 |
 |
|
|
       |
ACCEPTANCE SPEECH |
|
By Senen D. Glorioso
(Delivered on the occasion of the Induction of Officers and Directors of the Rural Bankers Association of the Philippines on 30 June 2004 at Century Park Hotel) Governor Rafael B. Buenaventura… Good Evening Ladies and Gentlemen: Tonight, we are happy to reiterate to you positive developments that are in place in the rural banking industry. Past President Danny has presented the accomplishments of the Rural Bankers Association of the Philippines that will impact significantly on the strength and stability of the rural banks. The rural banks have overcome many obstacles in the past years to provide financial services to depositors and creditors in the countryside. I believe that the rural banking industry performed better in terms of deposit mobilization, loans and asset quality management. Deposits rose by 14% from P54.5 billion of 2002 to P62.2 billion in 2003. With a stronger deposit base rural banks loan portfolio grew by 10% from P50.8 billion in 2002 to P56 billion in 2003. These resources were mainly devoted to loans to agriculture, transportation and communication as well as trade and private households. Overall, the industry earnings grew by 33% to P1.5 billion in 2003, and return on equity moved up to 11% in 2003 from 9% in 2002. Likewise, return on assets improved to 1.7% from 1.5%. Further, as of latest figures, there are presently 765 rural and cooperative banks with more than 1,921 head offices and branches in the Philippines. We are aware of the many challenges to rural banking. Competition is tough these days, and will be tougher in the next years. Computerization and management tools and standards of operating efficiencies must therefore be widely utilized, adopted and improved. RB 2000 software in its improved version is a viable option in this direction. The industry’s non-performing loans declined by 23% from P8.6 billion to P6.6 billion in 2003. However, much work remains to be done in reducing the level of acquired assets from the 1% sold and disposed of in 2003. Provisioning for losses may have to be increased from the present 21% of the NPAs in 2003 to approximate the industry’s average of 33%. It is in these areas of key concerns that the Rural Bankers Association of the Philippines is committing its resources and organization. We will step up delivery of governance, risk management and technical as well as soft training modules to our members in collaboration with our 39 federations all over the Philippines. Our roadshows and education modules will be conducted with the support of our organization partners such as BSP, PDIC, BAIPhil, Land Bank, PBSP and our host of individual partners. In the compliance issues, we will help obtain wider cooperation and fulfillment of requirements of BSP, AMLC, PDIC and other government institutions. We are pleased to report that RBAP is working closely with the BSP Institute and the Supervision and Examination Sector to train rural banks in adopting the unified General Ledger and Subsidiary Ledger Reporting System. Technical trainings in all 39 Federations will be conducted in the next four months. RBAP is likewise rallying its membership to step-up compliance with the anti-money laundering law through our information dissemination drive and training interventions. We wish to highlight the nascent collaboration with the Anti-Money Laundering Council to simplify the registration process for RBs. Several rural banks outside Metro Manila have benefited from this simplified process. At the same time, we are encouraging our members to computerize their systems to, among others, facilitate the generation and submission of the relevant reports due to the BSP, the Anti-Money Laundering Council and to other government agencies. We have supported the amendment of the PDIC Charter particularly in communicating to our legislators the benefits that would accrue to 99 percent of our depositors with the increase in the insurance coverage to P250,000. Rest assured that our activities will incorporate updates and reminders about regulatory compliance more intensely using primarily the RBAP website. Our partnership with USAID is very productive. The current technical assistance and training given to rural banks in micro-finance best practices has rolled out 62 rural bank graduates with 157 head offices and branches all over Mindano, Visayas and Luzon as of May, 2004 and disbursed cumulatively a total of P4.03 billion micro-finance loans with 377,142 cumulative micro-finance loan transactions. Adjusted to remove repeat borrowers, the MABS program lent a total of 132,227 borrowers, generated P345 million new deposits from a total of 224,953 new deposit accounts. Portfolio at risk (PAR less than 30days) is 3.83%. The micro-finance practice of rural banks is indeed attaining very positive results. What is more important to note is that with the MABS approach, a revolutionary change in the management of loans and deposit is happening among rural banks as they search for viable, sustainable and controllable credit vehicle to help spur development in their respective communities and earn profitably as well. Market research, no-nonsense product development, cash flow based lending, mandatory savings, zero tolerance to delinquency and detailed MIS including software RB2000 are critical elements of MABS culture that has transformed the rural banks into responsive partners of government to help the entrepreneurial poor. Toward this end, we fully support the BSP in its advocacy of micro-finance loans, as well as its initiative to establish a credit bureau. In the meantime, we will continue to implement our present understanding with the BAP Credit Bureau for the negative list sharing. Moreover, we will encourage our strategic partners to offer improved and responsive insurance packages to micro-finance borrowers for mutual benefits. In the provinces, many of our clients are family beneficiaries of OFWs. We know them personally, and they are comfortable dealing with us as regards to their allotments and regular inward remittances. These money pay for important bills, education, shelter and food. Any delay is a cause of concern and pain to household members. We will therefore give attention to improvements in our members’ capability to deliver such important services including bills collection and fund transfers to assure our clients of peace of mind. Rural banks are physically present in 71% of 3rd to 6th class municipalities all over the Philippines, and have 18.5% small depositors of the total depositors in the banking system. These positioning created by our being small and spread out in the countryside is indeed a big advantage to reckon with. With our website, communication and knowledge of banking issues, events and regulations are delivered on time and more efficiently. ROPOAs are being listed in the website for wider circulation and since December 2003 hits and inquiries are increasing exponentially. We will continue to work for our legislative agenda towards the approval of the amendments to the rural banking act of 1992, and with the understanding and support of our friends in the Congress, we hope to attain an equitable and progressive tax incentives as we persevere to work against poverty in partnership with government and other stakeholders in the countryside. I am very thankful for your presence this evening. Your presence is evidence of your being one with the rural bankers in promoting countryside development and progress. A few hours ago, this country held the inauguration of the ----- President of the Philippines. We are privileged to have our little induction held in the same day. We hope that with your support, together we can make meaningful contribution to the government’s commitment in the countryside through agricultural productivity, entrepreneurship and micro-finance. Maraming salamat po.
|
 |
Circular Letters/Memoranda |
|
Speeches/ Presentations |
|
Photo Gallery |
|
The 2008 RBAP Charter Symposium |
|
2008 CFI Awards |
|
Rural Banking Week Celebration Golf Tournament |
|
Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
|
Financial Reporting Package 2008 |
|
BSP releases regulations on liquidity, market risk weighting |
