefit from the expertise of Reynaldo "Rey" P. Feria, a fellow banker with over 40 years in development banking and the last 9 years focused on the emerging markets of like Laos, Bangladesh, Micronesia and China.

You may refer to his attached curriculum vitae for more details.

This is the premier offering of this seminar series which other rural bank federations and confederations plan to also offer. The cost is only P2,000 per day or P6,000 for all three days. This will include a learning oriented venue, lunch, snacks, flowing coffee, seminar materials and certificates. Significant savings of P600 (pay only P5,400 for 3 days) can be enjoyed if reservation and payment for the 3 days is received by no later than Aug. 3, Friday via bank deposit (call Classic Rural Bank at 043-7233222, 7235554 or 0917-8029991 for details).

Register early because we will close the registration once we reach the maximum of forty (40) participants. We need to limit the number because it is a working seminar, using real life case studies, plenty of group work and presentations (subject to available time). Definitely, it is not a passive, listen only, kind of seminar.

Because of the limited participants, we recommend that banks send their senior officers, bank managers or department heads so they can cascade the technology to subordinates. A participant can reassign their seat to another colleague if they are unable to attend all three days or the topic for the day is more appropriate for someone else. The third session on Sep. 7 will be geared for senior management members involved in more strategic aspects of bank operations.

Reserve today! Take advantage of this premier seminar series. Be the first to learn and apply these new tools.

FBRB. Bayanihan sa Batangas. At sa Bayan.

Ricky Estrada
President
_______________________________________________________________________________________
BSP accredits rural, thrift banks under Agri-Agra Law
Posted on Sunday Jul 28th at 12:00am
By Prinz P. Magtulis

MANILA, Philippines - Ten rural and thrift banks have been accredited by the Bangko Sentral ng Pilipinas (BSP) to receive infusions from other lenders for compliance with the Agri-Agra Law of 2009.

The BSP, through Circular Letter 2013-040, identified these lenders as Rural Bank of Kiamba Inc., Producers Savings Bank, Rural Bank of Barili (Cebu) Inc., Rural Bank of Sta. Catalina Inc. and Philippine Resources Savings Banks Corp.
Also accredited were Rural Bank of Pilar (Bataan) Inc., Common Wealth Rural Bank Inc., Rang-Ay Bank Inc., Agri Business Rural Bank Inc. and Rural Bank of Bay Inc.

Under – the law, local banks are required to allot at least 25 percent of their total loanable funds for agriculture and fisheries credit. Broken down, 10 percent of that portion should be set aside for agrarian reform beneficiaries, while the remaining 15 percent should be allotted to agriculture and fisheries.

Cash infusion to rural and thrift banks is one of he wa shanks can comply with the law aside from direct lending.
Other means are investmenting in securities issued by Development Bank of the Philippines and Land Bank of the Philippines.

They also include investment in shares of Quedan and Rural Credit Guarantee Corp. as well as lending to construction of farm infrastructure such as including farm-to-market roads.

The law was enacted to provide adequate credit sources for the agriculture sector, which accounts for a tenth of the local economy and employs millions of Filipinos.

“The accreditation issued by the BSP is solely for the purpose of certifying that the loan portfolio of the above listed (firms) complies with the qualification requirements prescribed under the relevant law, rules and regulations,” the circular said.
“The accreditation does not serve as an endorsement by the BSP of the safety and soundness of the above listed banks,” it added.
_______________________________________________________________________________________
Complexity equals stringency
Posted: 25 Jul 2013 07:10 PM PDT

For rural banks that have diversified their revenue streams and have thus pegged themselves as a “complex” sort, the Bangko Sentral ng Pilipinas (BSP) has decided that some corporate screw-tightening is warranted.

This is a fair price to pay. After all, as rural banks evolve from simply engaging in basic deposit taking and lending activities to more complex ones such as large-scale remittance and cross-selling activities, their potential earnings grow, but so do the potential accompanying risks.

In both instances, the interests of the banks’ clients must be protected, particularly customers in rural communities as they are devoid of the financial safety nets during times of contingencies.

Also, the BSP just wants to protect rural banks from themselves. The industry should have no problem with this. The regulator wants to make sure that any new business venture does not end up in a financial misadventure.

This shift came about after the Monetary Board, the policy-making body of the BSP, formalized its requirements for rural and thrift banks to be classified as simple or complex, based on the complexity of their business. A change in the category will delve on the products and services they offer, their different kinds of customers and geographic reach.

Usually, rural and thrift banks are required to only put up an audit committee as long as they continue to offer a simple package of products and services. But as they level up their operations, these banks will now be obligated to form committees that will supervise certain components of their augmented businesses.

Banks classified as complex will be required to comply with higher corporate governance and compliance standards, including the establishment of governance committees.

In addition, complex rural and thrift banks will be required to appoint full-time compliance officers to ensure adherence by the banks to the requirements of the BSP.

On January 11 this year, the BSP issued Memorandum 2013-002, or the Guidelines in
Assessing the Quality of Corporate Governance in BSP-Supervised Financial Institutions (FIs).

These guidelines aim to provide a framework for assessing the quality of corporate governance in FIs.

“Good corporate governance is the foundation of safe and sound banking operations.

It embodies the principles of fairness, accountability and transparency,” the BSP said.

“This is critical particularly in the financial industry, where the public’s trust is paramount to sustain its resiliency,” it added.

It is better to err on the side of caution, particularly in an environment where public trust is regularly at stake. In
this instance, compliance to sound corporate governance practices and standards is the ultimate precautionary measure.
_______________________________________________________________________________________
BSP Circular Letter No. CL-2013-040: Accredited Rural Financial Institutions for the Purpose of Implementing the Agri-Agra Reform Credit Act of 2009 Pursuant to Circular No. 736 0f 20 July 2011
Posted: 25 Jul 2013 07:23 PM PDT

Dear RBAP Members:

Below is Bangko Sentral ng Pilipinas (BSP) Circular Letter No. CL-2013-040: Accredited Rural Financial Institutions for the Purpose of Implementing the Agri-Agra Reform Credit Act of 2009 Pursuant to Circular No. 736 0f 20 July 2011.

The Circular Letter is posted in the
BSP Website.
View/Download BSP Circular Letter No. CL-2013-040
_______________________________________________________________________________________
Bangko Sentral mulls another extension of rural bank strengthening program
By SIEGFRID O. ALEGADO, GMA NewsJuly 21, 2013 6:42pm

The Bangko Sentral ng Pilipinas may extend the incentives program it offers to big financial institutions acquiring troubled rural banks in a bid to encourage mergers and prevent more closures of banks in the countryside.

“If it's going to be productive in the sense that there will be more deals, we can keep an open mind,” central bank Deputy Governor Nestor Espenilla Jr. told reporters when asked if the bank will extend the August deadline for the strengthening program for rural banks (SPRB).

“The objective of the BSP is to facilitate more mergers,” he said at the sidelines of the central bank's appreciation dinner Friday night.

The SPRB is a multi-billion program designed to encourage mergers, consolidations and acquisitions (MCAs) of troubled rural banks by larger banks such as commercial banks and well-managed thrift banks.

The program started in 2010 and was intended to run until August of last year. The Bangko Sentral has extended it until August this year.

Espenilla said, “Quite a number of banks have availed of the SPRB. There are still pending transactions.”

He added that there are “pending significant mergers” for the year.

Just last Friday, shareholders of China Savings Bank, a unit of listed China Banking Corp., approved the merger with Pampanga-based Unity Bank, targeting 100 branches next year.

The merger is awaiting the green light from both the Bangko Sentral and the Securities and Exchange Commission.

The SPRB aims to give financial assistance to eligible strategic third-party investors desiring to enter into MCAs with eligible but capital-deficient rural banks. It also ensures that banks who want to enter into MCAs have strong balance sheets when it takes over a bank.

Among other perks given to participating rural banks are condonation, restructuring and waiver of past due rediscounting and emergency loans of the Bangko Sentral and all due dividends. — BM, GMA News
_______________________________________________________________________________________
The poor does save, too

The perception that poor people do not save money is a tad overblown. The fact is, they do, whenever they can.

According to the Bangko Sentral ng Pilipinas (BSP), as of end-March of this year, savings of microfinance clients reached P8.22 billion, a staggering improvement of 93 percent from P4.27 billion during the same period last year. The clients were from 186 banks with microfinance operations, which include rural banks.

No less than BSP Gov. Amando Tetangco, Jr. opined in a recent forum that it was the first time that total savings has exceeded the total microfinance loan portfolio, which is a strong indicator that the poor sector has a strong inclination to save money for future needs, particularly during emergency circumstances.

A strong proponent of microfinance in the country, rural banks serve as channels to mainly deliver basic banking services to the traditionally unbanked because they operate at the grassroots level. In effect, rural banks have become one of the most effective providers of microfinance to the poor that are mostly left unreached by bigger banks.

Rural banks believe that low-income groups are capable of lifting themselves up out of poverty if provided access to financial services. Increasing poor people’s access to better financial tools can help accelerate the rate at which they move out of poverty and help them be productive members of their community.

But as the said BSP data has shown, they are very much capable of saving for future contingencies as well, if given the chance.

The Philippines is already considered by multilateral funding institutions as one of the countries in Asia with a developed microfinance industry. Even the Economist Intelligence Unit (EIU) has described the country with “very strong regulatory regimes and good prospects for microfinance institutions to enter the sector and perform effectively” for three consecutive years, from 2009 to 2011. In 2010-2011, the country was adjudged as having the best microfinance regulatory framework among 54 countries.

Through microfinance, poor people can obtain small loans, receive remittances from relatives working abroad, and protect their savings. With access to credit at reasonable interest rates, poor people can likewise set up small businesses.

Access to financial services plays a critical role in reducing poverty incidence. Good and responsible management of very small assets can be crucial to the survival of poor people who live in ever risky conditions, due to the lack of a steady source of income, not to mention basic housing and food. To overcome poverty, the poor needs to be able to borrow, save, and grow their resources to protect themselves against risk. By providing direct access to financial services, rural banks allow poor people to progress from the “isang kahig, isang tuka” survival mode to one that can be economically self-sufficient.

Right now, admittedly, the country still has a long way to go to fill the huge demand-supply gap, especially in rural areas where delivering financial services remain a big challenge despite the unceasing efforts from the rural banking industry. Geographic barriers remain a big issue. Rural populations are usually situated over large areas with poor infrastructure. It normally costs more for banks to extend loans to a dispersed population.

In addition, rural folks are often dependent on agriculture and related activities for their sources of income. This income is often seasonal and very hard to predict because it is dependent on weather, which makes them largely unattractive to larger banks to serve.

Fortunately, rural banks have leaned on mobile banking to offset the geographical hindrances. Also, the industry—through the training programs of the Rural Bankers Association of the Philippines—has offered seminars on financial literacy, consumer protection, and accountability to customers for both bank staff and clients to ensure sound microfinance practice. Finally and more importantly, the rural banking industry has tailor-fitted its financial services and requirements to meet the capability of the poor sector, to at least minimize the risks associated with this market.

Published in The Manila Times, 17 July 2013
_______________________________________________________________________________________
BSP Circular Letter No. CL 2013-039: Approved applications for New Banking Offices and Opened/Re-Opened
Banking Offices during the 1st Quarter of 2013
Posted: 19 Jul 2013 03:15 AM PDT

Dear RBAP Members,

For your guidance, below is Bangko Sentral ng Pilipinas (BSP) Circular Letter No. CL 2013-039:

Approved applications for New Banking Offices and Opened/Re-Openend Banking Offices during the 1st Quarter of 2013.

The Circular Letter is posted in the
BSP Website.
View/Download BSP Circular Letter CL No. 2013-039
_______________________________________________________________________________________
More bank branches OK’d

THE CENTRAL BANK approved 243 new banking offices in the first quarter as banks continued to expand their presence nationwide and reach more market segments.

According to Bangko Sentral ng Pilipinas (BSP) data, applications for 211 regular branches, 12 extension offices, 10 other banking offices (OBO) and 10 microbanking offices were approved.

In the same period last year, only 97 applications were approved by the BSP.

“This is a good, concrete sign of the health and vitality of the banking system that supports our growing economy,” Deputy Governor Nestor A. Espenilla, Jr. said in a text message.

“This will also advance financial inclusion by making the banking system more accessible to the public,” he added.

Universal and commercial banks that applied include Asia United Bank Corp., BDO Unibank, Inc., Development Bank of the Philippines, East West Banking Corp., Land Bank of the Philippines, Maybank Philippines, Inc., Metropolitan Bank & Trust Co., Philippine National Bank, Rizal Commercial Banking Corp. and Security Bank Corp.
Five thrift banks, six rural banks and one cooperative bank also submitted applications.

BSP data also showed there were 82 banking offices that opened during the first quarter. Broken down, there were 60 regular branches, 12 OBOs, five microbanking offices, four extension offices and one microfinance-oriented branch opened.

The figure was lower than the 136 banking offices opened during the same period in 2012.

As of the first quarter, the number of offices of BSP-supervised institutions grew to 27,221 in the first quarter. It was a 3.11% increase from 26,399 offices the year before. -- Ann Rozainne R. Gregorio
_______________________________________________________________________________________
BSP mandates priority lanes for senior citizens in banks

MANILA, Philippines - Philippine banks are now required to have priority lanes for senior citizens as mandated by the Bangko Sentral ng Pilipinas (BSP).

This was learned late Friday after BSP Deputy Governor for Supervision and Examination Sector Nestor Espenilla Jr. said the new requirement of banks is a way to further implement the senior citizens’ law.

“The Monetary Board approved a policy to implement further the senior citizens’ law. Basically that requires banks to have priority lanes for senior citizens,” Espenilla said.

As early as 2008 or years before the BSP issued this memorandum, BDO Unibank had already designated special lanes for senior citizens in some of its branches.

According to the expanded senior citizens’ law, Republic Act 9994, Filipino residents who are 60 years old and above are to be recognized as “an integral part of the Philippine society” and “take their proper place in society and make it a concern of the family, community and the government.”

“This act shall establish mechanisms whereby the contributions of the senior citizens are maximized, adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole establish a program beneficial to the senior citizens, their families and the rest of the community they serve: and establish community-based health and rehabilitation programs for senior citizens in every political unit of society,” the act said.

Espenilla said the new policy is just a way of the central bank to follow the law.

“This is to comply with the law. Basically, it is a circular for banks to comply with the law to give proper affinity for senior citizens,” Espenilla said.

The formal BSP circular has not been released to the public yet as of Monday.
_______________________________________________________________________________________
BSP mandates priority lanes for senior citizens in banks

MANILA, Philippines - Philippine banks are now required to have priority lanes for senior citizens as mandated by the Bangko Sentral ng Pilipinas (BSP).

This was learned late Friday after BSP Deputy Governor for Supervision and Examination Sector Nestor Espenilla Jr. said the new requirement of banks is a way to further implement the senior citizens’ law.

“The Monetary Board approved a policy to implement further the senior citizens’ law. Basically that requires banks to have priority lanes for senior citizens,” Espenilla said.

As early as 2008 or years before the BSP issued this memorandum, BDO Unibank had already designated special lanes for senior citizens in some of its branches.

According to the expanded senior citizens’ law, Republic Act 9994, Filipino residents who are 60 years old and above are to be recognized as “an integral part of the Philippine society” and “take their proper place in society and make it a concern of the family, community and the government.”

“This act shall establish mechanisms whereby the contributions of the senior citizens are maximized, adopt measures whereby our senior citizens are assisted and appreciated by the community as a whole establish a program beneficial to the senior citizens, their families and the rest of the community they serve: and establish community-based health and rehabilitation programs for senior citizens in every political unit of society,” the act said.

Espenilla said the new policy is just a way of the central bank to follow the law.

“This is to comply with the law. Basically, it is a circular for banks to comply with the law to give proper affinity for senior citizens,” Espenilla said.

The formal BSP circular has not been released to the public yet as of Monday.
_______________________________________________________________________________________
BSP Circular Letter No. CL-2013-037: Publication/Posting of Balance Sheet (BS) and Consolidated Balance Sheet (CBS)
Posted: 17 Jul 2013 12:24 AM PDT

Dear RBAP Members:

For your guidance, below is Bangko Sentral ng Pilipinas (BSP) Circular Letter No. CL-2013-037:

Publication/Posting of Balance Sheet (BS) and Consolidated Balance Sheet (CBS).

