EastWest clears regulatory hurdle for merger
East West Banking Corp. has secured the first of the regulatory
approvals required for its proposed merger with Mindanao-based rural
bank Green Bank (A Rural Bank), Inc.
"The Philippine Deposit Insurance Corp. (PDIC) has granted its consent
to the proposed merger of East West Banking Corp. and Green Bank (A
Rural Bank), Inc., with EastWest as the surviving entity," a disclosure
to the stock exchange read on Friday.
The approval of the Bangko Sentral ng Pilipinas and Securities and
Exchange Commission is still needed to fully implement the merger.
EastWest Bank took over Green Bank, based in Butuan City, in August 2011.
The acquisition was done to help EastWest Bank engage in lending to
micro and small borrowers, the Gotianun-led bank earlier said. Green
Bank has 46 branches across the countryside.
As of October, EastWest Bank had a total of 347 branches, including that
of its rural bank subsidiary. It aims to expand its network to 400
branches by the first quarter of 2014.
It has been aggressive in its expansion plans, acquiring Ecology Savings
Bank, Inc. in 2003; AIG Philam Savings Bank, Philam Auto Finance and
Leasing, Inc. and PLF Holdings in 2009; and Finman Rural Bank, Inc. in 2012.
EastWest Bank saw its net income jump 25.37% to P1.7 billion as of
September from last year. Its capital adequacy ratio -- a measure of
financial strength -- stood at 17.1%, well above the central bank's 10%
minimum requirement.
EastWest Bank's shares remained flat at P25 apiece on Friday. -- Diana
Jean B. Evite
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Saturday, November 30, 2013
Gov’t to set up earthquake insurer
By Diana Jean B. Evite
Gov't to set up earthquake insurer
A company could be set up solely to provide the earthquake insurance the
government seeks to make mandatory for households and small businesses,
the Asian Development Bank (ADB) has proposed.
The ADB presented to the Insurance Commission (IC) on Wednesday a
business plan to set up Earthquake Protection Insurance Corp. (EPIC) --
a "model company" that will lead the implementation of the proposed
compulsory earthquake insurance in the Philippines.
"There is already a virtual agreement from the industry to put up a
dedicated insurance company that will provide compulsory earthquake
insurance cover to small and medium enterprises (SME) and middle-class
residential units," Insurance Commissioner Emmanuel F. Dooc told reporters.
"But, this has to be formally taken up with us (IC), the local insurance
industry and the Department of Finance," he went on.
Discussions on the ADB proposal will start in January.
The proposed initial capital for EPIC -- which will run under a
public-private partnership -- is $400 million dollars, while its
proposed production target is at least 300,000 earthquake policies
within five years.
The model company is expected to attract domestic and foreign insurers
to invest in the earthquake insurance program in the country.
"The idea why we need to put up a model company in the form of EPIC is
we want to secure support of the insurance companies overseas," Mr. Dooc
said.
"If they see a company dedicated to earthquake risks adequately
capitalized and with investors which are reputable and also backed up by
adequate resources, then getting reinsurance support will not be a
problem," he explained.
Mr. Dooc noted that earthquake insurance is not popular among SMEs and
households because it is too expensive. Making it mandatory will bring
down its cost and expand its reach, thereby making it a more
commercially viable business for insurers.
"Traditional players or insurance providers will not just come in
because it will not be a viable commercial proposition to engage in that
particular business line, without the scale, without the appropriate
premium and without certain assurance that the market will support it,"
the IC chief explained.
The regulator has been pushing for a bill that will make earthquake
insurance coverage mandatory as the country lies in the Pacific Rim of
Fire -- an area in the Pacific Ocean where most of the world's
earthquakes and volcanic eruptions occur.
Mr. Dooc said some legislators have already expressed support for the
proposed bill.
"I don't think we'll have difficulty lining up support of legislators in
light of the recent calamities that hit us," he added.
On Nov. 8, super-typhoon Yolanda (international name: Haiyan) struck
central Philippines, killing almost 6,000 people and causing widespread
damage in infrastructure and agriculture.
Prior to that, a 7.2-magnitude earthquake shook the provinces of Bohol
and Cebu, leaving 200 dead and destroying billions worth of agriculture
and infrastructure, including iconic heritage sites.
---
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Gov't to set up earthquake insurer
A company could be set up solely to provide the earthquake insurance the
government seeks to make mandatory for households and small businesses,
the Asian Development Bank (ADB) has proposed.
The ADB presented to the Insurance Commission (IC) on Wednesday a
business plan to set up Earthquake Protection Insurance Corp. (EPIC) --
a "model company" that will lead the implementation of the proposed
compulsory earthquake insurance in the Philippines.
"There is already a virtual agreement from the industry to put up a
dedicated insurance company that will provide compulsory earthquake
insurance cover to small and medium enterprises (SME) and middle-class
residential units," Insurance Commissioner Emmanuel F. Dooc told reporters.
"But, this has to be formally taken up with us (IC), the local insurance
industry and the Department of Finance," he went on.
Discussions on the ADB proposal will start in January.
The proposed initial capital for EPIC -- which will run under a
public-private partnership -- is $400 million dollars, while its
proposed production target is at least 300,000 earthquake policies
within five years.
The model company is expected to attract domestic and foreign insurers
to invest in the earthquake insurance program in the country.
"The idea why we need to put up a model company in the form of EPIC is
we want to secure support of the insurance companies overseas," Mr. Dooc
said.
"If they see a company dedicated to earthquake risks adequately
capitalized and with investors which are reputable and also backed up by
adequate resources, then getting reinsurance support will not be a
problem," he explained.
