Archives for 2016

2016 RBAP Symposium Presentations (Day 2)

October 25 (Day Two)

Secured Transactions Reforms
Ms. Gay Santos
Senior Financial Sector Specialist, International Finance Corporation

Atty. Chester Abellera
Finance And Markets, International Finance Corporation

Managing Risks
Mr. Remigio Tito Tirones
Independent Consultant for Rural Banks

Pushing Boundaries Towards Inclusive Growth
Mr. Lito Villanueva
Managing Director & CEO, FINTQ/Voyager

Lowering the Cost on Inclusion for Financial Institutions Through the Cloud
Mr. Nicolas Schweitzer
Managing Director Asia, Oradian Group
Ms. Tanya Hotchkiss
Executive Vice President, Cantilan Bank

Enhancing the Bank’s Operational Risk Management Framework
Ms. Chuchi G. Fonacier
Managing Director, Bangko Sentral ng Pilipinas

Technology and Inclusive Business for Growth
Mr. Vince Rodriguez
Category Head for Business Efficiency, PLDT SME Nation

PANEL DISCUSSION: Expanding Rural Bank Opportunities

Moderator:
Ms. Teresita E. Cheng
Risk Management Expert

Computerization of RB System
Mr. Anselmo Paras
Logicos

Payments and Remittance
Ms. Eleanor Turaray
Deputy Director, Payments and Settlements – Bangko Sentral ng Pilipinas

Securing your Agricultural Credit
Ms. Edna Atienza
Program Executive Director, Agricultultural Guarantee Fund Pool

National Retail and Payment System
Mr. Raymond O. Estioko
Deputy Director, Bangko Sentral ng Pilipinas

2016 RBAP Symposium Presentations (Day One)

October 24, 2016 (Day One)

Keynote Speaker
Mr. Gil S. Beltran
Undersecretary, Department of Finance

Keeping the Rural Market Niche
Mr. Rex C. Drilon II
Trustee, Institute of Corporate Directors

Cash Management Solution for Rural Banks
Ms. Ninna Richelle H. Veran
Cash Management Service Department, Land Bank of the Philippines

Status of Rural Banks: Challenges and Opportunities
Mr. Vittorio Z. Almario
Trustee – RBRDFI & President, Rural Bank of Mati, Inc.

To download Mr. Almario’s speech, click 2016-symposium_speech-mralmario

Settng the Industry Roadmap for Rural Banks

The Agenda for Change in the Rural Banking Sector
Mr. Ricardo Nicanor N. Jacinto
Chief Executive Officer, Institute of Corporate Directors

Credit Analysis & Loan Packaging Seminar – Dec 08-09

CREDIT ANALYSIS & LOAN PACKAGING SEMINAR

Date: Dec 08-09, 2016 (Thursday- Friday)
Venue: Gov. Licaros Hall, RBAP, Intramuros,
Time: 8:30am to 5:00pm
RESOURCE PERSON
Ms. Maria Julma M. Jongco
– Financial Services Advisor/Consultant –(Bank, Insurance & SME), Trainer

SEMINAR FEE

  1. For Member only
    a. Early bird – P4,500 (on or before Nov 18)
    b. Regular Rate – P4,800 (After Nov 18. 30)
  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
Marketing & Business Dev. Officer, Loan Officers, Account Officers,
Remedial & Credit Officers, Branch Managers

DEADLINE TO SUBMIT REGISTRATION: Dec 02, 2016.

Course Objectives

  • Understand the lending process cycle
  • Identify relevant criteria to assess credit worthiness
  • Provide theoretical basis for credit principles and process
  • Develop the appropriate loan package based on actual, identified, and
    cash flow analysis.
  • Perform Credit Analysis in reviewing financial statements.
  • Use a common spreadsheet format in analyzing financial statements

Methodologies
The course will be discussed in the point of view of lenders/account
officers and decision makers.We will use a combination of lecture and
workshops. There will be a short lecture, exercises on account
profitability analysis, financial spreadsheet and financial and cash flow
analysis. Writing a credit proposal.

