Archives for 2015

BSP Circular No. 895: Guidelines on Related Party Transactions

The Bangko Sentral ng Pilipinas (BSP), through the Monetary Board, issued a resolution dated 13 November 2015 approving guidelines on related party transactions (RPTs) of banks and their non-bank financial subsidiaries and affiliates.

Section X146 of the Manual of Regulations for Banks (MORB) shall now read as follows:

The Bangko ng Sentral ng Pilipinas recognizes that transactions between and among related parties create financial, commercial and economic benefits to individual institutions and to the entire group where said institutions belong. In this regard, related party transactions are generally allowed provided, that these are done on arm’s length basis. The BSP expects banks, inclusing their non-bank financial subsidiaries and affiliates, to exercise appropriate oversight and implement effective control systems for managing said exposures as these may potentially lead to abuses that are disadvantageous to the bank and its depositors, creditors, fiduciary clients , and other stakeholders.

Other related sections were also accordingly amended.

To download full copy of BSP Circular, please follow link:http://rbap.org/wp-content/uploads/2015/12/c895.pdf

BSP and Industry Launch the National Retail Payment System

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National Banking Week 2016

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Strategic Planning & Performance Management – Feb 12-13 2016

Date: February 12-13, 2016 (Friday – Saturday)
Venue: Gov. Licaros Hall, RBAP, Intramuros, Manila
Time: 8:30am to 5:00pm

Resource Persons:
Ms. Alicia Bautista, MBA
– Dept. Manager –LBP
– handles the Enterprise-wide Risk Management Program

Ms. Olimpia N. Cruz, MBA
– Human Resource Management Officer –LBP
-provide administrative support in the establishment of the Bank’s performance and rewards program and policies

Seminar Fee:

1. Early bird – P4,500 (on or before Jan 22)
2. Regular Rate –P4,900 (After Jan 22)
3. Non-Member/Delinquent – P5,880

Mode of Payment
• A Non-Refundable commitment fee of P2,450.00 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:

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 February 09, 2016.

1. Reservation via telephone conversation is accepted. However,
Registration Form and fee must be settled 10 days prior the seminar date or February 01, 2016. Otherwise, reservation is considered cancelled.

2. 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, Discussions and Case Studies / Simulations. The lecture will provide the requisite concepts on the topic while the workshop will provide an avenue to apply the concepts learned.

Expected Participants

President, BOD members, Corporate Planning Officer, HR/Admin Head and Head Departments/Branch Managers

Scope & Limitations

It shall cover the basic concepts of strategic planning and performance management. Practical illustrations’ are used for better appreciation, as well as basic templates that can customize and utilize by the bank.

I. Objectives

• Understand the process of devising or employing plans or stategems toward a goal.
• Learn the important ingredients for an effective initiation, conduct, or completion of strategic plan.
• Equip the participants with insights in effectively conducting steps in the Performance Management Cycle.
• Recognize the role of internal audit in corporate governance, risk management and controls
• Enable the participants to establish and implement a Performance Management Program in their respective institutions.

Course Outline

A. Strategic Planning
➢ Understanding strategic Planning
➢ Basic description of Strategic Planning and a comparison to
Operational Planning and Business Planning.
➢ Difference Models of Strategic Planning
➢ Strategic Planning Process
➢ Monitoring the Strategic Plan

B. Performance Management
➢ Basic Concepts of Performance Management

➢ The Performance Management Cycle
*Planning
*Progress review and monitoring
*Rewarding and development planning
*Performance Management System implementation review

➢ Basic components of a Performance Management form
– Workshop in crafting work targets and performance standards – SMART

Download the Confirmation Sheet in PDF

Remedial Management Seminar – Feb 4-5 2016

Date: Feb. 04-05, 2016 (Thursday -Friday)
Venue: Gov. Licaros Hall, RBAP, Intramuros,
Time: 8:30am to 5:00pm

RESOURCE PERSON
Mr. Tito C. Tirones
– Bank & SME Consultant/Trainer
Judge Maria Zenaida Bernadette Mendiola
-RMC Lawyer/Bank Trainer -Consultant

SEMINAR FEE
1. For Member only
a. Early bird – P4,500 (on or before Jan. 15)
b. Regular Rate – P4,800 (After Jan.15,2016)

2. Non-Member/Delinquent – P5,520

MODE OF PAYMENT
Check payable to:

Rural Bankers Research & Development Foundation Inc.