Mr. Dooc noted that earthquake insurance is not popular among SMEs and
households because it is too expensive. Making it mandatory will bring
down its cost and expand its reach, thereby making it a more
commercially viable business for insurers.
"Traditional players or insurance providers will not just come in
because it will not be a viable commercial proposition to engage in that
particular business line, without the scale, without the appropriate
premium and without certain assurance that the market will support it,"
the IC chief explained.
The regulator has been pushing for a bill that will make earthquake
insurance coverage mandatory as the country lies in the Pacific Rim of
Fire -- an area in the Pacific Ocean where most of the world's
earthquakes and volcanic eruptions occur.
Mr. Dooc said some legislators have already expressed support for the
proposed bill.
"I don't think we'll have difficulty lining up support of legislators in
light of the recent calamities that hit us," he added.
On Nov. 8, super-typhoon Yolanda (international name: Haiyan) struck
central Philippines, killing almost 6,000 people and causing widespread
damage in infrastructure and agriculture.
Prior to that, a 7.2-magnitude earthquake shook the provinces of Bohol
and Cebu, leaving 200 dead and destroying billions worth of agriculture
and infrastructure, including iconic heritage sites.
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Friday, November 29, 2013
Merger of China Bank unit with rural bank approved
Merger of China Bank unit with rural bank approved
THE MERGER of China Bank Savings Inc. and Pampanga-based Unity Bank,
Inc. (A Rural Bank) has been greenlighted by the central bank, allowing
the Sy-led thrift bank to build its presence in the countryside.
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on Nov. 21
approved the merger between the two banks, with China Bank Savings as
the surviving entity, "on the condition that the merger will be
implemented within six months," China Banking Corp., the parent of China
Bank Savings, said in a disclosure yesterday.
The banks are now awaiting the nod of the Securities and Exchange
Commission -- the last regulatory approval needed to fully implement the
merger.
China Bank said the deal was done under the BSP's Strengthening Program
for Rural Banks Plus (SPRB Plus), which aims to improve the delivery of
financial services in the countryside.
Under the P5-billion program, universal, commercial and thrift banks are
encouraged to rescue ailing rural and thrift banks in exchange for a
spate of incentives.
The merger will expand China Bank Savings' network to 90 branches,
gaining 15 branches from Unity Bank and 24 new branch licenses in
restricted areas from the BSP -- one of the incentives under SPRB Plus
"With the merger, [China Bank Savings] is on track to meet its target of
73 branches by yearend and 100 by next year," the bank said in a statement.
The BSP last year approved China Bank's acquisition of 99.95% of Unity
Bank's outstanding subscribed capital stock.
China Bank Savings began operations on September 2008 following China
Bank's acquisition of Manila Bank the year prior.
In September, a memorandum of agreement was also inked for Planters
Development Bank -- the country's leading bank for small and medium
enterprises (SME) -- to become a part of the China Banking Group.
The merger between China Bank and Plantersbank is expected to bolster
the former's SME portfolio and network expansion.
China Bank saw its consolidated net income grow 25% to P3.93 billion as
of the third quarter from P3.14 billion in the same period last year.
As of September, the Sy-led bank's assets climbed 15% to P359.03 billion.
Its shares remained flat at P60 apiece yesterday. -- Diana Jean B. Evite
---
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THE MERGER of China Bank Savings Inc. and Pampanga-based Unity Bank,
Inc. (A Rural Bank) has been greenlighted by the central bank, allowing
the Sy-led thrift bank to build its presence in the countryside.
The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on Nov. 21
approved the merger between the two banks, with China Bank Savings as
the surviving entity, "on the condition that the merger will be
implemented within six months," China Banking Corp., the parent of China
Bank Savings, said in a disclosure yesterday.
The banks are now awaiting the nod of the Securities and Exchange
Commission -- the last regulatory approval needed to fully implement the
merger.
China Bank said the deal was done under the BSP's Strengthening Program
for Rural Banks Plus (SPRB Plus), which aims to improve the delivery of
financial services in the countryside.
Under the P5-billion program, universal, commercial and thrift banks are
encouraged to rescue ailing rural and thrift banks in exchange for a
spate of incentives.
The merger will expand China Bank Savings' network to 90 branches,
gaining 15 branches from Unity Bank and 24 new branch licenses in
restricted areas from the BSP -- one of the incentives under SPRB Plus
"With the merger, [China Bank Savings] is on track to meet its target of
73 branches by yearend and 100 by next year," the bank said in a statement.
The BSP last year approved China Bank's acquisition of 99.95% of Unity
Bank's outstanding subscribed capital stock.
China Bank Savings began operations on September 2008 following China
Bank's acquisition of Manila Bank the year prior.
In September, a memorandum of agreement was also inked for Planters
Development Bank -- the country's leading bank for small and medium
enterprises (SME) -- to become a part of the China Banking Group.
The merger between China Bank and Plantersbank is expected to bolster
the former's SME portfolio and network expansion.
China Bank saw its consolidated net income grow 25% to P3.93 billion as
of the third quarter from P3.14 billion in the same period last year.
As of September, the Sy-led bank's assets climbed 15% to P359.03 billion.
Its shares remained flat at P60 apiece yesterday. -- Diana Jean B. Evite
---
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BanKO gets P200-M fresh infusion from Ayala Group
BanKO gets P200-M fresh infusion from Ayala Group
By Ted P. Torres (The Philippine Star)
Updated November 24, 2013 - 12:00am
MANILA, Philippines - BPI Globe BanKO (BanKO) has received a fresh
infusion of funds from stakeholders amounting to a total P200 million.
