Archives for 2005

New Year’s Message from Pres. Paz Radaza 07 January 2008

Dear Fellow Rural Bankers,

The ushering of a new year brings anticipation and hope to everyone as it also marks the wisdom and experiences gained from the past year. It is a fitting culmination to the numerous activities that have unraveled and a rebirth to the optimism and challenges that lie ahead. It is this spirit that strengthens our determination to reach greater heights and embrace loftier ideals.

The year 2007 has been a trying one for our Association as it grappled with a leadership issue that has impaired its operation since June 2006. While hobbled by legal constraints, the 2006-07 RBAP Board led by Immediate Past President Francis S. Ganzon remained steadfast in their resolve to deliver the services needed by our member-banks. It is with this forthright tenacity shared by the majority of the member-banks of our Association that enabled them to transfer the leadership of our Association to the current 2007-08 RBAP Board which I have the privilege to serve as its President.

Since we took office last September 2007, we have declared our unequivocal intent to continue to provide meaningful and substantial services to our member-banks to nurture their growth as a stakeholder in the rural banking sector in particular, and the Philippine financial system in general. We support the broadening of their operation to participate in the opportunities occasioned by the prevailing liberal banking environment as well as the benefits brought about by globalization. We refuse to be distracted by the political noise that emanates from the festering leadership row that continues to undermine our credibility and productivity as a sector.

We shall overcome this adversity by remaining focused on our goal which is to advance and safeguard the welfare of our member-banks and the rural banking sector as a whole. We have the support of the government through their regulating agencies principally the BSP, PDIC and the Department of Finance, our partner financial and corporate institutions from the public and private sectors. Most of all, we have your support as a believer in the aspiration of all rural bankers for a brighter and a promising future, an enduring bond that we all share and cherish.

On behalf of the Officers and Directors of the 2007-08 RBAP Board, we convey our felicitation and greeting of a Happy and Meaningful New Year to all of you.

Very truly yours,


Pres. Radaza Message to the MABS Participating Banks


As we have witnessed in the past 10 years, the Micro-enterprise Access to Banking Services (MABS) Program hosted by the Rural Bankers Association of the Philippines (RBAP) has been a solid achievement that has propelled the delivery of our microfinance product to our rural constituencies. Its success in the rural banking system has drawn the interest of many sectors both in the Philippines and abroad. It has been a platform for innovative technology-based banking products that is both cost-efficient and user-friendly as it also serves as a latch for a network of partnerships it has built that has largely benefited our sector.

While its term ended on September 30, 2007, an exit process that may extend its operation until end-February 2008 is in place to ensure a proper and seamless closure to this laudable program. In a recent Management Meeting held in Davao City attended by officials of the United States Agency for International Development (USAID), Chemonics, Mindanao Economic Development Council (MEDCO) with Secretary Jesus Dureza as Presiding Officer, MABS received a highly favorable assessment with intentions made known for a possible implementation of a sequel program to sustain the benefit and goodwill that MABS has generated. This positive outcome has been made even more pronounced with the knowledge of the legal constraints spawned by a leadership issue that has beset RBAP since 2006 that unduly hobbled the presidency of Atty. Francis Ganzon and continue to stalk my current presidency. This handicap notwithstanding, we have remained forthright and transparent in handling the implementation of MABS.

We look forward with eager enthusiasm to other programs that, like MABS, our sector may be fortunate to host and gain from for the benefit of our member-banks. It is in this context that we are eliciting the support and cooperation of all of us to rise above the unfortunate distraction wrought by the noise of a few of our membership. We reiterate our call for the early resolution of this leadership issue as we, the Board voted by the majority of our members, are willing to submit ourselves anew to an election that will put an end to this sordid leadership row. We have made known this intention to officials of the BSP who viewed it with favor. The courts too remain an option to resolve this impasse and we are similarly amenable to use this venue.

We should be gaining from the tremendous prospects that the rural banking sector is poised to gain from the prevailing liberal regulatory environment and the opportunities brought by global trends like profiting from the OFW remittances. Our focus should be building our business and not demolishing what we built for over fifty years of banking experience.

Safeguarding your interests as member-banks shall always be our guidance and goal.

Very truly yours,

Paz C. Radaza

Season’s Greetings from Pres. Paz Radaza

December 17, 2007


With the festive decorations that surround us exuding joy and gaiety, Christmas has truly arrived. And I would like to be among those who will convey to you the eternal meaning of this blessed season of love, peace, and joy. The travails and challenges that has assailed us, both as individual bankers and as member-banks of our Association, should not deter us from our goals but instead it should be our beacon that will illuminate our way to greater achievement.