The Circular Letter is posted in the
BSP Website
View/Download: BSP Circular Letter No. CL-2013-037
_______________________________________________________________________________________
PHL banks remain ‘crisis-free’–BSP
Published on Saturday, 13 July 2013 20:19 Written by Bianca Cuaresma

DESPITE the volatility experienced by the financial markets, Philippine banks remained “crisis-free” for the first half of the year, the Bangko Sentral ng Pilipinas (BSP) said late Friday.

BSP Deputy Governor for Supervision and Examination Sector Nestor Espenilla Jr. said the scaling back of the United States’s stimulus program—which caused a lot of volatility in the Philippine financial market in the past weeks—has had no impact on the banks’ “spreads.”

“Spreads—you mean the difference between borrowing and lending? It is not affected because generally, they move together. The impact of the quantitative easing is more on the pattern of interest rates,” Espenilla said on the sidelines of the Rural Bankers’ Association of the Philippines induction of officers.

The deputy governor also said that aside from being resilient from the downside actions of the market, the Philippine banking system has also been growing healthily in the past months.

“First of all, the banking system remains very stable. We have been free from all the crises from other sections,” Espenilla said, when asked about the midyear performance of Philippine banks.

“What we see are that our banks continue to grow, mobilizing deposits lending at a strong rate and are very profitable; so on balance, the banking system is very healthy, whether these are the big banks or the small banks across the board,” he added.

The growth of the Philippine banking system, as seen across the country, is expected to be sustained and to support the growing economy of the Philippines, Espenilla said.

The BSP Monetary Board (MB), in its policy meeting last month, also cited its expected support from the banks in sustaining the robust growth of the country.

“The MB noted that domestic economic growth remains firm, driven by strong internal demand, while leading indicators suggest continued growth momentum. The MB was of the view that ample liquidity and strong bank lending should also continue to support economic activity in the months ahead,” the MB said in the highlights of the meeting released just this week.

The deputy governor also said that banks with retail accounts parked in the central bank’s special deposit account (SDA) are already prepared for the first deadline set in the next two weeks of the phase-down plan laid out by the BSP in May.

The central bank required banks and trust entities to pull out 30 percent of all individual accounts from the SDA window by the end of July as the BSP would only allow pooled funds to be deposited in the SDA facility. Complete pullout must be done by the end of the year.

“The banks are very prepared for this. In fact, the phase-down plan was based on the inputs that they gave us, so we discussed with them how we’d go about unwinding. So, first of all, the first milestone as of end-May, they submitted their plans—everybody did—and we are very confident that this will roll out very smoothly,” Espenilla said.
_______________________________________________________________________________________
BSP: Thrift, rural banks to abide with more stringent rules
Published on Sunday, 14 July 2013 19:54Written by Bianca Cuaresma

THRIFT and rural lenders are now subject to greater disclosure rules and more stringent regulations as their operations expand and become more complex and sophisticated.

This was revealed by Bangko Sentral ng Pilipinas Deputy Governor Nestor A. Espenilla Jr. who noted the operations of some thrift and rural banks under their supervision have scaled up not just in the geographical sense but, most important, in the manner by which they deliver the services rendered to consumers.

Espenilla said rural and thrift banks with more “complex” operations in the country are now subject to higher governance and compliance requirements.

He said the central bank has already formalized classifying thrift and rural banks as simple and complex. He said the general rule for rural and thrift banks have simpler requirements, but the central bank “may escalate those requirements if bank business is becoming that complex.”

“Thrift and rural banks, to give an example, are only required to put up an audit committee. They are not required to come up with other committee such as risk oversight governance committee. But under this regulation…the BSP can classify it as complex, meaning we will put a higher requirement in terms of governance compared to relatively simpler regulations,” Espenilla said.

The deputy governor said rural and thrift banks will be classified as “complex” if they exhibit certain features like complexity of placements, geographic reach or different kinds of customers.

Espenilla said the central bank considers large-scale remittance networks, widespread cross-selling of products that are “relatively complicated” and extensive operations in Luzon, the Visayas and Mindanao as indicators of complex banks.

“If I’m not mistaken, I think we have identified 15 thrift and rural banks that hit that definition,” he said. Under the new central bank requirement, these banks are required to upgrade their corporate governance programs by forming committees that will supervise certain bank aspects. Complex rural and thrift banks are also required to have full-time, dedicated compliance officers.

“So what it means is that today, simpler rural banks only have the audit committee. The normal task of the risk oversight is done by the whole board. Usually small banks have a small board of directors so it’s a way of adjusting the regulations to the nature of the business,” Espenilla said.

“We are just expecting a higher governance and compliance standard of thrift and rural banks that are operating in a more complex way than the usual thrift and rural banks,” he added.

The deputy governor also clarified that the new regulation will not touch on the bank’s capital as it is treated in a separate framework.

“That tells you that rural and thrift banks are basically simple banking. It’s a banking business but it’s relatively simpler,” Espenilla said, when asked why the central bank only found 15 complex banks out of the many thrift and rural banks in the country.
_______________________________________________________________________________________
BSP shutters Quezon-based rural bank
July 12, 2013 8:53pm

The Bangko Sentral ng Pilipinas, through its policymaking body the Monetary Board, has ordered the shutdown of the Quezon Traders Rural Bank of Candelaria in Candelaria, Quezon province, the Philippine Deposit Insurance Corp. (PDIC) said Friday.

In a statement, the state-run deposit insurer said monetary authorities ordered placing the rural bank under receivership by virtue of MB Resolution No. 1122 dated July 11.

The Board shutters banks if they have insufficient liquid assets to meet liabilities or cannot continue doing business without involving losses to depositors or creditors.

The closed bank’s assets—including 582 bank accounts with deposits amounting to P46.56 million—will be managed by the PDIC.

“Upon takeover, all bank records shall be gathered, verified and validated... All valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000," the statement read.

Depositors with balances of up to P15,000 and with no outstanding obligations do not need to file deposit insurance claims.

Meanwhile, those with balances of more than P15,000, holders of certificates of time deposits, and individuals with outstanding obligations with the bank should file their insurance claims not later than third week of July.

“The PDIC will conduct a depositors’ forum on July 17 to inform the depositors of the requirements and procedures for filing deposit insurance claims,” the state insurer said.

The venue and schedule of the forum will be posted within the bank’s premises and on the PDIC web site, www.pdic.gov.ph.

Quezon Traders Rural Bank of Candelaria is the 11th bank to be closed this year.

Other banks are: Capitol City Bank, Inc. (Cavite); the Rural Bank of Gainza (Camarines Sur), Inc.; the Rural Bank of Majayjay (Laguna), Inc.; the Rural Bank of Buenavista (Agusan del Norte), Inc.; La Consolacion Rural Bank (Laguna), Inc.; the Rural Bank of Kinogitan (Misamis Oriental), Inc.; the Cooperative Rural Bank of Bulacan; the Rural Bank of Naval, Inc.; the Rural Bank of Borongan (Eastern Samar), Inc.; and the Rural Bank of San Fernando (Cebu), Inc. — Siegfrid O. Alegado/KBK, GMA News
_______________________________________________________________________________________
Banks sold P15.47-million receivables to BSP in Jan.-May
Published on Wednesday, 10 July 2013 20:02Written by Bianca Cuaresma

LOCAL banks sold so-called receivables worth P15.47 million to the Bangko Sentral ng Pilipinas (BSP) rediscount window in the first five months, representing a decline by 28.2 percent from last year.

The total rediscounting availment of commercial, thrift and rural banks amounted to about P15.47 million from January to June this year, about P6 million lower than the P21.54 million last year.

The rediscounting facility allows qualified banks to obtain loans or advances from the central bank using the eligible papers of its borrowers as collaterals. It is facilitated by the BSP to help banks have enough cash by refinancing loans they extend to their clients.

Bulk of end-June’s availments went to commercial credits at 83.3 percent. Commercial credits are largely attributed to the import and export purchase or sale of goods and products, their transportation to the country or the storing of non-perishable goods as approved by the BSP’s monetary board (MB).

Agricultural and industrial credits, meanwhile, got 2.4 percent of the total availments for the month of May, 7.2 percent went to capital assets expenditure (Capex), 0.4 percent to permanent working capital, 0.1 percent to housing and 6.7 percent to other credit consisting of other services.

The aggregate dollar availments of seven commercial banks and a thrift bank under the Exporters Dollar and Yen Rediscount Facility in the first half of the year compared to the same period last year at $75.6 million. The availment benefitted 28 exporters and represents an 8.1-percent decrease in availments compared to the $82.3 million in the same period last year.

The BSP said the rediscount rates on loan availments for banking institutions for July remain at 3.5 percent for all maturities. This had been in effect since October last year.
_______________________________________________________________________________________
BSP Circular Letter 2013-033: Savings Consciousness Week 2013
Posted: 24 Jun 2013 10:36 PM PDT

Dear RBAP Members

For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular Letter 2013-033: Savings Consciousness Week 2013.

The Circular and prescribed tarpaulin layout for the campaign is posted in the BSP website

Thank you.

View/Download BSP Circular Letter 2013-033
_______________________________________________________________________________________
BSP shuts down Cebu-based rural bank
ABS-CBNnews.com
Posted at 07/05/2013 3:07 PM | Updated as of 07/05/2013 3:44 PM

MANILA -- The Philippine Deposit Insurance Corp. has taken over the Rural Bank of San Fernando (Cebu) Inc. on Friday, after it was placed under its receivership by the central bank's Monetary Board.

The shuttered bank, which has its sole unit located in San Fernando in Cebu, has 3,341 accounts with total deposit liabilities of P83.41 million as of end-2012, PDIC said.

Almost all (99.76%) or 3,333 accounts have balances of P500,000 and below, while total insured deposits amounted to P76.81 million or 92.09% of the total.

PDIC said it will be verifying and validating all bank records and those found valid shall be paid up to the maximum deposit insurance coverage of P500,000.

The state insurer will hold a depositors-borrowers forum on July 10 for clients of the Rural Bank of San Fernando (Cebu) as it aims to mail deposit claims as early as this month
_______________________________________________________________________________________
BSP: Small banks may now sell financial products
Rural customers may take out loans, insurance policies
By Paolo G. Montecillo
Philippine Daily Inquirer

Rural and thrift banks are now allowed to sell financial products such as insurance plans and credit cards of their sister firms, according to the central bank.

The cross-selling of products was formerly restricted to universal banks, under the Bangko Sentral ng Pilipinas’ (BSP) previous guidelines. By allowing the small banks to deal in financial products, the BSP hopes to curb the activities of loan sharks and improve access to formal financial services in the Philippines, where over a third of the population is still considered “unbanked.”

“This reform initiative makes available to consumers a broader array of financial products using the existing branch network of the banking system,” BSP Amando M. Tetangco Jr. earlier said. The changes in cross-selling rules were initially announced last month.

Cross-selling is an international practice that separates the production of a financial product or service from its distribution. Under the guidelines approved by the BSP’s Monetary Board, bank premises are used as access points for financial products offered by related parties.

Under the new set of rules, all types of banks may now cross-sell credit cards and auto, home mortgage, personal and other retail loans; term, life, non-life and other protection-type insurance products; cash, debit and related products; and other similar financial instruments that may be authorized by the BSP.

While all types of banks are now covered by the new rules, the BSP said a lender would still need to maintain a CAMELS rating of at least “3” before it can engage in cross-selling.
_______________________________________________________________________________________
Rural banks find CAR steep

RURAL BANKS have raised concerns the capitalization requirements of the Bangko Sentral ng Pilipinas (BSP) are too steep, damaging their competitiveness.

The 8% capital adequacy ratio (CAR) used worldwide for rural banks is “enough,” and the 10% mandated by the BSP is “too high,” Bangko Magsaysay (Isabela), Inc. President Michael C. Agustin said in an e-mail.

The CAR, which measures a bank’s capital against the risks it takes, is one of the main indicators of financial health, employed by the central bank to monitor the industry. Enough capital means banks have enough assets to meet obligations and absorb shocks.

At 10%, the CAR imposed on rural banks is level with those for universal and commercial banks, which have larger operations, Mr. Agustin said.

“Commercial banks are already full-sized banks with departments to construct and to have separate ‘working’ committees,” he explained.

“A single rural bank does not have the capacity to have additional departments and have separate employees just to handle separate committees.”

Mr. Agustin said the steep CAR is preventing rural banks from giving out more loans to clients, especially those unreachable by universal and commercial banks.

“If the government wants to support our [fellow Filipinos] in the countryside, the first step is support the rural banks, train them, partner with them in achieving a common goal, which is to improve lives in these far-flung places,” he said.

Vittorio Z. Almario, Rural Bank of Mati, Inc. president, shared the same sentiments towards the CAR.

“A compensating mechanism to retain the competitiveness of rural banks is needed, or the CAR can be lowered,” Mr. Almario said in an e-mail.

If the BSP is not open to adjusting the CAR, he suggested the regulator could instead provide a simpler compliance framework, tax deductions for loan-loss provisions or looser capital requirements for branching.

Meanwhile, Enrique P. Abellana, president of Rural Bank of Barili, Inc. identified possible criteria that could mitigate the capitalization requirements for rural banks: location and size.

“The higher the classification would require the 10% CAR,” he said.

Smaller banks and those in 4th- and 5th-class municipalities, on the other hand, should have lower CARs, especially if they have a non-performing loan (NPL) ratio of 5% or less, loan-to-deposit ratio (LDR) of not more than 50% and positive income, all in the past five years.

The NPL ratio measures how much of the total loan portfolio is comprised of bad loans, or those unpaid at least 30 days after their due date. The LDR indicates a bank’s liquidity.

The BSP, however, is not budging on its rules.

“We have no plans to change current requirements,” BSP Deputy Governor Nestor Espenilla, Jr. said in a text message yesterday.

The BSP put the 10% CAR in place in 2001, in an amendment to Republic Act No. 8791 or the General Banking Law of 2000.

It states that a bank may be required to convert its profits into capital and may be prevented from having other additional major assets or investments should they fail to reach the required capital.

GM Bank of Luzon, Inc. President Tomas S. Gomez IV sided with the regulator, saying the 10% CAR is a necessary measure benefiting clients and banks themselves.

“The required CAR of 10% for rural banks is just right. There is no need to adjust it,” he said.

Mr. Gomez said the ratios are in place to protect the depositing public.

“A higher ratio is an indicator of strength and better ability to confidently absorb occasional shocks.”

On the issue of fairness, he pointed out, “The 10% CAR being a ratio is already proportional -- banks with bigger assets like commercial banks have to hold higher absolute amounts of capital versus smaller banks.”

Moreover, the stringent capitalization requirements helped local banks escape the 2008 financial crisis unscathed, Mr. Gomez said.

“It is now a known fact, that Philippine banks were able to withstand the financial crisis, and a higher industry CAR is a major contributing factor.”

He said the 10% CAR should not pose a threat to rural banks because the industry exceeds this requirement regularly. “The rural bank sector-wide CAR over the last five to seven years has been steady at 17%.”

At this level, he said, rural banks can weather both local and global crises while growing loan portfolios and expanding branch networks. -- Lloyd Edgar G. Reyes

_______________________________________________________________________________________
More Pinoys embrace microinsurance
Posted: 27 Jun 2013 06:54 PM PDT

Our kababayans are beginning to understand and adopt the concept of insurance, as the Department of Finance (DOF) recently said that the number of Filipinos who own microinsurance policies have more than doubled as of end-2012 compared to 2010 figures.

As of end of last year, the DOF said that there were 12.9 million Filipinos who own microlife and nonlife insurance policies, as against six million policyholders in 2010. In effect, the figure signifies the credible job that rural banks have been doing in educating and reaching out to the underprivileged sector regarding the importance of microinsurance.

This significant growth can also be attributed to rural banks gaining much support from the government, by encouraging private entities to offer insurance products that cater to the needs and meet the limited financial capabilities of the poor, especially to those who had no previous access to microinsurance.