BanKO is a joint venture thrift bank and the only mobile
technology-based, microfinance-focused bank in the Philippines. The
major stakeholders are the Bank of the Philippine Islands (BPI), Globe
Telecom Inc. (Globe), and Ayala Corp.
BanKO chief operating officer John Rubio said its stakeholders continue
to embrace the importance and significance of financial inclusion and
the bank's unique contribution to bringing credit to the unbanked and
under banked segment of the population.
"We presented a three-year program that will result in a net income of
over P100 million," Rubio added.
Total deposit base stood at P2.05 billion, while the wholesale loan
portfolio stood at P922 million. Retail loan portfolio stood at P43 million.
Lending interest rates was a modest 2.5- to three percent per month,
well below the notorious five-six scheme which results in a high
20-percent monthly interest rate.
The thrift bank's customer base stood at 431,000 with an average deposit
of P310.
Instead of bank branches, BanKO relies on more than a hundred bank
personnel and agents, 34 major institutional partners, and over 1,953
partner outlets including cash-in, cash-out centers.
BanKO's current partners include Tambunting Pawnshop, CVM Pawnshop,
Generika drugstores, Czarina Foreign Exchange, gasoline stations,
Internet cafes, loading stations, convenience stores, and many more.
The thrift bank also partners with microfinance institutions (MFIs) such
as rural banks, non-government organizations (NGOs) and cooperatives,
offering wholesale institutional loans to fund MFIs' on-lending to its
client-base, and capability-building developmental loans in the form of
technical assistance and financial training for the MFIs and their clients.
Base of the transactions is the mobile or cellular phone (through the
Globe's GCash), and automated teller machine (ATM) cards.
Bank customers open accounts that are bundle savings, insurance and
later on, credit or loans.
Account opening takes place at agent locations where the agents are
certified to perform "know-your-customer" (KYC) registration, allowing
customers to leave with a fully- activated electronic wallet and an ATM
card after a 10-15 minute registration process.
Registration is then processed and approved resulting in account
activation. From then on, transactions can be done through the mobile
phone, while actual cash transaction are done through the partner
outlets, which takes the place of the traditional branches.
Recently, BanKO and the United States Agency for International
Development (USAID), through its Scaling Innovations in Mobile Money
(SIMM) project, launched the country's first-ever mobile banking
platform with the local government of Pulilan, Bulacan.
The project started a mobile money payroll platform that allows the
local government of Pulilan, Bulacan to pay its 300 employees through
mobile phones. It likewise allows the 10,000 Pulilan households to pay
its water bills using their mobile phones.
It will result in savings for the local government unit (LGU) and the
thousands of households using the local water district, as it eliminates
handling cost of transporting cash from Baliwag to Pulilan, aside from
eliminating risk of theft or robbery while payroll is in-transit in case
of field-based employees.
It results in no average daily balances, no need for vault, enclosure or
security personnel to secure cash, simplified requirements for opening
accounts, and increased access points through ATMs and neighborhood
partner outlets.
For the residents of Pulilan, they do have to physically go to the
payment centers.
A similar operation has since been implemented in Batangas, and by the
end of the year or early next year, it will be implemented in Quezon City.
---
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By Ted P. Torres (The Philippine Star)
Updated November 24, 2013 - 12:00am
MANILA, Philippines - BPI Globe BanKO (BanKO) has received a fresh
infusion of funds from stakeholders amounting to a total P200 million.
BanKO is a joint venture thrift bank and the only mobile
technology-based, microfinance-focused bank in the Philippines. The
major stakeholders are the Bank of the Philippine Islands (BPI), Globe
Telecom Inc. (Globe), and Ayala Corp.
BanKO chief operating officer John Rubio said its stakeholders continue
to embrace the importance and significance of financial inclusion and
the bank's unique contribution to bringing credit to the unbanked and
under banked segment of the population.
"We presented a three-year program that will result in a net income of
over P100 million," Rubio added.
Total deposit base stood at P2.05 billion, while the wholesale loan
portfolio stood at P922 million. Retail loan portfolio stood at P43 million.
Lending interest rates was a modest 2.5- to three percent per month,
well below the notorious five-six scheme which results in a high
20-percent monthly interest rate.
The thrift bank's customer base stood at 431,000 with an average deposit
of P310.
Instead of bank branches, BanKO relies on more than a hundred bank
personnel and agents, 34 major institutional partners, and over 1,953
partner outlets including cash-in, cash-out centers.
BanKO's current partners include Tambunting Pawnshop, CVM Pawnshop,
Generika drugstores, Czarina Foreign Exchange, gasoline stations,
Internet cafes, loading stations, convenience stores, and many more.
The thrift bank also partners with microfinance institutions (MFIs) such
as rural banks, non-government organizations (NGOs) and cooperatives,
offering wholesale institutional loans to fund MFIs' on-lending to its
client-base, and capability-building developmental loans in the form of
technical assistance and financial training for the MFIs and their clients.
Base of the transactions is the mobile or cellular phone (through the
Globe's GCash), and automated teller machine (ATM) cards.
Bank customers open accounts that are bundle savings, insurance and
later on, credit or loans.
Account opening takes place at agent locations where the agents are
certified to perform "know-your-customer" (KYC) registration, allowing
customers to leave with a fully- activated electronic wallet and an ATM
card after a 10-15 minute registration process.
Registration is then processed and approved resulting in account
activation. From then on, transactions can be done through the mobile
phone, while actual cash transaction are done through the partner
outlets, which takes the place of the traditional branches.
Recently, BanKO and the United States Agency for International
Development (USAID), through its Scaling Innovations in Mobile Money
(SIMM) project, launched the country's first-ever mobile banking
platform with the local government of Pulilan, Bulacan.