The Nativity of our Lord Jesus Christ is both a celebration of hope and salvation. His Birth signifies the nurturing of man through trials and tribulations to emerge victorious by His Grace. His Coming into the world embodies His Love and Salvation for mankind. And by His Divine Light, He has strengthened man to rise above his frailties and seek the goodness of his fellowmen through His Guidance and Inspiration.

As we end another challenging year in the rural banking sector, we manifest our thanksgiving to the Lord who has kept us together in His Care despite the tremendous difficulties and burdens we have encountered. By His Mercy, we continue our journey towards banking excellence and prominence that we may share these benefits with the greater number of our people. And by His Grace, we shall always seek the providence for the welfare of our sector and our member-banks despite the obstacles that aim to impair these intentions for our collective good.

On behalf of the 2007-08 RBAP Board of Directors and Officers, we convey our heartfelt greeting of A Blessed Christmas and a Meaningful New Year to you, your family, and your loved ones.

Very truly yours,


General Membership Repudiates the August 21, 2007 Meeting and Election

Unequivocal manifestation of unity, the General Membership during the September 13-14, 2007 Special General Membership Meeting (SGMM) repudiated the August 21, 2007 meeting and election.

Hereby embodied in a resolution, to wit:

:: Download Resolution (959.97 KB)

RBAP Commentary on Branching Policy and Guidelines

December 14, 2005

Deputy Governor
Bangko Sentral ng Pilipinas
A. Mabini St., Malate 1004
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Auction Sale of Landco Corporate Centre Units: September 28, 2005

12 September 2005

Dear Fellow Rural Bankers:

The Bangko Sentral ng Pilipinas is inviting participants for the acution sale of various units at Landco Corporate Centre, Bajada, Davao City. The auction sale will be done at the Bangko Sentral ng Pilipinas (BSP) in Manila on 28 September 2005 at 10:00 AM.
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DATE : September 14, 2005

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House Bill No. 3819 : An Act Establishing a Credit Information System and for Other Purposes


To: All Federation Presidents

From: Gen. William K. Hotchkiss AFP (Ret)

Subject: House Bill No. 3819

Date: September 6, 2005

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2005 RURAL BANKING WEEK (August 22-28, 2005)

3The Rural Bankers Association of the Philippines now celebrates the Rural Banking Week (August 22-26, 2005) with the theme, Rural Banks: Prime Movers of Progress through Microfinance.

Microfinance is not a new thing for the RBs. This is an ongoing business activity many years back. The micro entrepreneurs have now evolved and became the lifeblood of economic development in most areas of the country. This metamorphosis is accentuated by the rural banks’ fundamental role as the financial backbone to this emerging and evolving sector. The RBs and the micro enterprise sector were once upon a time left unnoticed. But together, with an unquestionable synergy, we were able to unleash our potentials and counter the prevalent idea that being small is analogous to being weak. Smallness is not the resemblance of weakness. In the case of the rural banks, where most of them are small, their size reflects the profile of the market they serve. Size doesn’t matter. What matters really is our substantial impact to the communities that we serve. [Read more…]



In response to the numerous queries we have received from members regarding compliance with the Revenue Memorandum Order No. 15-2005 (requiring all rural banks to submit a list of borrowers, co-makers, endorsers and/or guarantors who were extended loans the third day after the close of every month0 which we have received in recent days fromt he BIR, please be informed that we brought the matter up for discussion in our meeting with the bank Supervision Policy Committee (BSPC) last July 27, chaired by Deputy Governor Nestor J. Espenilla, Jr., together with our concerns as to the practicability and difficulties involved in fulfilling the requirements as stated in BSP Circular 472.
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BIR Ruling on Payment of Capital Gains Tax during the Redemption Period

Dear Fellow Rural Bankers;

For your information and reference, attached is a copy of BIR Ruling No. 010-2005 to clarify the issue on the payment of capital gains tax and documentary stamp tax on foreclosures involving properties titled under homestead or free patent.
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SMEC and KfW Applicable Interest Rate (PBSP)


T o : All Member Banks

F r o m : Gen. William K. Hotchkiss III (Ret.)

D a t e : 25 August 2005

Subject : Letter from PBSP Re SMEC & KfW Interest Rate

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Acceptance Speech – Incoming President
Speech of Gov. Amando Tetangco, Jr.

Speeches and Presentations During the 52nd Annual Convention

RBAP 52nd Annual National Convention 19-20 May 2005

Dusit Hotel Nikko, Makati City

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Welcome Remarks

(Delivered on the Occasion of a Dinner Reception in honor of BSP Deputy Governor Alberto V. Reyes and BSP-SED IV Director Wilfredo B. Domo-ong, 20 April 2005, Casino Español, T.M. Kalaw, Ermita, Manila)

BSP Deputy Governor Alberto Reyes, BSP-SED IV Director Atty. Wilfredo Domo-ong, fellow rural bankers, ladies and gentlemen, good evening! [Read more…]