Being from the same community as its target market, rural banks—in general—are in a better position to understand the specific needs of the rural communities. As such, they have been permitted to act as agents of microinsurance products through the Bangko Sentral ng Pilipinas (BSP) Circular 683, series of 2010. This authority allowed rural banks to serve as channel partners on microinsurance, facilitate client’s enrollment and collect premiums and claims administration.

Meanwhile, the technical research arm of the Rural Bankers Association of the Philippines—Rural Bankers Research and Development Foundation Inc. (RBRDFI)—has also played an active role in preparing rural banks to be effective agents of microinsurance by facilitating technical assistance and knowledge transfer.

The trainings being conducted by the RBRDFI are designed to benefit rural banks that want to improve the ways they market and sell microinsurance. They focus on how rural banks can help people regard microinsurance as an effective safety net during times of contingencies. Viable strategies are also discussed on how to market microinsurance, and to better educate clients about the benefits of microinsurance.

RBRFI has also developed an extensive Microinsurance Development Toolkit, otherwise known as Ladders, that contains resources to help member-rural banks in developing and improving their microinsurance program from the “learning microinsurance” to further “strengthening” their business. It also includes the Microinsurance Literacy Toolkit, which is a set of customizable materials that are available in English and Filipino that member-rural banks can use to maximize their potential for success in providing microinsurance value to their clients.

Best industry practices around the globe are also shared during these seminars, which include the use of technologies to expand access to microinsurance.

The use of appropriate technology is very crucial not only in reaching out to the potential markets in far-flung areas, but also in bringing down the administrative costs for rural banks. One such technology that is commonly utilized is mobile banking.

As of May 2013, under the microinsurance initiative of RBRDFI, a total of 207 rural banks and 460 staff and officers have been trained in the two-day Basic Microinsurance Training course. In addition, 80 rural banks have been assisted in different stages of obtaining license from the Insurance Commission (IC) and accreditation from the BSP. Thirty-nine rural banks have already been issued microinsurance agent licenses by the IC, and 32 rural banks have been authorized by the BSP to apply for a microinsurance agent license.

The government is now in the middle of a huge financial literacy campaign to promote microinsurance among the poor. Foreign analysts have already cited the Philippines as one of the best enabling environments to support microinsurance in the world with good collaboration between government agencies and the private sector. Rural banks are a good reason for this.

With more than 2,700 branches and other banking offices and more than six million clients and another 10 million household members, the rural banking industry is one of the best distribution points for microinsurance in the country.

Published in The Manila Times, 27 June 2013
_______________________________________________________________________________________
BSP Circular No. 799: Rate of Interest in the absence of stipulation
Posted: 27 Jun 2013 07:28 PM PDT

Dear RBAP Member,
For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular No. 799: Rate of interest in the absence of stipulation.

The said circular is also posted in the BSP Website

View/Download BSP Circular No. 799
_______________________________________________________________________________________
Advanced Course on Property Appraisal – Aug 02-03, 2013
Posted: 24 Jun 2013 08:56 PM PDT

Date: August 2-3, 2013 (Friday-Saturday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Engr. Ferdinand Bocobo
Senior Property Manager, BDO

Seminar Fee:

1. Early bird – P4,200 (on or before July 12, 2013)
2. Regular Rate – P4,600 (after July 12, 2013)
3. Non-Member/Delinquent – P5,520

Mode of Payment

• A Non-Refundable commitment fee of P2,300.00 per participant.
• Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Training Policies:

1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations.

RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations.

Deadline for submission of registration is not later that July 29, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or July 19, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: - This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only
b) 3 days prior to the seminar date is entitled for a half refund * Regular Rate only
c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)
d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies

Lectures & Actual Computations

Expected Participants

Appraisers,

Course Outline

PART I: Salient Features of Republic Act 9646

A. Continuing Education Requirements under D.A.O. No. 3 Series of 1999
B. Salient Features if the I.R.R. Of the RESA 9646
C. Overview of the Philippine Valuation Standards (PVS)

PART II: Review of the Sales Comparison and Cost Approach

A. Other Primary Methods of Valuation
a. Valuation by Allocation
b. Valuation by Extraction / Abstraction
c. Valuation by Inferential and Rectification
d. Stripping Method of Valuation
e. Valuation by Plottage and Assemblage
f. Valuation by Averaging
g. Ground Rent Capitalization
h. Valuation by Discounted Cash Flow

B. Income Approach
a. Land Residual Technique
b. Building Residual Technique
c. Property Residual Technique

C. Hypothetical Subdivision Development Technique

PART III: Sample Problems

Download the Confirmation Sheet in PDF
_______________________________________________________________________________________
BSP Circular Letter 2013-033: Savings Consciousness Week 2013
Posted: 24 Jun 2013 10:36 PM PDT

Dear RBAP Members
For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular Letter 2013-033: Savings Consciousness Week 2013.
The Circular and prescribed tarpaulin layout for the campaign is posted in the
BSP website
Thank you.

View/Download BSP Circular Letter 2013-033
_______________________________________________________________________________________
BSP supervises 27,221 financial institutions — central bank data
June 23, 2013 6:54pm

The Bangko Sentral ng Pilipinas supervises and regulates 27,221 financial institutions as of March this year hit 27,221, according to updated data from the BSP’s Supervision and Examination Sector (SES).

Of the total, 17,740 are non-bank financial institutions. Four are offshore banking units, and the rest—9,477—are banks.

Non-bank financial institutions

Among the 17,740 non-bank financial institutions, 6,408 are head offices. The rest are bank branches or other offices. The non-bank financial institutions without quasi-banking functions number 17,664, composed of 6,395 head offices and 11,269 branches or other offices. The remaining 76 non-bank financial institutions, including 13 head offices, have quasi-banking functions.

Institutions without quasi-banking functions include non-stock savings and loan associations (196 in total) and pawnshops (17,408).

Banks

Of the country's 9,477 banks, 5,182 are universal and commercial banks (U/KBs), 1,641 are thrift banks, and 2,654 are rural and cooperative banks.

Of the U/KBs, 4,653 are universal banks and 529 are commercial banks. Included in the universal banks are 4,176 private domestic banks, of which 11 are head offices; 460 government banks, including three head offices; and 17 branches of foreign banks, six of which are head offices.

Among commercial banks, 437 are private domestic banks, withsix head offices. Another 79 are subsidiaries of foreign banks, including two head offices; and 13 are branches of foreign banks including eight head offices.

In the rural and cooperative banks category, 2,490 are rural banks (including 544 head offices) and 164 are coop banks including 37 head offices. — BM, GMA News
_______________________________________________________________________________________
Signature Verification, Forgery & Counterfeit Detection Seminar – July 31 – Aug 01, 2013
Posted: 18 Jun 2013 08:20 PM PDT

Signature Verification, Forgery and Counterfeit Detection Seminar

Date: July 31 – August 1, 2013 (Wed-Thu)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Ms. Jennifer Dominguez
& Ms. Julie Santiago
Question Document Examiners, NBI

Seminar Fee:
1. Early bird – P3,800 (on or before July 12, 2013)
2. Regular Rate – P4,200 (after July 12, 2013)
3. Non-Member/Delinquent – P5,040

Mode of Payment
• A Non-Refundable commitment fee of P2, 100.00 per participant.
• Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Training Policies:

1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations. RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations.

Deadline for submission of registration is not later that July 26, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or July 16, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: - This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only
b) 3 days prior to the seminar date is entitled for a half refund * Regular Rate only

c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)

d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies

Lecture and Discussions

Expected Participants

Bank Teller, Cashier,
Account Officers, Loan Officers

Objective
For the participants to be aware of the significance of handwriting identification and other aspects of questioned documents examination to related areas in their chosen field;

Course Outline

Module 1: Signature Verification and Forgery Detection
a. Handwriting Impressions
1) Manual operation of the hand and the brain
b. Typewriting and Printing Impressions
2) Machine produced impressions
3) Miscellaneous Aspects
4) Alterations
5) Sequence of strokes, etc

Module 2: Fraud Detection and Prevention
a. Elements of Fraud
b. Prevention Techniques
c. Internal Control System

Module 3: Counterfeit Detection (PESO BANKNOTES)

Module 4: Counterfeit Detection (DOLLAR BANKNOTES)

Download the Confirmation Sheet in PDF
_______________________________________________________________________________________
BSP Memorandum M-2013-026: Report on the Inventory of Bank Network.
Posted: 18 Jun 2013 08:27 PM PDT

Dear RBAP Members:

For your guidance, attached is Bangko Sentral ng Pilipinas Memorandum M-2013-026: Report on the Inventory of Bank Network.

The Memorandum is also posted in the BSP Website.
View/ Download BSP Memorandum M-2013-026
_______________________________________________________________________________________
Advanced Course on Property Appraisal – Aug 02-03, 2013
Posted: 18 Jun 2013 08:56 PM PDT

Advance Course on Property Appraisal

Date: August 2-3, 2013 (Friday-Saturday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Engr. Ferdinand Bocobo
Senior Property Manager, BDO

Seminar Fee:
1. Early bird – P4,200 (on or before July 12, 2013)
2. Regular Rate – P4,600 (after July 12, 2013)
3. Non-Member/Delinquent – P5,520

Mode of Payment
• A Non-Refundable commitment fee of P2,300.00 per participant.
• Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Training Policies:

1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations. RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations.

Deadline for submission of registration is not later that July 29, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or July 19, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: - This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only
b) 3 days prior to the seminar date is entitled for a half refund * Regular Rate only
c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)
d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies

Lectures & Actual Computations

Expected Participants

Appraisers,

Course Outline

PART I: Salient Features of Republic Act 9646
A. Continuing Education Requirements under D.A.O. No. 3 Series of 1999
B. Salient Features if the I.R.R. Of the RESA 9646
C. Overview of the Philippine Valuation Standards (PVS)

PART II: Review of the Sales Comparison and Cost Approach
A. Other Primary Methods of Valuation
a. Valuation by Allocation
b. Valuation by Extraction / Abstraction
c. Valuation by Inferential and Rectification
d. Stripping Method of Valuation
e. Valuation by Plottage and Assemblage
f. Valuation by Averaging
g. Ground Rent Capitalization
h. Valuation by Discounted Cash Flow

B. Income Approach
a. Land Residual Technique
b. Building Residual Technique
c. Property Residual Technique

C. Hypothetical Subdivision Development Technique

PART III: Sample Problems

Download the Confirmation Sheet in PDF
_______________________________________________________________________________________
Bad weather hikes bad loans of rural banks
BY RAPPLER.COM
POSTED ON 06/18/2013 6:32 PM | UPDATED 06/18/2013 7:53 PM

MANILA, Philippines - Bad weather increased the bad loans of rural and cooperative banks in 2012.

Typhoons Gener and Helen (international codename: Saola and Kai-tak) and monsoon rain that inundated parts of the country in July and August affected the ability of clients of rural and cooperative banks to service their debts, according to the Bangko Sentral ng Pilipinas (BSP).

Non-performing loans (NPL) of these banks increased to 11.57% at end-2012 from 10.14% at end-2011, according to the data that the BSP released on Tuesday, June 18.

This is equivalent to P14.75 billion NPLs out of the P127.47 billion total loan portfolio of the rural banks in 2012.

Loans become non-performing if they are unpaid within or more than 90 days after they are due.

Despite the increase in NPL ratio, the BSP highlighted the 11.38 percentage points increase in the banks' loan loss reserves for NPLs as an indication to "heightened prudence (of the banks) against credit losses."

Loan loss reserves, which reflect the amount of funds the banks set aside as buffer in case the NPLs eventually don't get paid, rose to 61.74% at end-2012 from 50.36% a year ago.

Rural banks posted a 10.65% NPL ratio at end-2012, higher than the 10.32% in 2011. Loan loss reserves increased to 59.47% from 47.94%.

Cooperative banks, on the other hand, saw their NPL ratio doubling to 19.84% from 8.58%. However, loan loss reserves slipped to 72.7% from 75.3%.

"The Bangko Sentral ng Pilipinas continues to proactively monitor the NPLs of the various segments of the banking sector to ensure that credit underwriting standards remain high in a low interest rate environment," the bank said in a statement. - Rappler.com
_______________________________________________________________________________________
BSP accredits 8 Rural Banks
By Lee C. Chipongian
Published: June 17, 2013

The Bangko Sentral ng Pilipinas (BSP) has approved and listed eight rural and thrift banks as accredited rural financial institutions (ARFIs) under the amended Agri-Agra law (Republic Act 10000).

Banks certified as ARFIs meant that the loan portfolio of these banks have been found to be compliant with BSP regulations and under the provisions of RA 10000.

BSP Deputy Governor Nestor A. Espenilla Jr. said however that the accreditation “does not serve as an endorsement by the BSP” but merely an indication that the eight rural banks passed qualification requirements.

The eight rural and thrift banks are Rural Bank of Kiamba, Producers Savings Bank, Rural Bank of Barili (Cebu), Rural Bank of Sta. Catalina, Philippine Resources Savings Bank Corp., Rural Bank of Pilar (Bataan), Common Wealth Rural Bank and Rang-Ay Bank Inc. Four of these eight banks have been previously accredited last year.

“The accreditation cannot be used for any purpose other than for implementing the provisions of the Agri-Agra law (Agri-Agra Reform Credit Act of 2009) and its related rules and regulations,” said Espenilla.

A memo from the BSP clarified that under existing regulations, the lending or investing bank is required to disclose its Agri-Agra report to ensure that the said ARFI should be lending or investing to utilize its exposure for Agri-Agra compliance.

“Such exposure to the ARFI will be eligible for determining compliance with the agri-agra requirement for as long as the ARFI remains accredited with the BSP,” said Espenilla.

The BSP amended its circular detailing the rules and regulations of RA 10000 which repealed Presidential Decree 717 in 2011 and listed alternatives for banks for easier compliance such as investments in housing and education/medical bonds and microbusinesses even if these are not agri-agra related.

The new law has rationalized compliance by banks. It has retained the mandatory requirement of 25 percent that banks will set aside as loanable funds for agriculture and fisheries. Of the 25 percent, 10 percent are for agrarian reform-related loans.

In rationalizing modes of compliance, aside from the direct compliance through loans to qualified borrowers, the alternative loans are wholesale lending to and/or investments in ARFIs, investments in bonds that are declared eligible by the Department of Agriculture (DA) in consultation with the Department of Agrarian Reform, loans for construction and upgrading of infrastructure that will benefit the agri-agra as well as loans to the National Food Authority (NFA) and NFA-registered warehousemen, millers and wholesalers.

The BSP will approve and list the ARFIs while the DA will accredit non-bank rural financial institutions such as cooperatives, microfinance non-governmental organizations, among others.
_______________________________________________________________________________________
Healthy, Sustainable Rural Banks
Posted: 17 Jun 2013 12:12 AM PDT

Inclusive growth has been defined by the National Economic Development Authority (NEDA) as a sustained growth that creates jobs, draws the majority into the economic and social mainstream, and continuously reduces mass poverty. To achieve this goal, development in rural areas has become imperative.

Also, the presence of sustainable rural banks and its financial services is as equally important, as it can provide the countryside much-needed investments to spur local economic development. In this year’s Annual National Convention of the Rural Bankers Association of the Philippines (RBAP), the theme was “Rural Banks: Championing Inclusive Growth in an Exclusive World of Banking,” stressing the critical role of rural banks as forerunner in promoting inclusive growth.

Rural banks can contribute to inclusive growth efforts of the government, having sufficient capital to provide its clientele banking services responsive to its needs, and reach out to the unbanked and underserved population. The recent passage of Republic Act (RA) 10574, or the law allowing the entry of foreign investments in rural banks, has opened the floodgates of the industry to an additional source of capital to expand its services, and contribute in creating a financially inclusive countryside.

Rural banks, as mandated by law, primarily serve the agriculture and fisheries sector, which contributed 11 percent of the growth domestic product (GDP) of the country in 2012. Despite contributing a large chunk to the country’s domestic product, it is notable that the GDP contribution of the sector continues to decline over the years.