Non-Refundable commitment fee of P2,400.00 per participant.

Bank: LBP – Intramuros, Branch
Account Name: RBRDFI
SA No. 0012-1046-26.
Telefax (02) 527-2969 /527-2980

EXPECTED PARTICIPANTS
President, Director, Loan Officers, Remedial & Credit Officers, Branch Managers

DEADLINE TO SUBMIT REGISTRATION: February 01, 2016.

Course Objectives
• The course will establish the fundamentals of loan accounts management, Remedial Accounts Management and recovery.
• Enable the participants to gain actual and factual lessons in the
conduct of Accounts Remedial Management.
• Provide insight of another possible approach of conducting ARM
• Acquaint in various legal strategies in handling problem accounts
• Be familiar with the basic legal provisions relative to the foregoing remedies, to differentiate one from the other, to avoid common legal pitfalls in the application.

Course Outline

DAY 1
a. General Overview of Accounts Management.
Why go in Remedial Management
The importance of RM in the overall account management process
Actual practice of RM vs what should have been.

b. Risk Identification Process
How a loan becomes a problem
Early Warning Signs of a Deteriorating Account

c. Remedial Management Process
Organizational set-up or RM Unit.
Mindset of officers in handling RM accounts
Actual handling of Remedial Accounts

DAY 2
I. Legal Strategies in Remedial Management
Preliminary Steps
Non-adversarial methods
Adversarial proceedings

II. Basic Legal Concepts, Related Laws and Legal Requirements
a. Dacion en Pago
b. Restructuring
c. Rehabilitation
d. Foreclosure (REM,CHM, Pledge, Deed of Assignment)
e. Collection Cases
f. Filing of Criminal Cases

Summary
• Stress the importance of having credit policies, procedures and credit risk management system in place.
• Highlighting the BOD role and responsibilities
• Advises FI to perform GAP Analysis as required by BSP Cir. 855

Download the Confirmation Sheet in PDF

BSP Memorandum No. M-2015-042: Implementing Guidelines for the Consolidation Program for Rural Banks (CPRB)

The Bangko Sentral ng Pilipinas (BSP), the Philippine Deposit Insurance Corporation (PDIC), and the Land Bank of the Philippines (LBP) have approved the attached lmplementing Guidelines for the CPRB which became effective on 25 August 2015 and shall be available until 25 August 2017

The lmplementing Guidelines set out the eligibility requirements for proponent banks, the procedures for application and the related documentary requirements, the program supports and regulatory incentives. For proponent banks that wish to avail of the Equity Investment Facility from the LBP under the program, their eligibility shall be subject to the Guidelines on the LBP Equity Investment Facility (Annex A).

For guidance and immediate implementation.

To download copy of BSP Memo, please follow link: http://rbap.org/wp-content/uploads/2015/12/m043.pdf

BSP Memorandum No. M-2015-041: Adoption and Implementation of Enhanced Microinsurance Regulatory Framework

To download a copy, please click on this link: m041

BSP Economic Update (as of November 3)

Real sector

  • Real GDP for Q2 2015 grew by 5.6% from 5.0% in Q1 2015 (albeit lower than the 6.7% growth a year ago) due to accelerated consumer and government spending as well as increased investments, particularly in construction.

  • Supply side: Services sector continue to drive growth (6.2% yoy), supported by the following sub-sectors: real estate, renting and business activities (6.8%); trade and maintenance of motor vehicles, motorcycles, personal and household goods (6.1%); transport, storage & communication (5.9%); and financial intermediation (5.8%).

  • Demand side: The main drivers of grown were the robust performance of household consumption (6.2%), expansion of capital formation (17.4%), particularly construction (13.1%), and faster government spending (3.9%).