The project started a mobile money payroll platform that allows the
local government of Pulilan, Bulacan to pay its 300 employees through
mobile phones. It likewise allows the 10,000 Pulilan households to pay
its water bills using their mobile phones.
It will result in savings for the local government unit (LGU) and the
thousands of households using the local water district, as it eliminates
handling cost of transporting cash from Baliwag to Pulilan, aside from
eliminating risk of theft or robbery while payroll is in-transit in case
of field-based employees.
It results in no average daily balances, no need for vault, enclosure or
security personnel to secure cash, simplified requirements for opening
accounts, and increased access points through ATMs and neighborhood
partner outlets.
For the residents of Pulilan, they do have to physically go to the
payment centers.
A similar operation has since been implemented in Batangas, and by the
end of the year or early next year, it will be implemented in Quezon City.
---
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Thursday, November 28, 2013
2 out of 3 Filipino families able to save 25% of income–NSCB report
2 out of 3 Filipino families able to save 25% of income–NSCB report
By Ana G. Roa
Philippine Daily Inquirer
8:37 pm | Tuesday, July 10th, 2012
MANILA, Philippines — Two in three Filipino families were "savers" between 2003 and 2009, keeping an average of P23 to P25 out of every P100 they earned, a recent National Statistical Coordination Board (NSCB) report showed.
The report also showed that female-headed households saved more than male-headed ones.
The percentage of "savers" or families with income higher than expenditure were 65.5 percent in 2003, 65.1 percent in 2006 and 65.9 percent in 2009.
The "non-savers" or families with savings less than or equal to zero accounted for 34.5 percent in 2003, 34.9 percent in 2006 and 34.1 percent in 2009.
The latest Family Income and Expenditures Survey (FIES), which was used as basis for the NSCB report was in 2009. The National Statistics Office will conduct the next FIES survey in July 2012 and January of 2013, with 2012 as reference year.
The report, written by former NSCB secretary general Romulo A. Virola, NSCB director Jessamyn O. Encarnacion and NSCB statistical coordination officer Mechelle M. Viernes, used data from the Family Income and Expenditures Survey, which is conducted by the National Statistics Office triennially.
The "savers" reported an average annual per capita savings of P10,693 in 2003, P11,982 in 2006 and P14,298 in 2009.
This would mean that the "savers" have the capacity to "save" at least one person out of food poverty, the NSCB said, citing the official annual per capita food threshold in 2003 at P7577, in 2006 at P9,257 and in 2009 at P11,686.
On the other hand, the "non-savers" reported a deficit of 14 to 15 percent of their income between 2003 and 2009 or for every P100 that they earn, they spend P114 to P115 pesos.
In terms of spending patterns, the biggest difference between "savers" and "non-savers" was on food expenditures, with the latter spending about 4 to 5 percent more.
Previous findings from poverty analysis showed that the poor spent proportionately more on food than the non-poor, the NSCB noted.
Education was one of the items being sacrificed by non-savers, the report found.
"This could mean that many of our kababayans could no longer afford to send our children to school, or that higher education is no longer the priority that it used to be among Pinoy families," the report said.
Another worrisome finding was that "non-savers" spend relatively more on alcoholic beverages and tobacco than the "savers," NSCB noted.
In current prices, the total income of all families in the country was P2.4 trillion in 2003, P3 trillion in 2006 and P3.8 trillion in 2009 while total expenditures amounted to P2 trillion in 2003, P2.6 trillion in 2006 and P3.2 trillion in 2009.
This resulted in the share of total savings to total income of 16.4 percent in 2003 to 14.8 percent in 2006 and 14.9 percent in 2009.
Removing the impact of price increases overtime, real per capita annual savings across all families nationwide went down from P5,261 in 2003 to P4,667 in 2006 and P4,957 in 2009.
By geographic location, the Cordillera Administrative Region (CAR) had the highest savings ratio in 2009 at 0.23 followed by Cagayan Valley at 0.21 and Central Visayas at 0.20.
The regions with the lowest savings ratio in 2009 were Western Visayas (0.12), Bicol Region (0.14) and National Capital Region (0.15).
Among the "non-savers" in the regions, the highest deficit ratios in 2009 were observed in CAR (0.21) Socsksargen (0.18) and Cagayan Valley (0.17).
"CAR and Region II appear to exhibit extreme behavior…they are home to families who are the highest savers as well as the most lavish spenders," the NSCB said.
Among savers between 2003 and 2009, the savings ratio of matriarchal or female-headed households was consistently higher than the patriarchal or male-headed ones.
Matriarchal households that were "savers" spent relatively less on food, non-durable furnishing, clothing and footwear compared to the patriarchal households. Patriarchal households that were "savers" spent relatively less on recreation, special family occasions, gifts and contributions, NSCB said.
Among non-savers, the income deficit of matriarchal households was consistently less than the patriarchal households.
Matriarchal households that were "non-savers" spent relatively more on personal care and effects compared to their male-headed counterparts, while patriarchal households that were "non-savers" spent relatively more on alcoholic beverages, tobacco, and durable furnishing.
The savings ratios of "savers" among households whose heads were single were practically the same as those of "savers" with married household heads.
"Clearly, the challenge for those of us not on the Forbes List is how to spend our money more wisely…less on non-basic expenditures so that we will have more for essentials, like education and health," the NSCB said.
Read more: http://business.inquirer.net/70266/2-out-of-3-filipino-families-able-to-save-25-of-income-nscb-report#ixzz2lvKk9eiu
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Wednesday, November 27, 2013
Two thrift banks merge
Two thrift banks merge
THE MERGER of Producers Savings Bank Corp. and Iloilo City Development
Bank (ICDB) has been granted regulatory approval, with the former being
the surviving entity.