The agriculture sector also is the second-largest generator of employment in the country. And it is notable that workers in the sector are also among the poorest. Investments in the sector can make a difference not only in the country’s production but poverty alleviation as well.

Just like any sector, the agricultural and fisheries sector need sufficient funding to hasten its growth. The presence of sustainable rural banks capable of providing much-needed capital to boost agricultural activities can economically empower farmers, fisher folk and small entrepreneurs, and stir economic activities in the rural areas.

A healthy rural bank can enable countryside development. With laws such as RA 10574, rural banks are taken one step closer to effectively fulfilling its mandate of serving farmers, fisher folks and small enterprises that are major contributor to the local economies and of the national economy as a whole.

The country posted a surprising economic growth for the first quarter of the year, surpassing our neighboring countries such as China, Indonesia, Thailand and Vietnam. With sound economic government policies supporting countryside development, these numbers can still be improved, and reflect inclusive growth in the country.

Published in The Manila Times, 13 June 2013
_______________________________________________________________________________________
33rd Mindanao Credit Management Conference – August 22-23, 2013
Posted: 16 Jun 2013 09:50 PM PDT

To All Participating Rural Banks:

We are inviting you to the 33rd Mindanao Credit Management Conference scheduled on August 22-23, 2013 at Dotties Place, Samping Ave., Butuan City.

Please take a moment to view this 3 minute video and see what’s in store with your attendance.

Join us as Mindanao Rural Bankers ” Build Routes for Economic Progress”.

http://www.youtube.com/watch?v=kKvmuAEg16M&feature=youtu.be
_______________________________________________________________________________________
BSP Circular Letter No. CL-2013-032 – Accredited Rural Financial Institutions for the Purpose of Implementing the Agri-Agra Reform Act of 2009
Posted: 17 Jun 2013 12:03 AM PDT

Dear RBAP Members:
For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular Letter No. CL-2013-032: Accredited Rural Financial Institutions for the Purpose of Implementing the Agri-Agra Reform Act of 2009 Pursuant to Circular No. 736 of 20 July 2011.

The Circular Letter is also posted in the BSP Website
View/Download BSP Circular Letter No. CL-2013-032
_______________________________________________________________________________________
BSP MEMORANDUM NO. M-2013-017 – Enhancements to the Risk-Based CAR Report in Relation to Recently Issued Regulations
Posted: 13 Jun 2013 12:38 AM PDT

Dear Member-Rural Banks,

Attached for your guidance is the Memorandum to All Stand Alone Thrift Banks, Rural Banks and Cooperative Banks on the enhancement to the Risk-Based Capital Adequacy Ratio (CAR) Report in relation to recently issued regulations dated 7 May 2013. The said template shall be adopted starting with the reporting period ended 30 June 2013.

Memorandum No. M-2013-017 is also posted in BSP’s website at http://www.bsp.gov.ph/downloads/regulations/attachments/2013/m017.pdf. The prescribed data entry template and its corresponding control prooflist to facilitate the electronic submission are to be directly accessed and downloaded from http://www.bsp.gov.ph/frp/templates.
_______________________________________________________________________________________
Speakers’ Presentations – 60th RBAP Annual National Convention
Posted: 13 Jun 2013 05:53 AM PDT

Dear RBAP Members:
For your reference, we have uploaded the presentations of the speakers in our 60th Annual National convention last 10-11 June 2013 at Sofitel Plaza Manila.

View / Download:
Speakers’ Presentations Day 1 (June 10, 2013)
Speakers’ Presentations Day 2 (June 11, 2013)
_______________________________________________________________________________________
Dear Batangas Rural Bankers,

Attached for your guidance is the Memorandum to All Stand Alone Thrift Banks, Rural Banks and Cooperative Banks on the enhancement to the Risk-Based Capital Adequacy Ratio (CAR) Report in relation to recently issued regulations dated 7 May 2013. The said template shall be adopted starting with the reporting period ended 30 June 2013.

Memorandum No. M-2013-017 is also posted in BSP's website at http://www.bsp.gov.ph/downloads/regulations/attachments/2013/m017.pdf. The prescribed data entry template and its corresponding control prooflist to facilitate the electronic submission are to be directly accessed and downloaded from http://www.bsp.gov.ph/frp/templates.

This template is also available in our official RBAP website at http://www.rbap.org

Kindly acknowledge receipt of this e-mail.

Thank you.

Michelle Syonne M. Reyes
Research and Communications Specialist
_______________________________________________________________________________________
BSP revises cross-selling framework for banks
Published on Tuesday, 11 June 2013 20:05
Written by Bianca Cuaresma

BANKING groups and other financial conglomerates can now use their premises to market and sell financial products across their network, the Bangko Sentral ng Pilipinas (BSP) said on Tuesday.

In a statement, the BSP’s Monetary Board (MB) said it has revised the cross-selling framework for banks and liberalized rules allowing products previously unique to one lender to be offered to sister-banks or banks under the same group or conglomerate.

Cross-selling is an international practice that creates a distinction from the production of a financial product or service to its distribution.

“Originally, for a bank to be able to distribute an insurance product from an entity, the bank [that wants to distribute the product] must be an investor…5 percent is the minimum [required for investment],” BSP Deputy Governor Nester Espenilla Jr. said on the sidelines of the 60th annual convention of the Rural Bankers Association of the Philippines.

“Now, we changed that in the context of financial groups or conglomerates,” he added.

For example, Espenilla said, if the parent in a banking group is a universal bank and the subsidiary is a thrift lender, the latter can be used to distribute some of the former’s products and vice-versa.

“This reform initiative makes available to consumers a broader array of financial products using the existing branch network of the banking system,” BSP Governor Amando M. Tetangco Jr. said in the statement.

The BSP said that while documentary requirements have been streamlined, governance standards have been strengthened. It added that an oversight-handling mechanism specific to cross-selling is included in the revised rules.

“BSP is cognizant of the need to sustain high standards of risk management. This is the reason why we limit the products to those without investment risk and allow only banks with a CAMELS rating of at least 3 to perform cross selling,” Tetangco said.

CAMELS is a BSP system that rates banks on their capital adequacy, asset-quality management earnings, liquidity and sensitivity to market risk.

“Banks may now cross-sell credit cards and auto, home mortgage, personal and other retail loans; term, life, non-life and other protection-type insurance products; cash, debit and related products; and other similar financial instruments that may be authorized by the MB,” the BSP said.
_______________________________________________________________________________________
RURAL BANKS must reach out further in order to contribute to inclusive growth, officials said in an industry conference yesterday.

“Clearly, there is a need to extend our reach to the unbanked and the underbanked. To have a bigger role in making this possible, rural banks need to scale up their operations and consider programs that will empower them to do so,” Nestor A. Espenilla, Jr., deputy governor of the Bangko Sentral ng Pilipinas (BSP), said in a speech delivered on behalf of BSP Governor Amando M. Tetangco, Jr. at the Rural Bankers Association of the Philippines’ (RBAP) 60th Annual National Convention at the Sofitel Philippine Plaza in Manila yesterday.

In the Philippines, inclusive growth -- one that is rapid, sustained as well as generates employment and reduces poverty -- is possible only if countryside development is given the support it needs, he said.

Rural banks are in the best position to help spur rural development as they part of the communities in which they operate, Mr. Espenilla added. However, to effectively service the “traditionally unbanked” segment, which is the key mandate of rural banks, these institutions must beef up operations further, he said. To create stable and stronger banks, he said, “mergers could be the path to take,” but noted that “due diligence in the selection of possible investors should be part of the process.”

Last month, President Benigno S. C. Aquino III signed into law Republic Act No. 10574, amending the Rural Act of 1992 by allowing foreign investors to own, acquire or purchase up to 60% of a voting stock in a rural bank.

The central bank, along with the Philippine Deposit Insurance Corp. has launched the “Strengthening Program for Rural Banks (SPRB) Plus,” which is an enhancement of SPRB, a P5-billion program initiated in August 2010 to encourage healthy rural banks to come to the aid of troubled peers.

In a presentation during the same event, National Economic and Development Authority Deputy Director General Emmanuel F. Esguerra said: “Rural finance is critical for rural development and poverty reduction.”

“Rural banks play an important role not only in financing agriculture, but also micro small and medium enterprises, which is a critical driver for the creation of high quality jobs,” he said.

However, Bangko Kabayan Corporate Planning Head and Marketing Manager Fides Ganzon-Ofrecio noted that to be able to effectively serve the public, rural banks must improve operations. Among others, she noted that rural banks must know the target market and accurately identify needs.

“Relentless innovation to improve performance of a bank is an essential element of sustained business success. Needs of customers keep changing, so banks need to keep on innovating,” she said. “We need to understand what they (customers) need. Listening to your clients will also help a bank acquire new clients.” -- A. R. R. Gregorio
_______________________________________________________________________________________
BSP pushes Rural Bank mergers

The Bangko Sentral ng Pilipinas (BSP) is pushing more rural banks to consider mergers for a “stronger and more inclusive” sector especially now that foreign ownership has been increased.

“(The) rural banking sector enjoys broad-based support -- from President Benigno Aquino III and the legislators who worked together on the ground-breaking law that allows foreign equity into rural banks; to local universal and commercial banks and other banks who work with rural banks; to international organizations and grant-giving agencies; and national institutions including the PDIC (Philippine Deposit Insurance Corp.) and the BSP,” said BSP Governor Amando M. Tetangco Jr. in a speech delivered by BSP Deputy Governor Nestor A. Espenilla Jr. yesterday during the Rural Bankers Association of the Philippines’ (RBAP) annual national convention.

“It is clear, we all want the rural banking sector to succeed,” said Tetangco, citing that 40 percent of the population are in urban areas reached only by rural banks. This is where the sector can offer support in promoting inclusive growth and countryside development. Tetangco said it is perfect timing now to consider merger deals since with the passage of Republic Act 10574 last May, the infusion of foreign equity in rural banks will ensure further growth. Plus, with the P5 billion BSP and PDIC-jointly funded Strengthening Program for Rural Banks(SPRB), it gives more support for rural banking sector consolidation. “Add to this the BSP’s Prompt Corrective Action (PCA) program that helps banks identify areas for improvement to head off potentially debilitating concerns,” said the BSP chief.

Tetangco encourages rural bank owners to make a “shift” in their mindset to accelerate inclusive growth and increase the sector’s resources and to take advantage of the support and opportunities given them by the government and other organizations.

“Our efforts to promote mergers and consolidation have yet to produce the results we look forward to. While we continue to receive applications for incentives under the BSP-PDIC SPRB, the reality is less than 20 percent of available funding for capital build-up has been utilized,” said Tetangco.

“We understand that there are concerns related to mergers and having new stockholders into your banks. However, if your vision is to see your bank scale up and grow as catalyst for growth in your communities, mergers could be the path to take. Of course, due diligence in the selection of possible investors and partners should be part of the process,” Tetangco added.

RBAP President Edward Leandro Z. Garcia Jr. in the meantime said the rural banking sector have been improving its products, services and technology to ensure they will continue providing financial serviced to the country’s unbanked areas.
“For decades, the industry has served the farthest areas in the country. As such, we continuously innovated and customized our services to cater not only the unique banking needs of our patrons but also to reach out and involve the unbanked and underserved,” said Garcia.
_______________________________________________________________________________________
CERTIFICATES OF CANDIDACY RECEIVED FOR 2013 RBAP ELECTIONS
Posted: 07 Jun 2013 02:07 AM PDT

Dear RBAP Members:

For your guidance, attached is the list of Certificates of Candidacy received for 2013 RBAP Elections.

View/ Download LIST OF COCs 2013
_______________________________________________________________________________________
BSP Comparative Median Rates on Savings Deposits Across Provinces – 4th Quarter 2012
Posted: 06 Jun 2013 01:55 AM PDT

Dear All,

Attached is the BSP Survey Results: Comparative Median Rates Per Province for 4th Quarter 2012.

This is also posted in the BSP website, www.bsp.gov.ph.

View / Download BSP Comparative Median Rates 4th qtr 2012
_______________________________________________________________________________________
Corporate Governance for RB Directors – BAGUIO
Posted: 04 Jun 2013 01:52 AM PDT

Dear Fellow Rural Bankers:

The Rural Bankers’ Research and Development Foundation, Inc. (RBRDFI) and the Federation of Baguio Benguet and Mt. Province Rural and Cooperative Banks are pleased to announce that they will conduct a seminar workshop, as part of the continuing strategy to strengthen the rural banking industry.

COURSE TITLE : Corporate Governance and Risk Management for RB Directors
VENUE : Golden Pine Hotel and Restaurant,
Cor. Carino & Yandoc St., Baguio City
SCHEDULE : July 12 – 13, 2013 (Friday and Saturday)
DURATION : 2 days
REGISTRATION FEE : Five Thousand Two Hundred Pesos (P5,200.00) per participant. (Registration Fee includes snacks, lunch, training kit and certificate of attendance)

For your reservations, kindly submit the following to us not later than July 1, 2013:
1. A non-refundable commitment fee of P2,600 per participant (50% of the registration fee). Payments can be remitted to the account of Richard Narvaez, Banco de Oro – SM Baguio Branch, account no. 1830009352. Proof of payment (i.e., deposit slip) should be sent immediately for verification through facsimile number (074) 422-1333.
2. Nomination form of the participant (s) duly endorsed by the bank’s authority.
3. Filled-up Participant’s Profile.

Travel expenses to and from the venue shall be borne by the participants. Kindly note that this is a live out seminar. Please be advised that we will be accepting up to forty (40) participants only on a first-come-first served basis.

Participants who have paid but fail to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee.

For your reservation, please call any of the following:
Richard Narvaez 09175048373 Marie Luz Capuyan 09189258770
Mary Ann Nadunop 09285065183

Thank you very much.

MARIE LUZ T. CAPUYAN
Federation President

Download Confirmation Sheet in PDF
_______________________________________________________________________________________
Submission of 2nd Quarter Deposit Interest Rates – July 8, 2013
Posted: 03 Jun 2013 01:51 AM PDT
03 June 2013

Dear RBAP Members, Federation and Confederation Presidents:

As part of our commitment with the Bangko Sentral ng Pilipinas, we would like to remind you of the submission of deposit interest rates for the Second Quarter of 2013.

The deadline for the submission of the Second Quarter Deposit Interest Rates is on July 8, 2013 (Monday). Kindly see attached file for the prescribed format of the data.

Please submit your Second Quarter Deposit Interest Rates atinfo@rbap.org or at kristine_rbap@yahoo.com. You may also send it through fax at 527-2980 / 527-2969.

To Federation and Confederation Presidents, kindly remind your members to submit their data on or before the set deadline of submission so their data will be included in the consolidated RBAP report that will be submitted to the BSP.

We hope for everyone’s cooperation on the matter.

Thank you very much.

Download Template- Deposit Interest Rate 2nd Qtr
_______________________________________________________________________________________
RBAP 60th Annual National Convention Program
Posted: 03 Jun 2013 01:49 AM PDT

Dear RBAP Members:

For your guidance, attached is the Program for the RBAP 60th Annual National Convention on June 10-11, 2013 at Sofitel Philippine Plaza, Manila.

View/Download RBAP 60th Annual National Convention Program
_______________________________________________________________________________________
Delinquency & Fraud Management Training – Jul 05 -06, 2013
Posted: 03 Jun 2013 01:46 AM PDT

Delinquency and Fraud Management Training

Date: July 5-6, 2013(Friday-Saturday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: MR. NOEL J. PANELO,
Consultant, Microfinance expert, Banker

Seminar Fee:
1. Early bird – P3,800 (on or before June 21, 2013)
2. Regular Rate – P4,200 (After June 21, 2013)
3. Non-Member/Delinquent – P5,040

Mode of Payment
• A Non-Refundable commitment fee of P2,100.00 per participant.
• Bank account (LBP – Intramuros Branch Savings Account Number 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Training Policies:
1. Reserve first with RBAP-RBRDFI your training slot, and wait for RBAP-RBRDFI confirmation of your reservation. Thereafter, you may deposit the Registration Fees, book ticket (airline) and secure accommodations.

RBAP-RBRDFI will not be responsible for any damage caused by unconfirmed reservation (s).

