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. Seminars will be held on the following dates and places: Date Venue/Place March 8 Exec. Business Center, Visayas Room, 5/F Multistory Bldg., BSP ,FB Harrison Street, Pasay City * Final confirmation of attendance is 3 days prior to actual training day. BSP requires advance copy of the names of expected participants for BSP entry March 21 Gov. Licaros Hall, RBAP Building, Intramuros, Manila March 29 Lenox Hotel, Rizal St., Dagupan City, Pangasinan March 30 Hotel Ariana, Nat’l. Highway, Barrio Paringao, Bauang, La Union April 10 Gov. Licaros Hall, RBAP Building, Intramuros, Manila April 13 Legazpi City, Albay April 18 Clark, Pampanga April 20 Amigo Terrace Hotel, Iloilo April 25 Cagayan De Oro City April 27 Gov. Licaros Hall, RBAP Building, Intramuros, Manila May 11 Gov. Licaros Hall, RBAP Building, Intramuros, Manila Please feel free to attend any of the scheduled workshops. Registration fees: a) BSP & RBAP Manila Training Workshops i) P2,200.00 per person –regular rate; ii) P2,000.00 per person – registration two weeks before the schedule. b) La Union & Pangasinan Training Workshops i) P2,400.00 per person –regular rate; ii) P2,200.00 per person – registration two weeks before the schedule. c) Additional 20% from the regular rate shall be applied for Non-RBAP members. Due to limited seats, we encourage attendance of a bank senior officer, accompanied by the Compliance Officer. The registration fees cover the cost of venue, trainer’s fees, conference materials, lunch, and morning/afternoon snacks. However, transportation, lodging, and breakfast/dinner shall be borne by the participants. Banks are therefore advised to arrange for their own accommodation and transport to and from the training site. Payment should be deposited to the Rural Bankers Research and Development Foundation, Inc. (RBRDFI) Savings Account (SA# 0012-1046-26) with Land Bank of the Philippines – Intramuros Branch. For cheque payment, kindly indicate RBRDFI as payee. Please use the attached confirmation sheet to register. Once the confirmation slip is completed, please fax it to RBRDFI together with a copy of the deposit slip as proof of payment. For additional inquiries please contact: Mr. Ace M. Calang Ms. Grace Dimapilis. Ms. Jesica Cepeda Contact Numbers: (02) 527-2969, 527-2980; 09178374604; 09178374603; 09178374599 Email training@rbap.org, grace@rbap.org, cepedajesica_rbap@yahoo.com Finally, 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 possible) 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 I encourage the rural banks to send participants to attend this workshop. This will help our banks learn the basis, process, and decisions that need to be made before the new rules take effect. Let us all be guided accordingly. Very truly yours, MA. CORAZON L. MILLER Chairperson Rural Bankers Research and Development Foundation Download the CIR with Full Details in PDF
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