Pricing Transparency Workshop (EIR) – July 30,2012

FROM  	:MA. CORAZON L. MILLER, Chairperson

                  for Truth in Lending

Dear Fellow Rural Bankers:

The Bangko Sentral ng Pilipinas (BSP) has issued Circular 730 and the
accompanying Memorandum M-2011-040 on regulations and calculation for
Effective Interest Rates (EIR) for all types of loans last year. The July
1, 2012 start of these rules have huge implications on how we disclose
rates, remain competitive, and earn from all our lending operations.

I encourage rural banks to understand thoroughly the impact it will have
on our customers, especially on how they perceive the new effective
interest rates in contrast to current nominal rates. I encourage you to
look at the banks loans that still use flat or add-on rates and see how
the shift to those based on declining balances will affect the bank’s
profitability and competiveness. If this has not been done yet, then we
need to catch up since July 1 is less than 5 months away. Preparation is
key to adopting the new rules.

To this end, the Rural Bankers Research and Development Foundation
(RBRDFI) with the support of the Bangko Sentral ng Pilipinas (BSP) will
have a series of MUST-attend seminars on the new pricing transparency
rules that will be rolled throughout the country. The seminar will teach
us how to calculate the EIR, modify our loan products; strategies to
better manage interest rates and fees, and implement action items to
prepare our bank in response to the regulation.

Participants to these events are advised to bring the following items to
maximize the learning opportunity:
1. Laptop running on Windows OS with MS Excel spreadsheet software (if
2. Rural Bank data on sample loan product with flat rates:
– Interest rate
– Finance charges
– Term of the loan
– Other conditions (forced savings amount, mandatory insurance); and,
– Frequency of collection.
3. Rural Bank sample disclosure forms

Registration Fee
i)   P2,200.00 per person –regular rate;
ii) P2,000.00 per person – registration two weeks (July 13) before the
            iii) P2,700.00 non-member rural banks , to avail of the
regular registration fee,
           non-member banks are encouraged to apply for membership with
            RBAP/RBRDFI. Please call RBAP for details.

For your reservations, kindly observe our training policies:

1.	Deadline for submission of registration is not later that July 24, 2012.
a)	Confirmation Sheet of the participant(s) duly endorsed by the bank’s
2.	A Non-Refundable commitment fee of P900.00 per participant (50% of the
registration fee). Payments can be remitted to the Rural Bankers Research
and Development Foundation, Inc. bank account (Land Bank of the
Philippines – Intramuros Branch Savings Account Number 0012-1046-26).
Proof of payment (i.e., deposit slip) should be sent immediately
verification at (02) 527-2980. Check payments, should be payable to Rural
Bankers Research and Development Foundation, Inc. (RBRDFI)
3.	Reservation via telephone conversation is accepted. However,
Registration Form and fee must be settled 10 days prior the seminar date
or July 13, 2012. Otherwise, reservation is considered cancelled.
3	Cancellation Policy:
a)	10 days prior the seminar date is entitled for a full refund. *
b)	3 days prior to the seminar date is entitled for a half refund
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.
For special cases (health, accident etc.) will require written
information. Kindly coordinate with RBRDFI staff for refund procedures and

Acceptance of reservation is on first come first-served basis; only thirty
(30) participants will be accommodated per session.

Please note that this is a live-out seminar.

Thank you very much.

Download the Confirmation Sheet in PDF