"The Securities and Exchange Commission (SEC) approved on Oct. 31 the
agreement and articles and plan of merger of Producers Savings Bank
Corp., the surviving corporation, and Iloilo City Development Bank, the
absorbed corporation," the central bank said in Memorandum Circular No.
063 issued on Nov. 18.
All assets and liabilities of Iloilo Development Bank will be
"transferred to and absorbed by Producers Savings Bank Corp.," it added.
Producers Savings Bank started its operations as a merged thrift bank on
Nov. 12. ICDB is a 46-year old thrift bank based in Iloilo. It had three
branches.
In 2009, the Monetary Board approved Producers Savings Bank's request to
purchase up to 49% of the issued and outstanding common shares of ICDB.
Later on, it allowed the application of Producers Savings Bank to
convert its banking license from a rural bank to a thrift bank.
Producers Savings Bank was formerly known as Producers Rural Bank of San
Jose City when it was incorporated in October 1995.
As a rural bank, it had the largest branch network in Luzon and
second-largest nationwide.
In 2003, it merged with the Rural Bank of Rosales, Inc., which had 11
branches and was headquartered in Pangasinan.
In 2010, Producers Savings Bank also acquired New Rural Bank of
Victorias, Inc. (Bank Victorias). -- ARRG
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THE MERGER of Producers Savings Bank Corp. and Iloilo City Development
Bank (ICDB) has been granted regulatory approval, with the former being
the surviving entity.
"The Securities and Exchange Commission (SEC) approved on Oct. 31 the
agreement and articles and plan of merger of Producers Savings Bank
Corp., the surviving corporation, and Iloilo City Development Bank, the
absorbed corporation," the central bank said in Memorandum Circular No.
063 issued on Nov. 18.
All assets and liabilities of Iloilo Development Bank will be
"transferred to and absorbed by Producers Savings Bank Corp.," it added.
Producers Savings Bank started its operations as a merged thrift bank on
Nov. 12. ICDB is a 46-year old thrift bank based in Iloilo. It had three
branches.
In 2009, the Monetary Board approved Producers Savings Bank's request to
purchase up to 49% of the issued and outstanding common shares of ICDB.
Later on, it allowed the application of Producers Savings Bank to
convert its banking license from a rural bank to a thrift bank.
Producers Savings Bank was formerly known as Producers Rural Bank of San
Jose City when it was incorporated in October 1995.
As a rural bank, it had the largest branch network in Luzon and
second-largest nationwide.
In 2003, it merged with the Rural Bank of Rosales, Inc., which had 11
branches and was headquartered in Pangasinan.
In 2010, Producers Savings Bank also acquired New Rural Bank of
Victorias, Inc. (Bank Victorias). -- ARRG
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Friday, November 8, 2013
One Network Bank expands in Western Visayas
One Network Bank expands in Western Visayas
DAVAO CITY -- One Network Bank, a Consunji-led rural bank based here, is
preparing to build its presence in Western Visayas by establishing three
new branches and renovating six more in Panay Island.
These are outside of the six branches it acquired through a merger with
an Iloilo City-based rural bank early this year.
The new branches, the bank said in a statement, will be located in
Pototan and Barotac Nuevo, both in Iloilo, and in San Jose de Buenavista
in Antique.
One Network Bank is also renovating the six branches it acquired through
its merger with Rural Bank of San Enrique, based in Iloilo.
In an earlier interview, One Network Bank President Alex V. Buenaventura
said the three new branches comprise the first batch out of the 10 the
bank plans to set up over the next two years. Two more will be located
in Panay while the rest of the new branches will be in Mindanao.
He said about P7 million would be invested with every new branch and
that the bank generally owns the land where the buildings are located.
The entry of One Network Bank into the Panay market, Mr. Buenaventura
said, will allow customers to experience the services only commercial
banks provide, like check-clearing and remittance operations. The bank's
142 automated teller machines are linked under Bancnet, which has about
40 bank members.
This developed as One Network Bank -- the country's largest rural bank
-- announced it recorded a net income after tax of P575 million as of
the third quarter, breaching its full-year profits of P478 million in 2012.
The bank attributed its performance to aggressive expansion, "making its
affordable deposit and loan products available to more unserved and
underserved sectors," it said on Monday.
One Network Bank has about 680,000 depositors in its 97 branches
nationwide. Its deposits ballooned to P17 billion as of September, 22%
higher than the year-ago level.
DAVAO CITY -- One Network Bank, a Consunji-led rural bank based here, is
preparing to build its presence in Western Visayas by establishing three
new branches and renovating six more in Panay Island.
These are outside of the six branches it acquired through a merger with
an Iloilo City-based rural bank early this year.
The new branches, the bank said in a statement, will be located in
Pototan and Barotac Nuevo, both in Iloilo, and in San Jose de Buenavista
in Antique.
One Network Bank is also renovating the six branches it acquired through
its merger with Rural Bank of San Enrique, based in Iloilo.
In an earlier interview, One Network Bank President Alex V. Buenaventura
said the three new branches comprise the first batch out of the 10 the
bank plans to set up over the next two years. Two more will be located
in Panay while the rest of the new branches will be in Mindanao.
He said about P7 million would be invested with every new branch and
that the bank generally owns the land where the buildings are located.
The entry of One Network Bank into the Panay market, Mr. Buenaventura
said, will allow customers to experience the services only commercial
banks provide, like check-clearing and remittance operations. The bank's
142 automated teller machines are linked under Bancnet, which has about
40 bank members.