Likewise, once training is FULL, RBAP-RBRDFI has the right to refuse participation or reimbursement on any damage brought by unconfirmed reservations.

Deadline for submission of registration is not later that July 2, 2013.

2. Reservation via telephone conversation is accepted. However, Registration Form and fee must be settled 10 days prior the seminar date or June 21, 2013. Otherwise, reservation is considered cancelled.

3. Cancellation Policy: - This will apply to non-subsidized training fee.
a) 10 days prior the seminar date is entitled for a full refund. *Regular Rate only

b) 3 days prior to the seminar date is entitled for a half refund *Regular Rate only

c) Participants who have paid but failed to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee. (Regular Rate only)

d) For special cases (health, accident etc.), kindly coordinate with RBRDFI staff for refund procedures and requirements.

Seminar Methodologies

Lecture and Discussions

Expected Participants
Loan Managers, Supervisors, Loan/Field Staff and Account Managers

Objectives
At the end of the training, the participants are expected to:

1. Define and understand the meaning of delinquency and why it is important
2. Analyze and manage loan portfolio
3. Learn how to prevent delinquency and remedy hardened accounts
4. Learn the different faces of fraud (internal and external)
5. Develop strategies to detect, prevent and remedy fraud.

Course Outline

DAY 1
I. Course Overview and Expectation Setting
II. Portfolio Analysis & Management
III. Root Causes of Delinquency
IV. Delinquency Prevention and Remedial Management
V. Management of Hardened Accounts
VI. Small Claims Court

DAY 2
VII. Different Faces of Fraud (Internal & External)
VIII. Handling Fraud
IX. Fraud Detection
X. Management of Fraud
XI. Other Delinquency & Fraud Concerns/Open Forum

Download the Confirmation Sheet in PDF
_______________________________________________________________________________________
BSP Memorandum No. M-2013-023: BSP Compliance Rating System
Posted: 31 May 2013 01:33 AM PDT

Dear RBAP Members:

For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Memorandum No. M-2013-023: BSP Compliance Rating System.

The Memorandum is also posted in the BSP Website
View/Download BSP Memorandum No. 2013-023
_______________________________________________________________________________________
BSP Circular No. 797: Enforcement Actions on Banks in relation to Section 123 of RA No. 7653
Posted: 31 May 2013 01:30 AM PDT

Dear RBAP Members:

For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular No. 797: Enforcement Actions on Banks in relation to Section 123 of Republic Act No. 7653.

The said circular is also posted in the BSP website.
View/download BSP Circular No. 797
_______________________________________________________________________________________
New law allows foreigners to own 60% of rural banks
By Delon Porcalla (The Philippine Star)

MANILA, Philippines – President Aquino has signed a law allowing foreigners to own up to 60 percent of voting stocks in rural banks.

Under RA 10574, signed by the President last May 24, non-Filipino citizens may now own, acquire or purchase up to 60 percent of the voting stocks in a rural bank.

“It opens up another area where foreign capital can go into,” deputy presidential spokesperson Abigail Valte told a news briefing in Malacañang.

Under the law, foreigners can now be elected members of the board of directors of rural banks in the countryside. However, “their participation is limited to their proportionate share in the equity of the rural bank.”

Previously, rural banks should be “100 percent Filipino-owned,” but now that the law has been amended the arrangement can now be 60-40 – or 60 percent foreign and 40 percent local.

This is in stark contrast, however, to the 60-40 provision in the 1987 Constitution that was affirmed by the Supreme Court in its historic “national patrimony” ruling in 1997, giving priority to Filipinos in owning lands and running companies in the country.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

The new law likewise allows rural banks to foreclose the mortgage of properties or lands even if these are covered by the Comprehensive Agrarian Reform Program, although the threshold should not be “more than five hectares,” as provided for in the statute.

“It’s subject to the retention limits under Section 6 of RA 6657, or the Comprehensive Agrarian Reform Law,” Valte explained.

Meanwhile, the Rural Bankers Association of the Philippines (RBAP) lauded yesterday Malacañang’s move to pass RA 10574.

RBAP president Leandro Z. Garcia Jr. said this law would help create an environment conducive to economic growth in the countryside.

“The passage of the foreign equity bill into a law is a major win not only for rural banks, but to the countryside as well. Now that foreign investments are allowed, rural banks are now in a better financial position to reach out and serve both the unbanked and under-banked through improved banking services,” he said.

“We expect continuous development in the countryside especially now that rural banks are made even stronger and sustainable,” he added.

In effect, Garcia said the measure would provide an additional source of capital for rural banks, placing them on a level playing field with thrift and commercial banks.

He said with the law in place, RBAP could now open its doors for talks on potential foreign partnerships.

Under the new law, foreign investors — individuals or entities – may now own up to 60 percent of voting stocks in rural banks. It also states that the percentage of the foreign owned voting stock would be determined by the citizenship of the individual or corporate stockholders of the bank. – With Donnabelle Gatdula

Article lifted from The Philippine Star website: http://www.philstar.com
_______________________________________________________________________________________
BSP Comparative Median Rates on Savings Deposits Across Provinces – 4th Quarter 2012
Posted: 06 Jun 2013 12:30 AM PDT

Dear All,
Attached is the BSP Survey Results: Comparative Median Rates Per Province for 4th Quarter 2012.

This is also posted in the BSP website, www.bsp.gov.ph.

View / Download BSP Comparative Median Rates 4th qtr 2012
_______________________________________________________________________________________
Public sector deficit hits P163.3-B in 2012
ABS-CBNnews.com
Posted at 06/06/2013 5:12 PM | Updated as of 06/06/2013 5:12 PM

MANILA, Philippines - The consolidated public sector deficit reached P163.3 billion in 2012, according to data from the Department of Finance.

Finance Secretary Cesar V. Purisima said overall shortfall of the public sector in 2012 was 8% lower than the P151.5 billion a year ago. It was also P70.7 billion lower than the target of P234 billion.

The 2012 consolidated public sector deficit was equivalent to 1.5% of the Philippine economy, as measured by its gross domestic product (GDP), an improvement compared with 1.8% in 2011.

"The improvement was mainly due the improved performance of the national government, 14 Major Non-Financial. Government Corporations (MNFGCs), Social Security Institutions (SSIs) and Local Government Units (LGUs)," Purisima said.
The 14 GOCCs' deficit of P4.9 billion was an improvement from the deficit of P19.8 billion in 2011.

"The reduction came from Power Sector Assets and Liabilities Management Corporation (PSALM) due to accelerated privatization payments and higher prices in Wholesale Electricity Spot Market. This improvement in PSALM was partly negated by the accelerated capital expenditures by National Housing Authority corresponding to housing for uniformed personnel, and by MWSS due to accelerated disbursement for the Angat Water Utilization Aqueduct Improvement Project to ensure safety of raw water and security of water source," the DOF said.

The Social Security System, Government Service Insurance System and the Philippine Health Insurance Corp. also recorded an actual surplus of P72.7 billion on the account of higher revenues from members’ contributions and higher investment income derived from the holdings of government securities Government financial institutions, including Development Bank of the Philippines (DBP), Trade and Investment Development Corporation (TIDCORP) and Landbank, posted a combined surplus of P9.3 billion on higher earnings on its investments on bonds and securities.

Meanwhile, the Bangko Sentral ng Pilipinas (BSP) registered a deficit of P94.4 billion mainly due to losses incurred on its open market operations as a result of exchange rate and price fluctuations.

The aggregate net income from current operations of local governments (LGUs) reached P73.6 billion due to higher internal revenue allotment and income derived from local sources.
_______________________________________________________________________________________
RBAP 60th Annual National Convention Program
Posted: 02 Jun 2013 10:04 PM PDT

Dear RBAP Members:

For your guidance, attached is the Program for the RBAP 60th Annual National Convention on June 10-11, 2013 at Sofitel Philippine Plaza, Manila.

View/Download RBAP 60th Annual National Convention Program.
_______________________________________________________________________________________
DAR-PCIC’s ARB-Agricultural Insurance Program

TO: Federation and Confederation Presidents
RE: DAR-PCIC’s ARB-Agricultural Insurance Program

Dear Federation and Confederation Presidents:

In our earlier communication dated 10 May 2013, we mentioned that our organization was recently informed of programs that present a good opportunity to the rural banking industry. Among those mentioned is the Department of Agriculture and Philippine Crop Insurance Commission (DA-PCIC)’s Agrarian Reform Beneficiaries-Agricultural Insurance Program (ARB-AIP).

With an initial appropriation fund of P1 billion for CY 2013, the ARB-Agricultural Insurance Program provides a 100%premium subsidy for agricultural insurance coverage of farm investments of agrarian reform beneficiaries.

Although we have not received any response, we requested from the DAR-PCIC a list of their representatives whom our member rural banks could coordinate with regarding the program, specifically in identifying qualified agrarian reform beneficiaries.

Download here the above-mentioned lists for your perusal.

Thank you very much.


Very truly yours,

ATTY. EDWARD LEANDRO Z. GARCIA JR.
President
_______________________________________________________________________________________
Corporate Governance for RB Directors – BAGUIO
Posted: 03 Jun 2013 11:11 PM PDT

Dear Fellow Rural Bankers:

The Rural Bankers’ Research and Development Foundation, Inc. (RBRDFI) and the Federation of Baguio Benguet and Mt. Province Rural and Cooperative Banks are pleased to announce that they will conduct a seminar workshop, as part of the continuing strategy to strengthen the rural banking industry.

COURSE TITLE : Corporate Governance and Risk Management for RB Directors
VENUE : Golden Pine Hotel and Restaurant,
Cor. Carino & Yandoc St., Baguio City
SCHEDULE : July 12 – 13, 2013 (Friday and Saturday)
DURATION : 2 days
REGISTRATION FEE : Five Thousand Two Hundred Pesos (P5,200.00) per participant. (Registration Fee includes snacks, lunch, training kit and certificate of attendance)

For your reservations, kindly submit the following to us not later than July 1, 2013:

1. A non-refundable commitment fee of P2,600 per participant (50% of the registration fee). Payments can be remitted to the account of Richard Narvaez, Banco de Oro – SM Baguio Branch, account no. 1830009352. Proof of payment (i.e., deposit slip) should be sent immediately for verification through facsimile number (074) 422-1333.

2. Nomination form of the participant (s) duly endorsed by the bank’s authority.

3. Filled-up Participant’s Profile.

Travel expenses to and from the venue shall be borne by the participants. Kindly note that this is a live out seminar. Please be advised that we will be accepting up to forty (40) participants only on a first-come-first served basis.
Participants who have paid but fail to show up for the seminar will only be entitled to a rebate of 50% of the total registration fee.

For your reservation, please call any of the following:
Richard Narvaez 09175048373 Marie Luz Capuyan 09189258770
Mary Ann Nadunop 09285065183

Thank you very much.

MARIE LUZ T. CAPUYAN
Federation President

Download Confirmation Sheet
_______________________________________________________________________________________
(BSP) closed on Thursday Rural Bank of Naval, Inc. (Leyte)

THE Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) closed on Thursday its Rural Bank of Naval, Inc., according to the Philippine Deposit Insurance Corporation (PDIC).

The state deposit insurer also announced that it will conduct depositors-borrowers forums in June 5 and 6 to inform depositors of the requirements and procedures for filing deposit insurance claims.

The BSP stops bank operation if they have insufficient liquid assets to meet liabilities or cannot continue doing business without involving losses to depositors or creditors.

The Rural Bank of Naval has its main office located at P. Burgos St., Naval, Biliran. Its lone branch is in Carigara, Leyte with about 446 depositors.

As of March 31, the bank had 2,984 accounts with total deposit liabilities of P137.97 million in both Naval and Carigara branches.

“Upon takeover, all bank records shall be gathered, verified, and validated. The PDIC assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000,” the PDIC said in a statement posted in its website.

Of the total number of depositors, 98.7 percent or 2,944 deposit accounts have balances of P500,000 or less and fully covered by deposit insurance.

A PDIC official said, in a phone interview, that since Friday afternoon, they are examining bank records in the head office in Naval, Biliran, and branch office in Carigara, Leyte.

“After the examination process, we will immediately start the release of insurance claims. It will main depend on the availability of records,” said an insurer official, who requested anonymity for lack of authority to speak.

Depositors with valid deposit accounts with balances of P15,000 and below need not file deposit insurance claims. For those with small accounts, PDIC targets to start mailing payments to depositors within the next two weeks.

For depositors with balances of more than P15,000, they are required to file deposit insurance claims. The PDIC’s timetable to start claims settlement is set before the last week of June.

The state deposit insurer said that claim forms will be distributed during the forum. The schedule and venue of the Forum will be posted in the bank premises and in the PDIC website.

Citing the latest bank information sheet, PDIC said the bank was majority-owned by Jane Jean Diu (7.94 percent), Demetrio Jaguros (7.79 percent), Catalina Velasquez (7.33 percent), Cecilia Junia (6.57 percent), Cherry Enage (4.71 percent), Rizalito Curso (4.67 percent), Tomas Matiga (4.38 percent), Juan Pastor (4.05 percent), and Vicente Curso Sr. (3.94 percent).

Rizalito Curso served as the chairman, president and manager of the bank.

Last year, BSP stopped the operation of rural banks in Javier, Leyte; and in Taft, Eastern Samar.
(Sarwell Q. Meniano/Leyte Samar Daily Express)
 
Empowering rural banks
Posted: 30 May 2013 10:39 PM PDT

The country can expect a stronger rural banks at par with commercial banks in terms of product and services that it can provide to its clientele with the recent passage of Republic Act (R.A.) 10574, which allows foreign investments in rural banks.

R.A. 10574, or “An Act Allowing the Infusion of Foreign Equity in the Capital of Rural Banks, Amending R.A. 7353, Otherwise Known as the Rural Bank Act of 1992 as amended and For Other Purposes,” is a consolidation of House Bill 5360 as amended and Senate Bill 3282 as amended was passed into law on May 24, 2013, lifting the limit on bank ownership that has been a hindrance for the expansion of operations of rural banks for more than two decades.

The passage of the said bill is timely, as the country has been consistently receiving positive ratings and economic outlooks from international financial institutions such as the World Bank, Moody’s Investor Service and Fitch Ratings.

Recently, Standard and Poor’s also gave the Philippines a credit upgrade rating of BBB Minus from BB Plus, which is the minimum investment grade. Having such, the country has become more attractive to foreign investors as such ratings reflect a stable economy due to the existence of sound economic policies.

Likewise, the new law will foster a favorable economic environment in the countryside as foreign investors now have the option to infuse additional capital to rural banks. Rural banks, having financial stability through additional foreign capital, will be able to reach more to the unbanked and the under-served in the rural areas.

The law will also level the playing field for rural banks and bigger commercial banks, as rural banks can now take foreign investments, which was previously exclusive to thrift and commercial banks. With the stable economic status that the country is experiencing, foreign investments and partnerships are almost within reach of rural banks.

Among the key features of the new law is the increase of voting stocks that foreign investors can own in a rural bank. Under the law, non-Filipino investors are now allowed to own, acquire or purchase up to 60 percent of voting stocks in rural banks, provided that the percentage of foreign-owned stocks will be determined by the citizenship of the individual or corporate stockholders of the bank.

It also allows foreign investors to sit on the banks’ Board of Directors, given that their participation in the board shall be proportionate to their investment in the bank.

The rural banking industry is in high hopes that the Aquino administration will remain supportive to developments in the countryside through such laws. The industry gives credit to the legislators from both the upper and lower chambers of Congress, as well as the Bangko Sentral ng Pilipinas and other stakeholders who carried off the task of ensuring the measure will be passed into law.

Published in The Manila Times, 30 May 2013
_______________________________________________________________________________________
New law allows foreigners to own 60% of rural banks
By Delon Porcalla (The Philippine Star)

MANILA, Philippines – President Aquino has signed a law allowing foreigners to own up to 60 percent of voting stocks in rural banks.

Under RA 10574, signed by the President last May 24, non-Filipino citizens may now own, acquire or purchase up to 60 percent of the voting stocks in a rural bank.

“It opens up another area where foreign capital can go into,” deputy presidential spokesperson Abigail Valte told a news briefing in Malacañang.