  • Laptop and calculator
  • Sample loan approval ***

Course Outline

DAY 1
➢ Settling the Lending Criteria and eligibility requirements.
➢ Overview of BSP relevant circulars pertaining to credit evaluation.
➢ Guidelines in prescreening the borrower and know the essential
information needed.
➢ Credit Principles
➢ Determination of working capital and project cost estimate.
➢ Lending process flow overview
➢ Types of Credit Facilities
➢ Amortization schedule
➢ Discount versus in arrears interest

DAY 2
a. Account Profitability Analysis
b. Collateral evaluation
c. Financial analysis and cash flow
d. Relevant Ratios
e. Understanding the spreadsheet
f. Standard Line Wording
g. Credit Proposal Format
h. Actual Credit Proposal preparation
for selected accounts.

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 Files: Credit Analysis & Loan Packaging Seminar Circular and Confirmation Sheet

PROGRAM: RBAP 59th Charter Anniversary Symposium

RANG-AY BANK, SSS 2016 Balikat ng Bayan Best Collecting Partner Bank

rang-ay-sss2The national award was presented by Dept. of Finance Secretary Carlos Dominguez and SSS President Emilio de Quiros, Jr. to Rang-ay Bank Vice-President Ives Jesus Nisce II at the national awarding ceremonies held at the SSS Main Office, East Avenue, Diliman, Quezon City on September 2, 2016.

The 2016 Balikat ng Bayan Best Collecting Partner Bank (rural bank category) was awarded to Rang-ay Bank, for consistently being among the nation’s top institutions with the highest collections and processing a large volume of transactions with its wide coverage. Rang-ay Bank was the only rural bank national awardee of the Social Security System for the year.

 

BSP Supervisory Process & Examination Approach on Bank’s Compliance – Nov 25 Hotel Jen Manila

One-Day Orientation/Briefing on BSP Supervisory Process and Examination
Approach on Monitoring Bank’s Compliance with the Single Borrower’s Limit

The Bangko Sentral ng Pilipinas, through the Central Point of Contact
Department III (CPCD III) and Examination Department III (ED III) and in
partnership with the Rural Bankers Association of the Philippines (RBAP)
invite you to attend the One-Day Orientation/Briefing of BSP Supervisory
Process and Examination Approach on Monitoring Bank’s Compliance with the
Single Borrower’s Limit.

DATE & VENUE
November 25, 2016 (Friday) Time: 08:00 AM – 05:00PM

Ambassador Sala Room
Hotel Jen Manila 3001 Roxas Blvd., Pasay City Tel. No. 795-8888

REGISTRATION FEE

Ph 1,500.00 /pax

Bank: LBP – Intramuros, Branch
Account Name: RBRDFI
SA No. 0012-1046-26.
Telefax (02) 527-2969 /527-298

RESOURCE SPEAKERS

Bangko Sentral ng Pilipinas

CARYL T. VALDEZ – Deputy Director, ED III ARLENE AGUINALDO – Deputy
Director, CPCD III

TOPICS

  1. BSP Supervisory Process
  2. Compliance System
    * Expectations of Compliance System
  3. BSP Supervisory Enforcement Policy
    * Enforcement framework
  4. Expectations on Compliance with the Single Borrowers Limit (SBL)

EXPECTED PARTICIPANTS:
President, Chief Compliance Officers and Heads of Credit Risk Management
(CRM) /Loans Department

Should you be interested, kindly submit the CONFIRMATION FORM
training@rbap.org on or before November 18, 2016. Lunch and
morning/afternoon snacks will be served. Please note that this is a
live-out seminar. Accommodation is on a first come, first serve basis due
to seats limit.

