Pricing Transparency Workshops -regulations calculations on EIRR

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

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

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

	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
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,

Rural Bankers Research and
Development Foundation

Download the CIR with Full Details in PDF