This developed as One Network Bank -- the country's largest rural bank
-- announced it recorded a net income after tax of P575 million as of
the third quarter, breaching its full-year profits of P478 million in 2012.
The bank attributed its performance to aggressive expansion, "making its
affordable deposit and loan products available to more unserved and
underserved sectors," it said on Monday.
One Network Bank has about 680,000 depositors in its 97 branches
nationwide. Its deposits ballooned to P17 billion as of September, 22%
higher than the year-ago level.
Thursday, November 7, 2013
Rizal Microbank pioneers ‘container bank’
Rizal Microbank pioneers 'container bank'
26 Oct 2013 Written by Genivi Factao
THE skill, artistry and ingenuity of Filipinos have proven that an empty
container can be converted into a house, an office, commercial stalls
and—why not—a bank.
Yes, Rizal Microbank, the microfinance unit of Rizal Commercial Banking
Corp., has introduced its first container microfinance banking office
(MBO) in Lipa City, Batangas.
Cut a door and windows into a container box, put double walling and
ceiling, and with the use of insulation, as well as proper ventilation,
the empty container that used to clutter ports has found its new purpose.
The two strong and slender 40-footer containers were converted into an
MBO to service to the microentrepreneur clients of Rizal Microbank in
Lipa City. "It's a permanent, solid and stable structure," Rizal
Microbank President Ma. Lourdes Jocelyn Pineda said.
"Rizal Microbank is making a lot of firsts. We asked the Bangko Sentral
if it allows a microbank office without a vault. And they allowed us. We
have cashless operations here, because other transactions can be done in
our head office," Pineda said.
"But, we also have an ATM [automated teller machine] for clients who
need to deposit or withdraw," she added.
She said the company invested between P2.3 million and P2.4 million for
the MBO Lipa, including furniture. If it's bare the cost will be less
than a million pesos.
"We saved one-fourth of the cost of a regular branch. It's faster to
construct and can be finished in a month, and the advantage is a lot of
savings from rental fees. With the container, all we need is a vacant
lot," she said, adding that the microbank rented the vacant space for
only P15,000 a month.
The bank is manned by three people to service customers who open
accounts and apply for loans, and do the basic "know your customers" norms.
When asked about plans of transporting the container bank to another
place, Pineda said, "It was my concern before, if we'll wake up one
morning and the bank is gone," she smiled.
"Actually, we have a contractor who said the container was vaulted on
the ground. It was welded to provide stability and it's permanent," she
explained.
"Should we decide to move, we can move it, but it will take time. The
contractor said it's not an easy task," she explained, adding that they
have to seek approval from regulators.
The thrift bank has 15 branches: 10 in Luzon, four in Mindanao and its
latest addition is the container-type Lipa branch.
There are seven more MBOs in the pipeline targeted to open in the first
quarter of next year. The four new MBOs will be in Mindanao,
particularly in Butuan City, Agusan del Norte; General Santos City,
South Cotabato; Bukidnon and Cagayan de Oro City, while three MBOs will
be put up in Luzon, particularly in Cabuyao, Santa Cruz and San Pablo,
all in Laguna.
"The MBOs will not necessary be another container type, because it's
hard to find vacant lots. The MBO will have investments of about P2
million and we're looking for at least 120 to 150-square-meter lots,"
she said.
The beautifully crafted business stalls and restaurants made of
containers already exist everywhere in the country. A posh bar and
restaurant on Roxas Boulevard used three rows of stacked 40-footer
containers. On Ortigas Avenue, Pasig City, there can be found container
vans converted into classy apartment units. Even the Metropolitan Manila
Development Authority uses containers as traffic offices.
26 Oct 2013 Written by Genivi Factao
THE skill, artistry and ingenuity of Filipinos have proven that an empty
container can be converted into a house, an office, commercial stalls
and—why not—a bank.
Yes, Rizal Microbank, the microfinance unit of Rizal Commercial Banking
Corp., has introduced its first container microfinance banking office
(MBO) in Lipa City, Batangas.
Cut a door and windows into a container box, put double walling and
ceiling, and with the use of insulation, as well as proper ventilation,
the empty container that used to clutter ports has found its new purpose.
The two strong and slender 40-footer containers were converted into an
MBO to service to the microentrepreneur clients of Rizal Microbank in
Lipa City. "It's a permanent, solid and stable structure," Rizal
Microbank President Ma. Lourdes Jocelyn Pineda said.
"Rizal Microbank is making a lot of firsts. We asked the Bangko Sentral
if it allows a microbank office without a vault. And they allowed us. We
have cashless operations here, because other transactions can be done in
our head office," Pineda said.
"But, we also have an ATM [automated teller machine] for clients who
need to deposit or withdraw," she added.
She said the company invested between P2.3 million and P2.4 million for
the MBO Lipa, including furniture. If it's bare the cost will be less
than a million pesos.
"We saved one-fourth of the cost of a regular branch. It's faster to
construct and can be finished in a month, and the advantage is a lot of
savings from rental fees. With the container, all we need is a vacant
lot," she said, adding that the microbank rented the vacant space for
only P15,000 a month.
The bank is manned by three people to service customers who open
accounts and apply for loans, and do the basic "know your customers" norms.
When asked about plans of transporting the container bank to another
place, Pineda said, "It was my concern before, if we'll wake up one
morning and the bank is gone," she smiled.
"Actually, we have a contractor who said the container was vaulted on
the ground. It was welded to provide stability and it's permanent," she
explained.
"Should we decide to move, we can move it, but it will take time. The
contractor said it's not an easy task," she explained, adding that they
have to seek approval from regulators.