Under the law, foreigners can now be elected members of the board of directors of rural banks in the countryside. However, “their participation is limited to their proportionate share in the equity of the rural bank.”

Previously, rural banks should be “100 percent Filipino-owned,” but now that the law has been amended the arrangement can now be 60-40 – or 60 percent foreign and 40 percent local.

This is in stark contrast, however, to the 60-40 provision in the 1987 Constitution that was affirmed by the Supreme Court in its historic “national patrimony” ruling in 1997, giving priority to Filipinos in owning lands and running companies in the country.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1

The new law likewise allows rural banks to foreclose the mortgage of properties or lands even if these are covered by the Comprehensive Agrarian Reform Program, although the threshold should not be “more than five hectares,” as provided for in the statute.

“It’s subject to the retention limits under Section 6 of RA 6657, or the Comprehensive Agrarian Reform Law,” Valte explained.

Meanwhile, the Rural Bankers Association of the Philippines (RBAP) lauded yesterday Malacañang’s move to pass RA 10574.

RBAP president Leandro Z. Garcia Jr. said this law would help create an environment conducive to economic growth in the countryside.

“The passage of the foreign equity bill into a law is a major win not only for rural banks, but to the countryside as well. Now that foreign investments are allowed, rural banks are now in a better financial position to reach out and serve both the unbanked and under-banked through improved banking services,” he said.

“We expect continuous development in the countryside especially now that rural banks are made even stronger and sustainable,” he added.

In effect, Garcia said the measure would provide an additional source of capital for rural banks, placing them on a level playing field with thrift and commercial banks.

He said with the law in place, RBAP could now open its doors for talks on potential foreign partnerships.

Under the new law, foreign investors — individuals or entities – may now own up to 60 percent of voting stocks in rural banks. It also states that the percentage of the foreign owned voting stock would be determined by the citizenship of the individual or corporate stockholders of the bank. – With Donnabelle Gatdula

Article lifted from The Philippine Star website: http://www.philstar.com
_______________________________________________________________________________________
BSP Circular No. 797: Enforcement Actions on Banks in relation to Section 123 of RA No. 7653
Posted: 31 May 2013 12:19 AM PDT

Dear RBAP Members:
For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular No. 797: Enforcement Actions on Banks in relation to Section 123 of Republic Act No. 7653.

The said circular is also posted in the BSP website.
View/download BSP Circular No. 797
_______________________________________________________________________________________
BSP Memorandum No. M-2013-023: BSP Compliance Rating System
Posted: 31 May 2013 12:26 AM PDT

Dear RBAP Members:
For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Memorandum No. M-2013-023: BSP Compliance Rating System.

The Memorandum is also posted in the BSP Website
View/Download BSP Memorandum No. 2013-023
_______________________________________________________________________________________
BSP says bank growth at par with robust 1st-qtr economy
Published on Saturday, 01 June 2013 21:34
Written by Bianca Cuaresma / Reporter

THE Philippine banking system achieved an overall growth at par with the Philippines’s robust economy in the first quarter of this year.

Bangko Sentral Governor Amando M. Tetangco Jr. said the strong performance of the Philippine banks in the first quarter of the year is a “good sign” for the growing Philippine economy and overall banking system in the country.

“That means that they were able to take advantage of the growth in the economy to expand their operations and, in turn, generate more income, so that is good,” Tetangco said.

He also said the growth of the Philippine banking system could be attributed to three factors.

“If you look at the banking system, it has improved in profitability, it has improved in terms of capitalization, and in terms of asset quality,” Tetangco said.

The profit-growth acceleration of Philippine banks is reflected in several banks posting a higher increase in net profit as stated in their quarter-end report for this year.

Philippine Savings Bank (PSBank) showed a 273-percent net-income increase in the first quarter of this year, from P545 million in the first quarter of last year to P2.038 billion by end-March this year.

Banco de Oro (BDO) and Metropolitan Bank and Trust Co. (Metrobank) also posted high increases in profit in the first quarter of this year. BDO reported a 257-percent surge in net profit, from P2.824 billion by end-March last year to P10.05 billion in the same period this year.

Metrobank’s profit grew from P4.3 billion in January to March last year to P11.4 billion in the same period this year, indicating a 163-percent growth.

Development Bank of the Philippines (DBP) almost tripled its net income from January to March this year compared to the same period last year. DBP’s net income in the first quarter of last year at P800 million surged to P1.52 billion in the same period this year.

Land Bank of the Philippines (LBP), Chinabank Corp. and Eastwest Bank all showed about 60-percent growth for the first quarter of this year. Unionbank of the Philippines’s net profit increased by 41 percent from last year’s P2.843 billion to this year’s P4.002 billion.

Bank of the Philippine Islands’ (BPI) net income also rose to P8.471 billion from January to March this year, a 43-percent increase from P5.88 billion in the same period last year.

Rizal Commercial Banking Corp. (RCBC) posted a 16-percent increase while Security Bank showed an 11-percent net-profit growth in the first quarter of this year.

Most of the banks attributed their growth to revenues and trading gains due to favorable market conditions and rise in their consumer-loan portfolios.

Foreign credit-rating agencies also commended the stable capitalization and improving asset quality of several commercial banks in the country.

Just this year, Moody’s credit-rating agency affirmed the ratings of BDO, BPI and Metrobank.

The affirmation of the “Ba1” long-term deposit ratings of the three banks with a stable outlook reflects strong liquidity and capitalization of the banks,” Moody’s report said.

Moody’s said it expects the high capitalization in these banks to remain in the next 12 months.

Moody’s also said BPI and Metrobank are consistently improving in terms of their asset quality, citing the “decline in absolute non-performing loans [NPL] and gross NPL.”

The credit-rating agency also said that although BDO improved in asset quality year on year, it still has to keep up with the first two banks.

Another rating agency, Fitch, followed suit, affirming the credit ratings of BPI, BDO, DBP and LBP, citing “high core capitalization and satisfactory liquidity” among the key drivers of the banks’ stability.

“Upside for large Philippine banks may stem from sustainable improvements in the broader operating and regulatory environment and structural features,” Fitch said in a report.

Rural banks also eye on improvements on capitalization and technology given the newly signed foreign equity act, which revised the Rural Bank Act of 1992.

The law allows foreigners to own 60 percent of the voting stocks in a rural bank. Under the Foreign Equity Law, also known as Republic Act 10574, foreigners may now also become members of the board of directors of a rural bank.

“Now that foreign investments are allowed, rural banks are in a better financial position to reach out and serve both the unbanked and under-banked through improved banking services,” Rural Bankers Association of the Philippines President Edward Leandro Garcia Jr. said in a statement.

Tetangco also expressed support for the new policy law signed by President Aquino on May 24.
“We support that. And it is a way of attracting foreign equity that will help boost not only the capitalization of rural banks but also the technology, the technology of rural banks,” Tetangco said.

There are 9,410 bank offices and branches in the Philippines as of December 2012, according to the Philippine banking system statistics of the BSP.
_______________________________________________________________________________________
BSP closes Leyte-based rural bank
ABS-CBNnews.com
Posted at 05/31/2013 5:32 PM | Updated as of 05/31/2013 5:32 PM

MANILA, Philippines - The Monetary Board placed another rural bank under the receivership of the Philippine Deposit Insurance Corp. (PDIC).

In a statement, the MB said it placed the Rural Bank of Naval, Inc., located in Leyte, under the receivership of the PDIC on May 30. The PDIC took over the bank on Friday (May 31).

The Rural Bank of Naval has only two branches - the head office located at P. Burgos St., Naval, Biliran, Leyte and its a branch in Carigara, Leyte.

Records show that as of March 31, 2013, Rural Bank of Naval had 2,984 accounts with total deposit liabilities of P137.97 million. Nearly 99% of all the accounts have balances of P500,000 or less, which means these are fully covered by deposit insurance. Total insured deposits amounted to P79.48 million or 57.6% of the total deposits.

Upon takeover, all bank records shall be gathered, verified and validated. PDIC assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.00.

Depositors-Borrowers Forums will be conducted on June 5 and 6, 2013 to inform depositors of the requirements and procedures for filing deposit insurance claims. Claim forms will be distributed during the Forum.

The schedule and venue of the Forum will be posted in the bank premises and in the PDIC website,www.pdic.gov.ph. The claim forms and the requirements and procedures for filing are likewise available for downloading from the PDIC website.
For questions, depositors may call PDIC Toll Free Hotline at 1-800-1-888-PDIC(7342), the PDIC Public Assistance Hotlines at (02) 841-4630 to (02) 841-4631, or send their e-mail to pad@pdic.gov.ph.
_______________________________________________________________________________________
RBAP LAUDS PNOY FOR SIGNING FOREIGN EQUITY BILL INTO LAW

The Rural Bankers Association of the Philippines (RBAP) expressed gratitude to President Benigno Simeon Aquino III for signing into law the Foreign Equity Bill or Republic Act (RA) 10574, saying this will help create an environment conducive to economic growth in the countryside.

“The passage of the Foreign Equity Bill into a law is a major win not only for rural banks, but to the countryside as well. Now that foreign investments are allowed, rural banks are now in a better financial position to reach out and serve both the unbanked and under-banked through improved banking services. We expect continuous development in the countryside especially now that rural banks are made even stronger and sustainable," said Atty. Edward Leandro Z. Garcia Jr., RBAP President.

In effect, Atty. Garcia said the measure would provide an additional source of capital for rural banks, placing them on a level playing field with thrift and commercial banks. With the law in place, he said RBAP could now open its doors for talks on potential foreign investor partnership.

Apart from President Aquino, RBAP would also like to extend its appreciation to the legislators who showed support to the industry by diligently working on the swift passage of the measure.

"We commend the legislators in both chambers of Congress, particularly to the sponsors Senator Sergio R. Osmena III and Representatives Sergio A.F. Apostol, Rufus B. Rodriguez and the late Pedro Romualdo, for their steadfast commitment to ensure passage of this important piece of legislation that limited rural bank ownership to Filipinos for more than two decades. We also recognize the support of the Bangko Sentral ng Pilipinas and other stakeholders who shared with us the vision of a viable and sustainable rural banking industry that is responsive to the needs of many enterprising poor in the country, said Atty. Garcia.

Malacanang confirmed on Monday that President Aquino signed the measure into law, which amended RA 7353 or the Rural Banks Act of 1992.

Under the new law, foreign investors – individuals or entities – may now own up to 60% of voting stocks in rural banks. It also states that that the percentage of the foreign owned voting stock would be determined by the citizenship of the individual or corporate stockholders of the bank.

RA 10574 or “An Act Allowing the Infusion of Foreign Equity in the Capital of Rural Banks, Amending RA 7353, Otherwise Known as the Rural Bank Act of 1992 as amended and For Other Purposes” is a consolidation of House Bill 5360 as amended and Senate Bill 3282 as amended.

House Bill 5360 as amended was passed by the House of Representatives last January 3, 2013, while Senate Bill 3282 as amended was passed by the Senate last January 28, 2013. The bicameral conference committee report reconciling the two bills was ratified by both Houses of Congress last April 24, 2013.
_______________________________________________________________________________________
Aquino signs amendments to Rural Bank Act into law
By Genalyn D. Kabiling
Published: May 29, 2013

A measure amending the Rural Bank Act to allow foreign capital infusion in rural banks has been signed into law by President Benigno S. Aquino III.

Republic Act No. 10574 aims to promote a healthier and competitive rural banking system as well as boost economic development in the countryside.

The law amends Section 4 of Republic Act No. 7353 or the Rural Bank Act of 1992 that now allows foreign individuals and entities to acquire equity of up to 60 percent in rural banks.

Prior to the amendment, RA 7353 only allowed foreign banks, not individuals or entities, to acquire equity in rural banks. Proponents of RA 10574 believed that such restriction limited the capabilities of the rural banks to improve and expand services to farmers, fishermen, micro-entrepreneurs, and other rural folk.

"Non-Filipino citizens may own, acquire or purchase up to sixty percent (60%) of the voting stocks in a rural bank. The percentage of foreign-owned voting stocks shall be determined by the citizenship of the individual or corporate stockholders of the rural bank," the new law read.

RA 10574, signed last May 24, also amended Section 5 of RA 7353 by allowing foreign individuals to become members of the Board of Directors of a rural bank but their participation is limited to their proportionate share in the equity of the rural bank.

Also amended was Section 6 of RA 7353 that now states loans extended by rural banks will be primarily for the purpose of meeting the credit needs of farmers, fishermen, cooperatives and merchants.

To promote and expand rural economic development, the law also allowed the Land Bank of the Philippines, Development Bank of the Philippines or any government bank to subscribe within thirty (30) days to the capital stock of any rural bank from time to time in an amount equal to the total equity investment of the private shareholders.

The law also directed the Bangko Sentral ng Pilipinas (BSP) to craft the rules and regulations to implement RA 10574 in consultation with concerned stakeholders.

BSP was likewise assigned to disseminate such information "to allow entry of foreign equity into our rural bank system to revitalize the rural banking industry and improve access of banking services to the rural areas in the country."

The implementing rules and regulations must be published within 90 days from publication of the new law in two newspapers.
Dear RBAP members:

Please see attached letter re: Escalation Procedure on General Examination
Concerns.

Kindly acknowledge receipt of email. Thank you.
_______________________________________________________________________________________
Dear Batangas Rural Bankers,

The photos of the general membership meeting held today at the Luntian Resort, Lipa City may be viewed at <https://www.facebook.com/BatangasRuralBankers>.

A total of 24 member banks and 52 attendees was one of the highest attendance records for the federation.

Like us on Facebook.

Ricky Estrada
_______________________________________________________________________________________
Going green
Posted: 23 May 2013 08:17 PM PDT

Nowadays, projects that involve conservation and recycling are no longer limited to just corporate social responsibility undertakings. Going green has gained mainstream consciousness.

Gone are those days where the color green just stands for dollar or any currency for that matter. Environmental protection has already impacted enterprise mentality greatly, so much so that business decisions coincide with programs that encourage and promote the wise use of natural resources. The message is clear: protect the environment and you protect the market.

It is noteworthy to point out that amid this growth in mindset, the rural banking industry has already been very active in green-related endeavors. In fact, it may come as a surprise to some that green banking has long been practiced by a number of rural banks.

Apart from harnessing technology to lessen its carbon footprints, rural banks are at the forefront of financing small and medium enterprises (SMEs) that are responsive to environmental conservation efforts.

These are the little things which, when added up, constitute a significant portion of the overall green initiative.
On a much larger scale, a sustainable green banking policy needs to be institutionalized to achieve a balance between business success and environmental protection in the country.

According to the International Finance Corp. (IFC), the private sector arm of the World Bank, financial institutions like rural banks are key influencers of the private sector in green banking. Rural banks, as source of capital for SMEs, can use environmental consideration in their criteria for approval of loans, which can influence new businesses to adhere to environmentally sound practices.

Our neighboring countries in Asia such as Korea, Indonesia and China have started programs to initiate green banking. Banking regulations and supervision have been enhanced to attune it with environmental protection.
The IFC has observed that when banks adopt environmental and social management systems, financial institutions benefit from lower cost of capital, improved quality of loan portfolio, better terms of insurance, improved brand value, creation of new business opportunities and attraction of funds, among others.

Green banking practices also attracts funding institutions in infusing capital with banks that follow and implement green banking initiatives.

Efforts of rural banks toward green banking would remain inadequate without the support from the government and its regulating bodies. This initiative will be successful only if banks are encouraged for its implementation. Incentives that would boost their operation and financial standing should be included in the policy, to convince financial institutions to shift to green banking.

It is notable that tangible benefits for both the economy and the environment can result from going green. Our hope is that our government will look into the possibility of including green banking among its economic policies, to ensure economic and environmental sustainability in our shores.

Published in The Manila Times, 23 May 2013
_______________________________________________________________________________________
BSP shuts down Bulacan-based rural bank
ABS-CBNnews.com
Posted at 05/24/2013 3:21 PM | Updated as of 05/24/2013 5:43 PM

MANILA, Philippines - A Bulacan-based rural bank with 18 branches has been placed under the receivership of the Philippine Deposit Insurance Corporation (PDIC).