Monetary sector

  • In September 2015 inflation decelerated further to 0.4% from 0.6% in August. This was attributed mainly to lower prices of selected food items (rice, corn, oils and fats as well as other key food items such as fish, fruits, milk, cheese, and eggs) due to adequate supply. Likewise, non-food items (electricity, gas, and other fuels) decreased due to lower generation charges for household electricity rates and price rollbacks of domestic petroleum products.

  • Year-to-date average inflation rate of 1.6% was at the lower end of the government’s 3.0% ± 1.0 percentage point target range for 2015-2016. The government also approved an inflation target range of 3.0% ± 1.0 percentage point for 2017-2018.

  • Risks to future inflation continue to be broadly balanced. While latest baseline inflation forecasts have shifted further downward to average lower than target for 2015, it is expected to continue to be within the target range over the remainder of the policy horizon.

    • Upside risks: impact of stronger and protracted El Niño on food prices and utility rates as well as pending petitions for power rate adjustments.

    • Downside risk: weak global economy and continued uncertainty in global financial markets.

External sector

  • Personal remittances from OFs for January-August 2015 reached US$17.9 billion, higher by 3.9% yoy.

  • International reserves remains adequate at US$80.6 billion as of end-September 2015, which could cover 10.3 months’ worth of imports of goods and payments of services and income.

  • External debt-to-GDP ratio declined to 25.7% as of end-July 2015 from 28.7% in the same period last year.

  • On a year-to-date basis, the peso depreciated against the US dollar by 4.5% on 30 October 2015 as it closed at P46.82/US$1, moving in tandem with other Asian currencies.

  • Commodity prices: (US$/MT)

Commodity*

Sept. 2015

Aug. 2015

% change (month-on-month)

Copra

699

689

1.5

Raw Sugar

260

250

4.0

*Source: World Bank Commodities Price Data released on 2 October 2015

Banking sector

  • Total resources of the banking system declined slightly by 1.5% to P11.4 trillion as of end-March 2015 from a quarter-ago, but increased by 8.7% from the year-ago level.

  • The banking system is also adequately capitalized. The CAR of U/KBs at end-March 2015 stood at 15.07% and 16.10% on solo and consolidated bases, respectively, higher than the BSP (10%) and BIS (8%) standards.

  • The gross NPL ratio of the rural banking system decreased to 11.68% as of June 2015 from 11.92% a quarter earlier. Meanwhile, rural banks’ loan loss reserves stood at 62.0% of their gross NPLs as of June 2015, higher than the 57.4% in the previous quarter.

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58th Charter Anniversary Symposium

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Senator Sonny Angara, author of the Financial Literacy Education bill, which aims to train youth on entrepreneurial and financial skills by integrating said subjects in the secondary education, attended the symposium as its keynote speaker. He stressed that everyone should partake in making financial inclusiveness possible by making the financial system more “maka-masa.”

58th Charter Anniversary Symposium

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Day 2 session speakers AGFP Program executive director Edna Atienza, DTI-RUMEPP program manager Jerry Clavesillas, MSME Finance Specialist Group acting deputy director Rino Zerna, BSP Director Lorna Aquino and BSP acting manager Alexis Lagura

58th Charter Anniversary Symposium

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Alongside forging of new partnership with rural bankers thru new online app Lendr, Smart Communications—Voyager Innovations Inc., chairman Manny V. Pangilinan also delve on the concern for stronger internet connectivity in the country and has pledged to help rural banks improve their current internet service.

58th Charter Anniversary Symposium

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Philippine Deposit Insurance Corporation president Cristina Orbeta encouraged rural banks to further look into the benefits of Consolidation Program for Rural Banks (CPRB) as it is set to improve financial strength and enhance long-term viability of mergers.

58th Charter Anniversary Symposium

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Bangko Sentral ng Pilipinas Deputy Governor Nestor Espenilla Jr.,is present on the first day of RBAP Symposium as keynote speaker. Once again, he encouraged rural bankers to use their advantage of knowing the grassroots to serve the rural areas.

58th Charter Anniversary Symposium

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Camarines Sur representative and Vice-presidential candidate Leni Robredo graces RBAP’s 58th symposium as its special guest on the second day, November 10, 2015.