The thrift bank has 15 branches: 10 in Luzon, four in Mindanao and its
latest addition is the container-type Lipa branch.
There are seven more MBOs in the pipeline targeted to open in the first
quarter of next year. The four new MBOs will be in Mindanao,
particularly in Butuan City, Agusan del Norte; General Santos City,
South Cotabato; Bukidnon and Cagayan de Oro City, while three MBOs will
be put up in Luzon, particularly in Cabuyao, Santa Cruz and San Pablo,
all in Laguna.
"The MBOs will not necessary be another container type, because it's
hard to find vacant lots. The MBO will have investments of about P2
million and we're looking for at least 120 to 150-square-meter lots,"
she said.
The beautifully crafted business stalls and restaurants made of
containers already exist everywhere in the country. A posh bar and
restaurant on Roxas Boulevard used three rows of stacked 40-footer
containers. On Ortigas Avenue, Pasig City, there can be found container
vans converted into classy apartment units. Even the Metropolitan Manila
Development Authority uses containers as traffic offices.
Sunday, November 3, 2013
Microfinance and the BSP
Microfinance and the BSP
By Ignacio R. Bunye
Sunday, October 13, 2013
IN LAST week's column, we mentioned how the Bangko Sentral ng Pilipinas
(BSP) helps in attaining a better life for all Filipinos through its
advocacy of financial inclusion.
BSP carries out this advocacy through financial literacy and education
as well as by making possible, through enabling regulations, the
delivery of microfinance products and services to the underprivileged
and unbanked in our society.
Microfinance products include micro-deposits (which require minimal
maintaining balance), micro-insurance, micro-enterprise loan plus,
housing microfinance loans, and micro-agri loans.
These products are well within the means of low-income households. They
are also relatively easier to access because of simpler documentation.
In a report entitled Financial Inclusion in the Philippines, the BSP
reported the dramatic growth of micro-finance in the country in terms of
the number of participating institutions, number of clients, loans
outstanding and savings generated.
"As of end-year 2012, there are 187 banks with microfinance operations
reaching more than 1 million clients with loans outstanding amounting to
P8.4 billion and savings of P6.4 billion," the BSP said.
Alongside these statistics are inspiring stories of countless
micro-entrepreneurs who have graduated from a hand-to-mouth existence to
earning not only a steady income for their families but also generating
employment for the rest of the community.
According to the same report, enterprises funded through microfinance
already make up 91.6% of industries in the nation, while 30% of the
workforce is employed in microenterprises.
The BSP's microfinance advocacy actually began 13 years ago, when the
General Banking Law of 2000 tasked the country's central monetary
authority to set regulations for microfinance in the banking sector.
To date, the BSP has already released 26 Circulars on microfinance that
include guidelines and regulations on loans, products, and governance.
The result of all these years of building a sound regulatory framework
for microfinance has caught international attention. For the 5th year in
a row, the Philippines has been adjudged by the respected Economist
Intelligence Unit as the best in the world in microfinance policy-making
and implementation.
For this a lot of credit goes to a small group within the BSP called the
Inclusive Finance Advocacy Staff (IFAS), headed by Pia Roman Tayag.
Formerly called the Microfinance Unit, the group was established in 2002
to become the main driver of the BSP's microfinance initiatives.
The team follows a multi-layered approach in promoting microfinance. The
team works with other departments in the BSP in crafting policies that
will benefit the "unbanked." The team also frequently goes to the field
to touch base with stakeholders, to promote capacity-building and
advocacy activities in order to ensure the sustainability and
effectiveness of microfinance products and services being offered.
Tayag, (and the other members of her team Rochelle Tomas, Mynard Bryan
Mojica and Mary Rose Roque) attribute their success to high level support.
"The supportive and visionary leadership of Deputy Governor Nestor G.
Espenilla and Governor Amado M. Tetango Jr. empower us to find ways to
do our work better," she shared.
Tomas is further encouraged seeing firsthand the impact of their work on
ordinary people's lives.
For their remarkable work, the four members of IFAS will be recognized
by the Civil Service Commission on October 24 as winners in this year's
Search for Outstanding Public Officials and Employees.
They will receive the Presidential Lingkod Bayan Award, which is given
to an individual or group for exceptional or extraordinary contributions
that have nationwide impact.
Note: My book "Central Banking for Every Juan and Maria" is now
available in major branches of Fully Booked, Power Books, National
Bookstore and UP University Press.
By Ignacio R. Bunye
Sunday, October 13, 2013
IN LAST week's column, we mentioned how the Bangko Sentral ng Pilipinas
(BSP) helps in attaining a better life for all Filipinos through its
advocacy of financial inclusion.
BSP carries out this advocacy through financial literacy and education
as well as by making possible, through enabling regulations, the
delivery of microfinance products and services to the underprivileged
and unbanked in our society.
Microfinance products include micro-deposits (which require minimal
maintaining balance), micro-insurance, micro-enterprise loan plus,
housing microfinance loans, and micro-agri loans.
These products are well within the means of low-income households. They
are also relatively easier to access because of simpler documentation.
In a report entitled Financial Inclusion in the Philippines, the BSP
reported the dramatic growth of micro-finance in the country in terms of
the number of participating institutions, number of clients, loans
outstanding and savings generated.
"As of end-year 2012, there are 187 banks with microfinance operations
reaching more than 1 million clients with loans outstanding amounting to
P8.4 billion and savings of P6.4 billion," the BSP said.
Alongside these statistics are inspiring stories of countless
micro-entrepreneurs who have graduated from a hand-to-mouth existence to
earning not only a steady income for their families but also generating
employment for the rest of the community.