In an order dated May 23, the Monetary Board placed the Cooperative Rural Bank of Bulacan under PDIC receivership. PDIC took over the bank on Friday (May 24).

The Cooperative Rural Bank of Bulacan's head office is located in Plaridel, Bulacan and has 18 branches in Bulacan, Pangasinan, Rizal, Laguna and Makati.

Thirteen branches are found in Bulacan (Angat, Balagtas, Baliuag, Bocaue, Bulacan, Malolos, Malolos-Cabanas, Meycauayan, Paombong, Pulilan, San Jose del Monte City, San Miguel and Sta. Maria).

It has one branch each in Urdaneta (Pangasinan), Cainta (Rizal), Sta. Rosa (Laguna) and Makati (a microfinance-oriented branch).

However, the PDIC noted that nearly all of the deposit accounts are below P500,000, which means these are fully covered by deposit insurance. Around 99.5% or 44,166 deposit accounts have balances of P500,000 or less.

Records show as of March 31, 2013, the bank had 44,388 accounts with total deposit liabilities of P2.17 billion. Total insured deposits amounted to P1.79 billion or 82.4% of the total deposits.

PDIC said that upon takeover, all bank records shall be gathered, verified and validated.

The PDIC assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of P500,000.00.

Depositors-Borrowers Forums will be held from May 30, 2013 to June 5, 2013 to inform depositors of the requirements and procedures for filing deposit insurance claims. Claim forms will be distributed during the forum.

The schedule and venue of the Forum will be posted in the bank premises and in the PDIC website, www.pdic.gov.ph . The claim forms and the requirements and procedures for filing are also available for downloading from the PDIC website.
_______________________________________________________________________________________
BSP adopts rules compliance rating system for PH banks
By Michelle V. Remo
Philippine Daily Inquirer
5:42 am | Friday, May 24th, 2013

MANILA, Philippines—The Bangko Sentral ng Pilipinas (BSP) has established a rating system that will evaluate banks’ compliance with various regulations that were designed to ensure the sustainability of their favorable financial standing.
The BSP said the “Compliance Rating System,” embodied in Circular 747, would be implemented starting September this year.

Banks will be rated using a scale of 1 to 4, with 1 indicating the weakest and 4 the strongest level of compliance with various regulations implemented by the BSP.

Those that will get weaker scores are expected to receive tighter supervision by the BSP.

The ratings to be given to banks will depend on their performance in three areas:
– The effectiveness and efficiency of the board of directors (BOD) and senior management (SM) in fulfilling their duties and responsibilities.
– The soundness and effectiveness of banks in implementing their own compliance programs
– The adequacy and soundness of internal controls, which help the BOD and SM in identifying, measuring and controlling business risks

Business risks, according to the BSP, should be identified, measured and controlled, as these could erode the franchise value of the institutions.

“BSP Circular 747 requires institutions to have a robust, dynamically responsive and appropriate compliance system as an integral component of an institution’s internal controls,” the central bank said.

It added that the system was meant to prevent operational weakness of banks brought about by violations of rules and regulations.

The BSP said the higher the level of compliance of banks with rules and regulations, the more likely the banking sector would remain strong and stable.

The regulator said that currently, the Philippine banking system was sound, given healthy profits of industry members, their growing liquidity and capitalization, and low exposure to defaults.

The BSP earlier reported that the combined profits of rural, thrift, universal and commercial banks in the country amounted to P122.12 billion last year, up by 17 percent from P104.73 billion in 2011.
_______________________________________________________________________________________
High transaction costs in rural areas limit remittance benefits

HIGH TRANSACTION cost and limited financial services in rural areas reduce the benefits of remittances for residents living in rural areas, a report from the International Fund for Agricultural Development (IFAD) and the World Bank (WB) showed.
As a result, less money is received by families of overseas workers, most of whom live in rural areas that have limited access to financial services.

"With two-thirds of remittance payment outlets in Asia located in urban areas, rural recipients must travel long distances to collect their remittances. With little access to basic banking services, they have few investment options beyond daily subsistence needs such as food, clothing and shelter," read the report.

For his part, Kevin Cleaver, IFAD associate vice-president, said in a statement released by the United Nations Information Center that "if rural families are given more financial options to use the funds they receive, up to $30 billion could potentially be saved, invested and put back into communities. If this happens, migration for future generations could become a matter of choice rather than a necessity."

In the case of the Philippines, the report cited established remittance frameworks amid an innovating market system.

The report cited the case of Atikha, a nongovernmental organization that developed a program for remittance-receiving families.

"The program was able to offer a guaranteed 6% rate of return, plus a share of any profits," read the report.

Further, an estimated $1.4 million in monthly savings has been generated after the documentary stamp tax was abolished in 2009.

Sought for comment, Deputy Governor Diwa C. Guinigundo of the Bangko Sentral ng Pilipinas (BSP) yesterday said via text that the central bank has implemented several measures to address high remittance cost and limited financial services for families living in rural areas.

"We made the BSP-operated PhilPaSS (Philippine Payments and Settlements System), the country’s real-time gross settlement system, available for last mile remittances and, in the process, helped reduce remittance cost," he said.

The PhilPaSS REMIT System, launched in October 2010, provides a safer and cheaper way to send money to beneficiaries of overseas Filipinos by doing away with bank couriers allowing the charging of lower fees, and establishment of a feedback mechanism that allows workers to trace the status of their remittances.

"We also required the banks to disclose their remittance charges on prominent places in their bank premises to promote greater competition and help further reduce remittance cost," he added.

Mr. Guinigundo also said "economic and financial education programs" are being conducted for overseas workers and their families here and abroad to help manage finances and increase their savings and investment.

"Moreover, the BSP initiated the interconnection of the ATM (automated teller machine) providers to allow the recipient families greater access to their funds.

"The BSP also authorized qualified rural banks to offer their clients, including overseas workers and their families, foreign currency deposit account to give them the option to keep their earnings in foreign exchange," he added.

The Philippines is the third largest remittance recipient in the world at $24.3 billion, which accounts for over half of all remittances to Southeast Asia. -- Daryll Edisonn D.
_______________________________________________________________________________________
Promises unbroken, promises fulfilled
Posted: 16 May 2013 01:46 PM PDT

The most agonizing part of post-elections scenario is the “waiting period.” Not just waiting for the election results (which could take a month and, in some cases, even years), but also waiting for the campaign promises made by the candidates, especially by Senate and Lower House hopefuls, to come to fruition.

In today’s fast-paced world where the frequently asked question “what have you done for me lately?” has to be answered to remain relevant, the elections’ aftermath commonly asked question is “what will you do for me?” For business enterprises like rural banks, answering this question is paramount.

The rural banking industry has a duty to serve this market in accordance with its mandate, but lawmakers must lay down the enabling environment for rural communities to thrive.

To be fair, Congress—during the last few months prior to the elections—took the rural banking industry a step further by passing a measure amending the Rural Bank Act of 1992, which will allow foreign ownership of rural banks from a minimum of 40 percent to a maximum of 60 percent.

The measure seeks to stimulate more activity among rural banks by creating an environment that is beneficial to foreign investors, local banking patrons, and the national economy. This is expected to level the playing field with thrift and commercial banks, which are currently allowed to take foreign partnerships.

In addition, the hope is that legislators will look favorably to the proposed amendment to Republic Act 7653, or the New Central Bank Act, when Congress reconvenes for its 16th session.

Amendment to the Bangko Sentral ng Pilipinas (BSP) charter did not gain much ground during the last Congress. House Bill 6205 was approved by the Banks and Financial Intermediaries Committee, but was never elevated to the plenary level for debates. On the other hand, in the same counterpart committee, Senate Bill 2742 has been gathering dust and barely completed one hearing.

The BSP has been pushing for this amendment so it can prompt the national government to automatically recapitalize every time its capital reaches dangerously low levels. The BSP’s losses have been mounting because of extensive open market operations to prevent the peso from appreciating further.

Apart from improving the country’s banking sector, the rural banking industry is hoping that lawmakers will also prioritize and faithfully devote their time, effort and energy to the development of rural areas.

As often mentioned in this space, an economically empowered rural community is a key ingredient in improving the overall economic growth of the country. When the poorest of the poor becomes self-reliant and an important contributor to the economy, it is a much more significant and truer sign of economic growth than whatever gain the bourse will have—even if the latter is in record-highs.

In turn, an economically active rural community will likewise elevate the rural banks that serve them in terms of increased deposits, loans and availment of other products.

Published in The Manila Times, 16 May 2013
_______________________________________________________________________________________
BSP Circular No. 796: Amendments to Appendix 45 (Notes on Microfinance) of Section X361 of the Manual of Regulations for Banks
Posted: 14 May 2013 12:39 AM PDT

For your guidance, attached is Bangko Sentral ng Pilipinas (BSP) Circular No. 796 – Amendments to Appendix 45 (Notes on Microfinance) of Section X361 of the Manual of Regulations for Banks (MORB).

Circular No. 796 is posted in the BSP website.
View BSP Circular No. 796.
_______________________________________________________________________________________
BSP Memorandum No. M-2013-017: Enhancements to the Risk-Based CAR Report in Relation to Recently Issued Regulations
Posted: 14 May 2013 12:15 AM PDT

For your guidance, attached is the Bangko Sentral ng Pilipinas (BSP) Memorandum No. M-2013: Enhancements to the Risk-Based Capital Adequacy Ratio (CAR) Report in Relation to Recently Issued Regulations.

The memorandum is also posted in the BSP website.
View BSP Memorandum No. M-2013-017
_______________________________________________________________________________________
Bank deposits rise to P4.4T
By Prinz P. Magtulis (The Philippine Star) | Updated May 12, 2013 - 12:00am

MANILA, Philippines - Bank deposits increased more than a tenth in the first two months of the year, highlighting the strength of local lenders to provide credit to a growing economy, the Bangko Sentral ng Pilipinas (BSP) said.

Total deposits hit P4.403 trillion as of end February, 10.7 percent up from the previous year’s P4 trillion, figures from the BSP’s First Quarter Inflation Report released last Friday showed.

“The continued growth in deposits reflected depositors’ sustained confidence in the banking system,” the report stated.
A large deposit base allows banks to extend more credit through lending which, in turn, provides credit to finance projects and boost economic activity. The BSP has repeatedly pointed to this huge liquidity in stressing local banks’ strength.

Demand deposits — used to fund checking accounts — posted the fastest year-on-year increase of 11.6 percent by crossing the trillion-peso mark to P1.079 trillion. P964.16 billion a year ago.

Savings deposits jumped 10.7 percent in the comparative period. This money, usually accessible through automated teller machines, rose to P2.202 trillion from P1.966 trillion a year earlier.

PDIC data is also released every year, while that of the BSP comes out every quarter through the inflation report.The central bank deposits data differ from that of the Philippine Deposit Insurance Corp., which is the more expanded version to include, among others, money in foreign currency deposit units.

While banks have kept huge deposits more than enough to support lending, these have not stopped them to tap the central bank for additional funding to some sectors.

As of April, peso loans granted by the BSP to banks under its rediscounting facility expanded 5.4 percent to P12.678 billion from P12.028 billion a year ago, the central bank said in a statement.

Credit was extended to universal, commercial, thrift and rural banks. Of the total availments, 87.1 percent went to fund commercial operations, 4.6 percent for capital expenditures, 1.9 percent for agricultural and industrial activities and 0.4 percent as permanent working capital.

The rest, accounting for six percent of total, went to “other services.” The BSP did not elaborate.

On the other hand, dollar loans usually granted to exporters dipped 0.8 percent year-on-year to $52.4 million during the first four months, official data showed. This benefitted 25 exporters.
_______________________________________________________________________________________
Channeling OFW investments in rural areas
Posted: 09 May 2013 08:04 PM PDT

The lack of access to microfinancing is still considered one of the main problems facing rural communities today, as most of them are forced to resort to “5-6” lenders or loan sharks to finance their small businesses.

Thus it is viewed that a rural bank-OFW partnership towards delivering microfinance funding will not only provide rural communities with a safer and more viable funding option but also boost economic growth in the countryside.

Based on the Central Visayas Regional Development Plan for 2011 to 2016 of the National Economic and Development Authority (NEDA), rural banks can partner with OFW communities to promote microfinance as an area for savings and investments. A ready and sustainable market awaits for these investments, as the NEDA cited the lack of access to microfinance credit and utilization for farmers, fisher folk and small-medium enterprise in the region.

Part of the initiatives to improve utilization of credit facilities by farmers, fisher folks and SMEs shall be the conduct of extensive information campaigns on credit and financing programs being implemented by the government and private financing institutions.

To improve their creditworthiness, NEDA said the government should also provide financing institutions with marketing assistance so they will have a better capacity to repay their loans.

Other local projects designed to develop the countryside include the “Bayaning Bayanihan”—a partnership between rural banks and the Economic Resource Center for Overseas Filipinos or Ercof. The program creates special bank products like savings, investments and loans to farmers and fisher folks and micro-entrepreneurs.

Another undertaking between the rural banking industry and Ercof is the “Balik-Barrio Bayani Project,” which is conducted in partnership with Smart Telecommunications Inc. and SEEDFinance Corp. Under this project, MFIs like rural banks shall design deposit, capital build-up and loan products for OFWs and their families that will include the provision of business development services for OFW-owned businesses.

Meanwhile, multilateral funding institutions have also joined the fray in helping improve access to financial services in the Philippines and the rest of Asia. Manila-based Asian Development Bank, for one, in partnership with a multinational bank, will come up with a program than involves lending $150 million through MFIs in the Asian region from 2013 to 2018.

Through these partnerships, rural banks and OFW communities will provide a constant source of financing urgently needed to bankroll development in rural areas, an undertaking that would make economic growth in the countryside inevitable.

Published in The Manila Times, 09 May 2013
_______________________________________________________________________________________
April inflation is slowest in 13 months
NSO cites decline in fuel prices, higher farm output
By Michelle V. Remo
Philippine Daily Inquirer
10:27 pm | Tuesday, May 7th, 2013

Inflation in April settled at its slowest pace in 13 months as the decline in fuel prices tempered the increase in the cost of other commodities and favorable farm output boosted the supply of some food products.

Consumer prices increased by an average 2.6 percent in April—the slowest since the 3 percent recorded in the same month last year—to bring down the average for the first four months of this year to 3 percent, the National Statistics Office reported Tuesday.

The latest four-month average stood at the bottom of the central bank’s official target range for the year of 3 to 5 percent.
According to Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas, price movements so far in the year gave comfort that, barring any unexpected developments, inflation would be modest at least over the short term.

“This turnout for the month was within the BSP’s forecast and confirms our outlook for manageable inflation over the policy horizon,” Tetangco said in a statement.

Data from the NSO showed that aided by the decline in fuel prices, the transport index contracted by 0.7 percent year-on-year in April to reverse the 0.5-percent annual increase in March. Similarly, prices of some food groups eased, among them farm oil and fats, which contracted by 7.9 percent in April from a 7.7-percent drop in March; and fish, which fell 0.5 percent in April from an annual increase of 1.2 percent the previous month.

Food products that registered year-on-year increases in prices were corn (from 1.6 percent in March to 0.1 percent in April); milk, cheese and egg (from 3.5 to 2.5 percent); fruits (from 4.5 to 4.2 percent), and sugar, jam, honey and chocolates (from 7.1 to 6.8 percent).

However, prices of rice and vegetables registered faster annual rates of increases. Rice prices rose 2.2 percent in April from 1.5 percent in March, while vegetable prices inched up by 1.7 percent in April from 1.4 percent the previous month.

Tetangco said the BSP would monitor domestic and external developments to see if there would be a need to adjust existing monetary policy to ensure inflation would stay within target.

He added that the central bank would assess the impact of the series of cuts in the yield on special deposit accounts (SDAs) as well as the latest developments in advanced economies to determine their impact on domestic inflation in the months ahead.

He said the BSP would work on helping keep inflation manageable and economic growth robust.

