Foreigners can now own up to 60pct of PH rural banks

Foreigners can now own up to 60pct of PH rural banks

ABS-CBNnews.com
Posted at 05/29/2013 5:52 PM

MANILA -- Foreign firms or individuals can now own as much as 60 percent
of any rural bank in the country, following President Benigno C. Aquino
III's signing of an amendment to the Rural Bank Act of 1992 into law.

In a statement, Deputy Presidential Spokesperson Abigail Valte said
Republic Act No. 10574 was signed into law on May 24 amending the
foreign ownership rules for rural banks in the country.

"Non-Filipino citizens may own, acquire or purchase up to sixty percent
(60%) of the voting stocks in a rural bank. The percentage of
foreign-owned voting stocks shall be determined by the citizenship of
the individual or corporate stockholders of the rural bank," the
amendment read.

Previously, rural banks were mandated to be fully owned by Filipinos or
Filipino-controlled banks, firms, associations and cooperatives under RA
7353 or the Rural Bank Act of 1992.

The Bangko Sentral ng Pilipinas will be coming up with an implementing
rules and regulations for the new law which is expected to be published
within 90 days of RA 10574's publication.

RA 10574 takes effect 15 days after its publication in two newspapers of
general circulation.


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CARLOS ANI - Consultant
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BPI targets farm loans

BPI targets farm loans

DAVAO CITY -- Ayala-led Bank of the Philippine Islands (BPI) is
strengthening its agribusiness loan operation in Mindanao, an official
said, noting that the island has the elements necessary for high growth.

lfonso L. Salcedo, Jr., BPI executive-vice president, said Mindanao --
which accounts for about a third of the bank's agribusiness loans --
would play a key role in a plan to raise exposure to the subsector to
₱38 billion over the next four years.

Perlina I. Padilla, head of the bank's Agribusiness Solutions group,
said BPI was growing its agribusiness portfolio between 16%-20%
annually. Of the bank's total loan portfolio, about 15% is in
agribusiness, Ms. Padilla said.

Mr. Salcedo, who was speaking at the launch of the Agribusiness
Solutions facility, said: "What we hope is that we will be able to
provide credit access to even the small and medium-size agribusinesses...."

He said BPI wanted to cash in on the country's good business climate.
The agribusiness sector, he added, is ripe for growth.

"Agriculture is something that is staring at us," Mr. Salcedo said,
adding that the bank wanted to help the government achieve inclusive
growth and food security.

The bank has tapped Genus Pig Improvement Co., which specializes in
biotechnology products, for the venture.

Andrew J. Bateson, Genus' business development director for Asia, said
his company was looking to help local hog raisers maximize their incomes.

BPI, said Mr. Salcedo, is not limiting its agribusiness drive to the hog
and poultry business.

The bank also launched its Sustainable Energy Finance aimed at reducing
agribusiness dependence on fossil fuels. -- Carmelito Q. Francisco
- See more at:
http://www.bworldonline.com/content.php?section=Finance&title=BPI-targets-farm-loans&id=70779#sthash.eyhn1zFX.dpuf

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CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
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My Websites:
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DEVJOBS - http://www.devjobsmail.com
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http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
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Coco sugar sweetens small town’s finances

Coco sugar sweetens small town's finances
By Kaiza Marie Nawal
Inquirer Mindanao
11:26 pm | Saturday, May 25th, 2013

DAVAO CITY—The gathering of coconut sap has always been the domain of
tuba gatherers in the country but in a small village in Misamis
Oriental, family members were seen lending each one a helping hand in
performing the task.
Linabu, however, is not Balingasag town's tuba capital even if family
members would gather at least three times a day as they pour on large
vats or containers the saps that their kin had collected from the
towering coconut trees.
"Sap gathering is also becoming a family affair in our community," Maria
Virgenia Pejoro, general manager of the Linabu Agrarian Multi-Purpose
Coop. (Lampco), says.

Since five years ago, the sight of family members helping each other in
gathering coconut sap has always been the scene in the village.

The gathered sap would then be turned over to the Lampco office and they
earn money, not just a few bucks, but modest amount of cash enough to
better their lives, according to Pejoro.

"We have noted that the quality of lives of the farmers has
significantly improved," she says.
The sap that Lampco members from 49 family-members gather turns into
coco sugar at the Lampco mini factory inside the village.