According to the same report, enterprises funded through microfinance
already make up 91.6% of industries in the nation, while 30% of the
workforce is employed in microenterprises.
The BSP's microfinance advocacy actually began 13 years ago, when the
General Banking Law of 2000 tasked the country's central monetary
authority to set regulations for microfinance in the banking sector.
To date, the BSP has already released 26 Circulars on microfinance that
include guidelines and regulations on loans, products, and governance.
The result of all these years of building a sound regulatory framework
for microfinance has caught international attention. For the 5th year in
a row, the Philippines has been adjudged by the respected Economist
Intelligence Unit as the best in the world in microfinance policy-making
and implementation.
For this a lot of credit goes to a small group within the BSP called the
Inclusive Finance Advocacy Staff (IFAS), headed by Pia Roman Tayag.
Formerly called the Microfinance Unit, the group was established in 2002
to become the main driver of the BSP's microfinance initiatives.
The team follows a multi-layered approach in promoting microfinance. The
team works with other departments in the BSP in crafting policies that
will benefit the "unbanked." The team also frequently goes to the field
to touch base with stakeholders, to promote capacity-building and
advocacy activities in order to ensure the sustainability and
effectiveness of microfinance products and services being offered.
Tayag, (and the other members of her team Rochelle Tomas, Mynard Bryan
Mojica and Mary Rose Roque) attribute their success to high level support.
"The supportive and visionary leadership of Deputy Governor Nestor G.
Espenilla and Governor Amado M. Tetango Jr. empower us to find ways to
do our work better," she shared.
Tomas is further encouraged seeing firsthand the impact of their work on
ordinary people's lives.
For their remarkable work, the four members of IFAS will be recognized
by the Civil Service Commission on October 24 as winners in this year's
Search for Outstanding Public Officials and Employees.
They will receive the Presidential Lingkod Bayan Award, which is given
to an individual or group for exceptional or extraordinary contributions
that have nationwide impact.
Note: My book "Central Banking for Every Juan and Maria" is now
available in major branches of Fully Booked, Power Books, National
Bookstore and UP University Press.
Smart bank opens for business
Smart bank opens for business
By Paolo G. Montecillo
Philippine Daily Inquirer
11:11 pm | Friday, November 1st, 2013
The Bangko Sentral ng Pilipinas (BSP) has approved the creation of the
country's second telco-backed bank, which is expected to roll out
innovative services in the area of wireless payments and microfinance
products for consumers.
In a circular letter released this week, the BSP announced that mBank
Philippines started operations in October.
This was a year after the BSP approved the creation of the bank.
The new thrift bank is owned by Smart Communications.
Smart Communications is the mobile service subsidiary of the country's
leading telco, Philippine Long Distance Telephone Co. (PLDT).
The new bank was registered with the Securities and Exchange Commission
(SEC) last Sept. 3, and started operations on October 16.
According to the regulator, mBank's main office is located in Sta. Rosa,
Laguna. But the bulk of its operations will be done through mobile
phones as it takes advantage of the expertise of its parent firm.
The new bank also recently started operations in Malolos, Baliuag, and
San Jose in Bulacan.
The bank distributes and services financial products leveraging the
airtime distribution network of Smart, which allows the company to
expand faster and cheaper.
Using mobile phones, the company is able to allow its customers to open
bank accounts or access loan products 24 hours a day, seven days a week.
Its services range from savings and loans to insurance products, which
are currently being offered to Smart mobile phone subscribers and
airtime load retailers.
Smart's mBank was established with the help of Finnish development
finance company Finnfund and Dutch development bank FMO.
Financial services delivered through electronic channels, such as mobile
phones, are seen as an effective way to bridge the gap between the
country's formal banking system and the large portion of the population
who are considered to be "unbankable."
Only two in 10 Filipino households have savings accounts with banks,
latest data from the the Bangko Sentral ng Pilipinas showed.
By Paolo G. Montecillo
Philippine Daily Inquirer
11:11 pm | Friday, November 1st, 2013
The Bangko Sentral ng Pilipinas (BSP) has approved the creation of the
country's second telco-backed bank, which is expected to roll out
innovative services in the area of wireless payments and microfinance
products for consumers.
In a circular letter released this week, the BSP announced that mBank
Philippines started operations in October.
This was a year after the BSP approved the creation of the bank.
The new thrift bank is owned by Smart Communications.
Smart Communications is the mobile service subsidiary of the country's
leading telco, Philippine Long Distance Telephone Co. (PLDT).
The new bank was registered with the Securities and Exchange Commission
(SEC) last Sept. 3, and started operations on October 16.
According to the regulator, mBank's main office is located in Sta. Rosa,
Laguna. But the bulk of its operations will be done through mobile
phones as it takes advantage of the expertise of its parent firm.
The new bank also recently started operations in Malolos, Baliuag, and
San Jose in Bulacan.
The bank distributes and services financial products leveraging the
airtime distribution network of Smart, which allows the company to
expand faster and cheaper.
Using mobile phones, the company is able to allow its customers to open
bank accounts or access loan products 24 hours a day, seven days a week.
Its services range from savings and loans to insurance products, which
are currently being offered to Smart mobile phone subscribers and
airtime load retailers.
Smart's mBank was established with the help of Finnish development
finance company Finnfund and Dutch development bank FMO.
Financial services delivered through electronic channels, such as mobile
phones, are seen as an effective way to bridge the gap between the
country's formal banking system and the large portion of the population
who are considered to be "unbankable."
Only two in 10 Filipino households have savings accounts with banks,
latest data from the the Bangko Sentral ng Pilipinas showed.
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