Download File: Circular and Confirmation Form

Advanced Course on Property Appraisal – Dec 02-03

Advanced Course on Property Appraisal

Date: Dec 02-03, 2016 (Friday-Saturday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:30pm
Resource Person: Engr. Ferdinand Bocobo
Senior Property Manager, BDO

Seminar Fee

  1. For Member only
    a. Early bird – P4,500 (on or before Nov 11)
    b. Regular Rate – P4,800 (After Nov 11)
  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

Seminar Methodologies

Lectures & Actual Computations

Expected Participants

Appraisers, CI, Loan Officers, Branch Manager, Credit Risk Officer and
President

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 File: Advanced Course on Property Appraisal Circular and Confirmation Sheet

Stand-Alone TBs and RCBs Remain Well-Capitalized

09.30.2016

Stand-alone thrift banks (TBs), and rural and cooperative banks (RCBs) remained well capitalized at end-December 2015.

The Capital Adequacy Ratio (CAR) of TBs stood at 19.80 percent at end-December last year, higher than the 19.56 percent posted by the banks a quarter earlier.

The TBs’ CAR rose quarter-on-quarter as the growth in the banks’ total qualifying capital (TQC) outpaced the rise in their risk weighted assets (RWAs) during the period amid profitable operations.

The RCBs, on the other hand, posted a CAR of 18.50 percent at end-2015. The RCBs’ CAR decreased from the 18.77 percent recorded at the end of the third quarter last year as their RWAs rose at faster rate than their TQC quarter-on-quarter.

The capitalization of stand-alone TBs and RCBs remained mainly composed of Tier 1 which refers to common equity and other qualified instruments.

At end-December 2015, Tier 1 ratios of stand-alone TBs and RCBs stood at 18.25 percent and 17.36 percent, respectively.

The stand-alone TBs and RCBs accounted for 3.2 percent of the Philippine banking system’s assets at end-2015. These entities adhere to the Basel 1.5 capital framework for stand-alone banks with simple operations.

The banks’ strong capital position indicates their continued effort to set aside sufficient buffer against unexpected losses that may arise in times of stress. This is in line with the mandate of the Bangko Sentral ng Pilipinas to promote financial stability.

Source: http://www.bsp.gov.ph/publications/media.asp?id=4191

Compliance Mgmnt System Assessment – Nov. 17-18

Compliance Management System Assessment

Date: Nov. 17-18, 2016 (Thurs. – Friday)
Venue: RBAP, Intramuros, Manila
Time: 8:30am to 5:00pm
Resource Person:
Mr. Diego B. Ledda, Jr.
Trainer/Consultant -Management
& Financial Consultancy Services

Seminar Fee

  1. For Member only
    a. Early bird – P5,000 (on or before Oct. 21)
    b. Regular Rate – P5,400 (After Nov. 21)
  2. Non-Member/Delinquent – P6,480

MODE OF PAYMENT
Check payable to:

Rural Bankers Research & Development Foundation Inc.

Non-Refundable commitment fee of P2,800.00 per participant.

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

LEARNING OBJECTIVES
 The seminar is intended to provide guidelines on the tasks,
duties and responsibilities of Compliance Committee Members (Directors)
and Compliance Officers to Bank Management and regulatory bodies, such as;
the BSP, SEC, DOLE, BIR, etc.
 To come up with Evaluation and Assessment Tools and reports
related to the bank’s structure and operations.
 To serve as guide in preparation of Compliance Program.
 To serve as guide in preparation of Compliance Monitoring Report.
 To learn how to prepare Stress Testing for Loans; and Business
Continuity Plan (BCP) & Disaster Recovery Plan (DRP)
 To learn to assess BOD, Directors, Committees, etc.