Since the start of the year, the BSP has cut the SDA rate three times for a total of 150 basis points to a historic low of 2 percent. The move was intended to encourage banks to withdraw some of their funds from the BSP’s SDA facility and use these for lending, which in turn, could cause economic activity to increase.
_______________________________________________________________________________________
Bankers ask SC to junk Comelec's money ban
By Louis Bacani (philstar.com) | Updated May 9, 2013 - 5:50pm

MANILA, Philippines - A bankers' group asked the Supreme Court (SC) on Thursday to halt the Commission on Elections (Comelec) from implementing the "cash ban."

The Bankers Association of the Philippines (BAP) petitioned the high court to issue a temporary restraining order or a status quo ante order and nullify Comelec Resolution No. 9688 for being unconstitutional.

The resolution prohibits the "withdrawal of cash, encashment of checks and conversion of any monetary instrument into cash from May 8 to 13, exceeding P100,000 or its equivalent in any foreign currency, per day in banks, finance companies, quasi-banks, pawnshops, remittance companies and institutions performing similar functions."

The BAP argued many businesses require large withdrawals of money on a daily basis and implementing the money ban would be "imprudent."

The Comelec on Tuesday issued the resolution implementing the money ban from May 8 to election day on May 13.

The poll body said the aim of the money ban is to deter vote buying.
_______________________________________________________________________________________
Good day members of RBAP!

For your guidance, below is the official statement of the Bangko Sentral
ng Pilipinas re Comelec Resolution 9866 - Money Ban.

The Statement is posted on the BSP website:
http://www.bsp.gov.ph/publications/media.asp?id=3145

Kindly acknowledge receipt of this email.

Thank you.

Media Releases
BSP's Statement on Comelec Resolution 9688
05.08.2013
The Bangko Sentral ng Pilipinas supports the COMELEC’s goal to ensure
clean and honest elections in the Philippines. However, the BSP
believes that limiting cash withdrawals to one hundred thousand pesos
(P100,000.00) and for the monetary authority to enforce this may not
be the best way to achieve the goal of ensuring clean and honest
elections.

The BSP's position is based on the following grounds:

1. Limiting cash withdrawal and check clearing beyond one
hundred thousand pesos may disrupt normal business and commercial
transactions in the Philippines.

2. The BSP is also constrained from enforcing the COMELEC
resolution because this would necessarily entail looking into bank
deposit accounts. This is essentially unsound and in violation of
Republic Act (R.A.) No. 1405, as amended, (Secrecy on Peso deposits) and
R.A. No. 6426 (Secrecy on foreign currency deposits).
_______________________________________________________________________________________
RBAP Statement on Comelec Resolution No. 9688
May 8, 2013 By rbapadmin Leave a Comment
08 May 2013

The Rural Bankers Association of the Philippines (RBAP) is waiting for ‘official final orders’ from the Bangko Sentral ng Pilipinas (BSP) before implementing the recently issued resolution of the Commission on Elections (Comelec), limiting cash withdrawal transaction to P100,000.

“We will respect and follow the decision of the BSP as a regulating body especially since the Comelec resolution may cause serious implications not only to the services we provide to our people in the countryside but also with the entire rural banking industry,” said Atty. Edward Leandro Garcia, RBAP President.

He added, “We are one with the Comelec in implementing all possible measures to ensure a clean and honest mid-term election. However, we still have to wait for a formal directive from the BSP whether to implement the same since they are our regulator.”

Earlier this morning, the BSP has already expressed opposition to Comelec Resolution No. 9688, citing that it “may disrupt normal business and commercial transactions in the country.”

BSP, in its official statement, also said they are constrained from enforcing the Comelec resolution as this would entail “looking into bank accounts,” which would be tantamount to a violation of Republic Act 1405 on Secrecy on Peso Deposits and Republic Act 6426 on Secrecy of Foreign Currency Deposits.

Comelec Resolution No. 9688 imposes a ban on cash withdrawals of more than P100,000 from banks and financial institutions five days before the elections. It also bans the “possession, transportation and/or carrying of cash” worth more than P500,000.#
_______________________________________________________________________________________
Bankers surprised by Comelec’s 6-day ban on large cash withdrawals
By Michelle V. Remo
Philippine Daily Inquirer
8:42 pm | Tuesday, May 7th, 2013

MANILA, Philippines — Banks remained confused and unaware of the details of the “money ban” ordered by the Commission on Elections, as of Tuesday, and which was reported to take effect on Wednesday (May 8) until May 13.

Edward Leandro Garcia, president of the Rural Bankers Association of the Philippines (RBAP), said members of the rural banking industry have not yet been formally informed of its guidelines and that banks have only heard about the ban from the press.

There are about 500 rural banks in the country.

“Right now, we have not been officially informed of the ban. If there is such a directive, then the Comelec should be communicating this with the BSP (Bangko Sentral ng Pilipinas), which in turn should be the one to give us (banks) the order because the BSP is our regulator,” Garcia said in a phone interview.

But reacting solely on what has been reported by the press, Garcia expressed doubt on the prudence of the money ban.
“If this is true, this might adversely affect business and trade transactions,” he said.

Under the money ban, bank withdrawals worth over P100,000 per day shall be prohibited starting Wednesday (May 8) until May 13. According to Comelec, the objective of the ban is to curb vote buying.

But Garcia said imposing the money ban might not be the appropriate measure to achieve the Comelec’s objective.

“If money would indeed be used for vote buying, the ban may already be too late. By this time, money allegedly for vote buying is highly likely to be already in the hands of the politicians,” Garcia said.

Meantime, a media relations officer from the Bank of the Philippine Islands said BPI has not yet received any formal order with regard to the money ban by the Comelec.

“We have not yet been officially informed about it as of this time. We have not received any directive from the BSP either,” the media relations officer said. She said BPI could not yet issue any notice to its clients as of press time because there should be a formal directive from the BSP.

As of press time Tuesday night, the BSP had not yet issued a statement on the money ban but said it was preparing to do so.

Nonetheless, Comelec itself admitted that the BSP was not supportive of the money ban.
_______________________________________________________________________________________
Basic Microinsurance Training Course – May 28-29, 2013
Posted: 05 May 2013 10:17 PM PDT
06 May 2013

TO : ALL PARTICIPATING RURAL BANKS

SUBJECT: BASIC MICROINSURANCE TRAINING COURSE FOR RURAL BANKS

Dear Fellow Rural Bankers:

RBAP-RBRDFI would like to invite you to the 22nd Basic Microinsurance Training Course on May 28-29, 2013. This 2-day live-out training will be held at the RBAP Conference Hall, RBAP Bldg., Intramuros, Manila.

This activity aims to enhance the capacity of rural banks to serve as effective access points for microinsurance services for its low-income clients. This training is also designed to ensure bank compliance with the following regulations:

- BSP Circular 683-2010: Marketing, Sale and Servicing of Microinsurance Products
- Joint IC-CDA-SEC Memo Circular 1-2010: Defining Government’s Policy on Informal Microinsurance Services
- Insurance Commission Memo Circular 1-2010: Regulations for the Provision of Microinsurance Products and Services (i.e. Institutional MI Brokers and Agents)

Target participants to the Basic Microinsurance Training are the following:

Bank Heads/Managers, Compliance Officers, Marketing Staff/Officers, Business Development Officers, Microfinance Supervisors, Loans Officers/Supervisors, Account Officers
We wish to reiterate the value of assigning two (2) or more participants from each bank, one of whom should be a permanent staff, able to serve as microinsurance soliciting officer or point person of his/her respective bank.

Registration Fees:
1) Early bird rate of Three Thousand Six Hundred Pesos (Php 3,600.00) only per participant if registration is made on or before May 17, 2013.
2) Regular rate of Three Thousand Eight Hundred Pesos (Php 3,800.00) will be charged per participant if registered after May 17, 2013.
3) For institutions which are not RBAP members, each participant will be charged Four Thousand Five Hundred Sixty (Php 4,560.00).

To register, kindly submit your accomplished nomination forms through fax numbers (02) 527-2980 or 527-2969 or email at rbapmicroinsurance@gmail.com. Should you have questions regarding training and/or licensing, please contact RBRDFI Microinsurance Project Coordinator Ms. Ghay Mapano at landline (02) 527-2972/0918-6353235 or RBRDFI Microinsurance Project Assistant Mr. Jay Salamero at (02)527-2968/09074771508.

We’re looking forward to your participation!

Sincerely,
Ian Eric S. Pama
Chairman, RBRDFI
View Invitation Letter and Training Agenda
Download Information Sheet and Confirmation Sheet
_______________________________________________________________________________________
PH banking sector remained profitable in ’12
By Michelle V. Remo
Philippine Daily Inquirer
2:38 am | Monday, May 6th, 2013

The country’s banking sector remained highly profitable in 2012, with the combined net income of small and big players growing by a double-digit pace as they ride on the gains of an expanding economy.

The Bangko Sentral ng Pilipinas reported Friday that total profits of rural, thrift, universal and commercial banks in the country amounted to P122.12 billion last year—up by 17 percent from the P104.73 billion posted in 2011.

Despite the world’s economic problems, “the Philippine financial system continued to deliver a remarkable performance in 2012 with sustained profitability and strong capitalization,” the BSP said in a report.

Philippine banks are in a position to help sustain the economy’s growth by extending loans to consumers and businesses, officials said.

The increase in overall profit was driven by the rise in incomes of universal and commercial banks, which accounted for P110.97 billion of the total. This amount was up by 20 percent from the P92.63 billion registered in 2011.

Profits of the country’s big banks were driven partly by income earned from lending activities and by non-interest earnings, which include gains from treasury operations.

On the other hand, thrift banks registered a contraction in earnings. Combined net income of thrift banks reached P8.32 billion—down by 10 percent from P9.26 billion.

The decline was brought on by an increase in operational expenses and losses from financial assets.

Rural banks accounted for P2.83 billion of the combined net income, the same as in 2011.

The growth in the industry’s overall profit came with the increase in total resources.

The Inquirer earlier reported that total resources of the banking system grew by 9.8 percent to P8.05 trillion in 2012 from that of the previous year.

The BSP said that Philippine banks outperformed their counterparts in Southeast Asia, in terms of asset quality and solvency.

The average nonperforming loans (NPLs) of banks hit a record low of 2.5 percent last year, while the average capital adequacy ratio (CAR) continued to exceed regulatory requirements at 16.9 percent.

With its strong finances, the banking sector will likely sustain lending growth of at least 10 percent this year, the BSP said.
_______________________________________________________________________________________
Philippines Receives Investment Grade Rating from Standard & Poor’s

Manila, 02 May 2013 – The Philippines today received investment grade rating from international credit rating agency Standard & Poor’s. In a statement released by the agency, the country’s sovereign long-term foreign currency rating was upgraded from ‘BB+’ to ‘BBB’ - with stable outlook. This upgrade by S&P comes after the Philippine sovereign received its first investment grade rating from Fitch Ratings in March this year.

Receiving news of the announcement, Department of Finance Secretary Cesar Purisima thanked the credit rating agency for the upgrade. “We are very pleased that S&P, along with Fitch, has also now affirmed the Philippines’ strong economic and fiscal gains,” Purisima said, adding that the investment grade rating “is another resounding vote of confidence on the Philippines.” Secretary Purisima further said that “good governance—tuwid na daan—is bringing structurally sustainable growth for the Philippines” and that “the Philippine Government will continue to focus on infrastructure development, on creating a larger fiscal space to support social investments, and on further opening up the economy.”

In its press release, S&P cited the following key drivers for the upgrade: strengthening external profile, moderating inflation and the government’s declining reliance on foreign currency debt. S&P highlighted that the “Philippines has built a substantial foreign exchange reserve buffer through having a long record of current account surpluses, along with modest net foreign direct investments (FDI) inflows and net portfolio equity inflows. The buffer makes for low refinancing risk and an import cover ratio well above prudential norms.” S&P also cited the country’s improved fiscal flexibility through restraining expenditures, reducing the share of foreign currency debt, deepening domestic capital markets, and more recently through modest revenue gains.

Governor Amando M. Tetangco, Jr. of the Bangko Sentral ng Pilipinas (BSP) said the S&P upgrade “undoubtedly cements the Philippines’ status as an economy with one of the brightest prospects globally.” Governor Tetangco also assured that the BSP will remain vigilant against risks associated with greater inflows. “With our investment grade rating, we are more confident that these inflows, particularly of more FDIs, will swing towards increasing the country’s productive capacity, thereby generating more employment and higher incomes,” the Governor stated.

Executive Director Claro Fernandez of the BSP’s Investor Relations Office (IRO) also reiterated that this latest rating action by S&P “is another key institutional recognition that the Aquino administration’s good governance framework is resulting in tangible and long-term economic benefits.”

With two of the three major Western credit rating agencies granting the Philippines investment grade status, the Philippine Government expects Moody’s, which still rates the country a notch below investment grade, to soon follow suit.

The Philippine government acknowledges the support of its advisors, Standard Chartered Bank, in particular Philippe Sachs (Global Head of Public Sector), Scott Wong (Director, Sovereign and Supranationals Debt Capital Markets) and Tom Lu (Associate, Sovereign & Supranationals Debt Capital Markets).
_______________________________________________________________________________________
Reminder From the Treasurer:
Good morning, please inform the member banks to fax all their deposit slip after making their payment or just text to this number, its so hard for the cashier of classic bank to guess as to whose member bank made such deposit based as to what was posted or credited on the bank Book.

Contact numbers:
043 723 0325 fax number
O43 723 5554
09175281009 luz
09178560439 jenny

Thank you, and hope this gmm will be a success one.

Good day . . .

Luz
_______________________________________________________________________________________
Dear Batangas Rural Bankers,

The Board of Directors will be convening a general membership meeting on:

Tuesday 28 May 2013
at 11:30 AM in the Luntian Resort and Restaurant, San Sebastian, Lipa City.

This meeting will present several case studies about recent BSP general examinations, i.e. what has improved, as well as what still needs to be improved, in the process of examinations and how their bank responded to issues raised by the examiners. You will appreciate the case study or sharing format because you will hear real-life experiences and best practices of our members. No holds barred. Note only rural bankers will be allowed inside the room for confidentiality. We are expecting more than three (3) member banks to participate in the lively presentations, sharing and discussion.

There will be a 15-30 min open forum where the audience can comment or ask questions.

Raffle prizes consisting of the latest electronic gadgets will be given to the lucky particpants.

Moderators will be Johnson Melo (Lipa Bank) and yours truly.

Recommended to attend would be Directors, CEO, COO, CCO and CO's of member banks. As usual, the first delegate of each member bank will be gratis et amore. The succeeding delegates will pay the discounted rate of P400 per person (cost of lunch only). We are requesting for early reservations and payments by no later than 21 May 2013 to help in the preparations of the banquet committee. Payments can be made in any of the following banks:

1. BDO kumintang ilaya branch savings acct no. 005090052558 Account name Classic rural bank Inc. batangas city, or

2. METROBANK rizal ave branch savings acct no. 1433143122264 Account name Classic rural bank inc , Batangas city.

Please call or fax deposit slip after. We expect a record number of attendees in this GMM. So reply by email or call us immediately for reservations. Please note that walk-ins during the actual meeting day (without advance payment) will have to pay the regular rate of P500 per person.

Bayanihan sa Batangas. At sa bayan.

Yours truly,

Ricky Estrada
President
_______________________________________________________________________________________
60th Annual National Convention, June 10-11, 2013 at Sofitel Philippine Plaza, Manila
Posted: 08 Apr 2013 01:33 AM PDT

Dear Everyone,

Greetings from the Rural Bankers Association of the Philippines!

We are pleased to furnish you the 2013 RBAP Annual National Convention circular.

The convention is on June 10-11, 2013 (Monday & Tuesday) at Sofitel Philippine Plaza Manila with the theme:

“Rural Banks: Championing Inclusive Growth in an Exclusive World of Banking”

To avail the discount, please note that the deadline for Early bird registration is on May 10, 2013 (Friday).


The deadline for filing the Certificate of Candidacy is on May 26, 2013 (Sunday).


Thank you for your usual support and we hope to see you there!


For more updates, please visit www.rbap.org
Download 2013 Convention Registration Form here Download 2013 Election Circular here
 
 
 
FBRB | Federation of Batangas Rural Bankers
2013
Website powered by: Pinoys Interactive