EXPECTED PARTICIPANTS

Compliance Officer, President, Director, Branch Manager, Internal Auditor,
Credit Risk Officer, and IT Audit

COURSE OUTLINE

DAY 1

A. Introduction
a. Business Risks Affecting Capital and Earnings
b. Rationale and Elements of Compliance System
c. Basis of Mandating Compliance Review System
d. Corporate Policy Framework

B. General Purpose of Compliance Function
a. Compliance Functions for Rural Banks
b. Oversight Functions
c. Sample Compliance Structure of Complex and Simple Rural Banks
d. Structure and Relationships with Other Functions of Rural Bank
e. Communicating Compliance Matters
f. Expected Corporate Policy
g. The Chief Compliance Officer
h. Duties and Responsibilities of Compliance Officer
i. Rights and Authorities of Compliance Officer

C. The Compliance Program and Differentiation from Other Bank’s Programs
a. Reasons in Adopting Compliance Program
b. Objectives of Compliance Program

D. Structural Components of Compliance Program
a. Evaluation Criteria in Compliance Risk Assessment
b. Enforcements, Sanctions and Rewards
c. Solutions and Remedies

DAY 2

  • Power of BSP to examine Banks
  • Activities Considered as Unsafe and Unsound Practices
  • Prompt Corrective Action Framework
  • Requirements in Declaring Dividends
  • Stress Testing and Sample
  • Loans
  • Business Continuity
  • Sample Assessments
  • Board of Directors
  • Committee
  • Individual Director
  • Senior Management
  • Internal Auditor
  • External Auditor
  • Consultants
  • AML
  • Information Technology

• Workshop:
• Prepare Stress Testing for Loans
• Prepare Stress Testing of BCP-DRP
• Prepare Annual Assessments

Required:

  • Bring laptop per Bank/Participant
  • Bring BCP-DRP Manual
  • Bring List of Top 30 Loan Borrowers per Bank with the following information

Name of Borrower Outstanding Principal
Bank’s Status Classification
No. of Days Past Due Allow for Credit Losses

Download file: Compliance Management System Assessment Circular and Confirmation Sheet

Risk Management Concepts & Application – Nov 10-11

Risk Management Concepts and Applications

Date: Nov. 10-11, 2016 (Thu-Fri.)
Venue: Gov. Licaros Hall, RBAP Bldg, Intramuros, Manila
Time: 8:30am to 5:00pm

Resource Person:
Ms. Teresita E. Cheng
Sr. Bank Executive Officer from LBP, Trainer Trust Asset Management & Risk
Management.

Seminar Fee:
1. Early bird – P4,500 (on or before Oct. 14, 2016)
2. Regular Rate – P4,900 (After Oct. 14, 2016)
3. Non-Member/Delinquent – P5,880
Mode of Payment
• P2,450.00 – Non-Refundable commitment fee per participant.
•Account Name RBRDFI
LBP – Intramuros Branch
•Savings Account No.0012-1046-26).
•Proof of payment fax to (02) 527-2980.
•Check payments, should be payable to (RBRDFI).

Seminar Methodologies

Lecture, Discussions and Case Studies/ Simulations

 

Expected Participants

Compliance Officer, Internal Auditor, Risk Management Manager, Credit Risk
Officer, Risk Management Committee –Director, President, Branch Managers

Course Outline

A. Risk and Risk Management
a. Risk Defined
b. Risk Characteristics
c. Risk Management Defined
d. Risk and Capital
e. Risk Reward – Risk Return Concept
f. Units Involved in RM
g. Levels of RM
h. RM Framework and Approaches

B. Contextualizing Risk Management
a. Nature of Rural Bank’s Operations
b. Regulatory Framework
c. Sources of Funds
d. Scale of Operations
e. Clients/borrowers & projects
f. Types of clients structure

C. Risk Management Process and Application

D. Workshop/Case Study – Stress Testing Scenario Analysis
Synthesis

Download file: Confirmation Sheet

Electronic Clearing of Checks to Start in January 2017

The Monetary Board (MB) has approved the adoption of the electronic clearing of checks which shall be implemented beginning 20 January 2017.

As BSP-designated exclusive provider of electronic check clearing services, the Philippine Clearing House Corporation (PCHC) shall implement the clearing of checks via electronic presentment through its Check Image Clearing System (CICS).

Using the PCHC’s CICS, only the digital images of checks and their electronic payment information are needed to be transmitted to the paying bank. The previous clearing system requires the physical delivery of checks.

The new check clearing process is expected to speed up the crediting of funds to depositors’ account from three to five banking days to only one banking day.

Aside from promoting financial consumer welfare, this reform initiative enhances the efficiency of the domestic payment system and promotes the faster movement of goods and services in the country.

The BSP recognizes the importance of check clearing to the domestic payment system. Thus, under a memorandum of agreement between BSP and PCHC, the central bank will take a more active role in supervising the country’s check clearing system by reviewing PCHC regulations as well as examining PCHC arrangements, processes and systems for check clearing.

To ensure the smooth implementation of this new process, the BSP enjoins banks to actively participate in the preparations for electronic check clearing.

The BSP is pursuing reforms to enhance the efficiency of the payment system as this is critical to the promotion of the country’s Financial Stability.

Related BSP Issuances:

CL 2016-075: Anti-Money Laundering Council (AMLC) Resolution No. 69 dated 17 August 2016

BSP Supervisory Process & Examination Approach on Bank’s Compliance – Oct 17 -Butuan City

One-Day Orientation/Briefing on BSP Supervisory Process and Examination
Approach on Monitoring Bank’s Compliance with the Single Borrower’s Limit

The Bangko Sentral ng Pilipinas, through the Central Point of Contact
Department III (CPCD III) and Examination Department III (ED III) and in
partnership with the Rural Bankers Association of the Philippines (RBAP)
invite you to attend the One-Day Orientation/Briefing of BSP Supervisory
Process and Examination Approach on Monitoring Bank’s Compliance with the
Single Borrower’s Limit.

DATE & VENUE
October 17, 2016 (Monday)

AMARIS SUITES
Rosario’s Restaurant & Convention Center J.P. Rosales Ave., Butuan City
Tel. No. 085-341-7379

RESOURCE SPEAKERS
Bangko Sentral ng Pilipinas

CARYL T. VALDEZ – Deputy Director, ED III
ALDRIN JAVIER – Deputy Director, CPCD III

TOPICS

1. BSP Supervisory Process

2. Compliance System
* Expectations of Compliance System

3.BSP Supervisory Enforcement Policy
* Enforcement framework

4.Expectations on Compliance with the Single Borrowers Limit (SBL)

EXPECTED PARTICIPANTS:

President, Chief Compliance Officers and Heads of Credit Risk Management
(CRM) /Loans Department

Should you be interested, kindly submit the CONFIRMATION FORM
training@rbap.org on or before OCTOBER 10, 2016. Lunch and
morning/afternoon snacks will be served. Please note that this is a
live-out seminar. Accommodation is on a first come, first serve basis due
to seats limit.

Download confirmation sheet in PDF

 

Building on a strong 2nd-quarter 7% GDP

The good news is that the Philippine economy, as measured by Gross Domestic Product (GDP), grew by 7 percent in the second quarter of this year – April to June. Not so laudatory is the observation that this has not been inclusive growth, that the statistical gain has not been felt by most Filipinos who have seen no improvement in their daily lives.

The 7 percent quarterly rise – compared to only 5.9 percent in the same period last year – is largely attributed to the massive spending in the last presidential election campaign. As the election spending is over and we are back to the usual pace of economic activity, we can expect the rise in GDP in the rest of this year to return to normal.

But for now, we can take pride in knowing that in this second quarter of the year, the Philippines appeared to have the fastest growth among the countries of Asia, together with India which also had 7 percent. China had 6.7 percent; Vietnam, 5.6 percent; Indonesia, 5.2 percent; Malaysia, 4 percent; and Thailand, 3.5 percent. By way of further comparison, the world’s leading economies had even more modest second-quarter GDP growths – the United Kingdom, 2.2 percent; Singapore, 2.1 percent; the United States, 1.2 percent; and Japan, 0.2 percent.

The Philippines’ 7 percent GDP covered the last three months of the Aquino administration. “The previous administration gave us a strong and stable economy that we can build on further by maintaining the sound macro-economic, fiscal, and monetary policies already in place,” new Socio-Economic Planning Secretary Ernesto M. Pernia said.

The challenge now is for the new Duterte administration to build on this second-quarter growth and to make the growth inclusive. Pernia said the new administration has already pinpointed one area that must be developed – the farming and fishing sector, which has about 10 million workers and their families.

“Knowing that the majority of poor Filipinos rely on this sector for their livelihood, the administration will prioritize agricultural development,” Pernia said. Agriculture had been sorely ignored by the last administration, suffering five consecutive quarters of decline. In the last quarter of April-to-June, while the overall GDP was up 7 percent, agriculture declined 2.1 percent. A great deal of work is thus awaited from the new Secretary of Agriculture Emmanuel Pinol.

There will be other sectors of the economy that will be receiving considerable attention from the administration’s new economic managers. It may now be concentrating on fighting crime and drugs, in keeping with the principal campaign promise of President Duterte, but with along with peace and order, security and stability, the people will be looking forward to real economic growth that reaches down to touch them in their daily lives. – Manila Bulletin, August 24, 2016

Read more at http://www.mb.com.ph/building-on-a-strong-2nd-quarter-7-gdp/#xUW6jAh8LF4T0I7e.99

Corporate Governance Seminar – Sept 30 & Oct 01 in CDO

FOR : ALL PARTICIPATING RURAL BANKS

FROM : MOBCI- Federation of Rural Banks and
Association of Compliance Officers

SUBJECT : Corporate Governance Seminar

Dear Fellow Rural Bankers:

The Rural Bankers Association of the Philippines (RBAP), through the Rural Bankers’ Research and Development Foundation, Inc. (RBRDFI) in partnership with the Misamis Oriental- Bukidnon- Camiguin & Iligan- Federation of
Rural Banks and MOBCI – Association of Compliance Officers, are pleased to announce that it will conduct the seminar-workshop described below as part of its continuing strategy to strengthen the rural banking industry:

Course Title: Corporate Governance Seminar
Venue: Deluxe Hotel, Cagayan de Oro City
Schedule: 30 September – 01 October, 2016 (Friday-Saturday)
Duration: 2 days (8:30AM-5:00PM)

In this connection, we would like to enjoin rural banks, to send their Directors, President, Managers, Compliance Officers, Internal Auditors and Middle Level Officers to attend the seminar.

Registration fee per participant:

a) Five Thousand Five Hundred Pesos only (P5,500.00) on or before September 09, 2016
b) Six Thousand Pesos Only (P6, 000.00) after September 09, 2016.
c) Registration will cover meals (2 snacks and lunch) per day
b) Board and Lodging, and Travel expenses to and from the venue shall be borne by the participants.

For your reservations, kindly submit to us the following not later than September 09, 2016:
1. Registration form of the participant(s) duly endorsed by the bank’s authority;
2. Payments can be remitted to the MOBCI-FRB c/o COOPERATIVE BANK OF MISAMIS ORIENTAL bank account Land Bank of The Philippines (LBP) Savings Account Number- 2412-0000-67. Proof of payment (i.e., deposit slip) should
be sent immediately to MOBCI-FRB via e-mail (marygrace.banihit@gmail.com) for verification. For check payments, check should be payable to MOBCI-Federation of Rural Banks;

Only those rural banks that have complete requirements will be given reservation. Please be advised that we will be accepting up to fifty (50) participants only. We reserve the right to limit the number of participants to a manageable level. Participants will be accepted on a first-come-first-served basis.

For your reservation, please call: 0915-712-1915/ 088-856-1550 and look for Ms. Grace Rañoa, the MOBCI-FRB recording secretary.

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.

Thank you very much!

Mr. Wilner A. Palacios
President, MOBCI-FRB

Download Confirmation Sheet in PDF