Coco sugar has been touted worldwide as having the lowest glycemic index
(GI) of just 35, even beating other sweeteners such as sugar beet, which
has a GI of 64; and sugarcane, which has a GI of about 40.

It is also increasingly becoming a phenomenon because of its supposed
good role in one's health and has been selling hot in such countries as
the United States and Japan.

Because the end-product has become Lampco's cash cow, family members
doubled their efforts, and from just 5-ton a month, their cooperative's
coco sugar production has since doubled.

These days, "a lot of farmers in the area have motorcycles, which they
use for daily commuting, while others were able to send all their
children to school, without compromising their other basic needs,"
Pejoro, beaming with pride, says.
She adds the good things happening at the cooperative were brought in by
their participation in government-sponsored trade fairs in the past,
such as the International Food Exhibition (Ifex) in 2010.
To boost its marketing strategy, Lampco also adopted the tagline "Coco
Sugar: A Smart Way to be Healthy."
The Mindanao Development Authority (Minda), which has been assisting
emerging ventures as Lampco's, says in a statement that at the recent
Market Week Philippines, Lampco was the top grosser in terms of sales
and total amount of orders placed.
Market Week Philippines was a trade fair and showground of on-sale
world-class items and products, Minda, Malacañang's development arm in
the south, says.
Minda says like Lampco, it—along with the Department of Trade and
Industry and the Department of Agriculture—is also assisting 70 other
Mindanao-based food producers, exporters and processors to participate
in next year's Ifex—the largest gathering of emerging and established
businesses in the country.
Pejoro adds Lampco knew the importance of Ifex, which was why the
cooperative will be participating in it anew next year.
"It was during our first Ifex participation in 2010, when we were able
to close a deal with various coco sugar consolidators in Manila, which
demanded up to five tons of coco sugar per month," she says.
Pejoro adds that clinching the deals during the first Ifex was
considered "a huge leap for the cooperative given its humble produce of
at least three kilos per day at the beginning."
"We are currently producing at least 10 tons per month, and we are
thrilled by this increased demand for healthy and organic sugar," she cites.
Another good thing that came to Lampco, Pejoro points out, was the
recent certification of its coco sugar by Iberica Ambicert, the
Spain-based subsidiary of organic-products certifier Ecocert, as
carbon-neutral and genuinely organic.
The Europe-based Ecocert is recognized worldwide—including by the US
Food and Drugs Administration—for its credible identification of
products as purely organic.
Lampco's Pejoro states the shift to coco sugar production was not an
easy path for the cooperative, whose members were mainly copra producers.
First, she says they had to hurdle the mindset that copra production was
easier as one only needed to harvest mature coconuts on a trimester basis.
"Coco sap, the main ingredient for the coco sugar, needs to be harvested
at least three times a day," she says.
Another thing, Pejoro says, was that their members were initially
against using organic materials in their coco farms because it was
perceived as more labor extensive.
"This means huge additional work for the farmers, but when they realized
that it was a better source of income, they eventually joined the loop,"
Pejoro adds.
Other things that helped convince Lampco members to shift to coco sugar
production was the continuous prodding and assistance from government
agencies, including the Department of Agrarian Reform (DAR).
Such that today, it's not only family members who help each other gather
sap.
At the cooperative's packing area, they help one another in packing coco
sugar by kilo and sachets.
Pejoro says they were looking forward to the day when Lampco members and
those in neighboring villages could buy more than just motorcycles and
would be able to send their children even to expensive and exclusive
schools.
She adds as far as they were concerned, it was not a farfetched projection.

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-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
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http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
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Foreign direct investments

Don't blink, PNoy

Solita Collas-Monsod

I READ with great pleasure the May 22 newspaper accounts of PNoy's
reactions to a) yet another move to change the Constitution (Cha-cha)
and b) China's (Taiwan not far behind) bully tactics. I agree with him
completely on these two issues.

With respect to Charter change, the most-used grounds for seeking it
have been economic. The claim is that the economic provisions of the
present constitution -- mostly the restrictions on foreign ownership --
have closed the door to foreign direct investment (FDI), thus resulting
in lost employment and growth opportunities and therefore increasing
poverty. This claim has been dusted off and presented every four or six
years. And the biggest advocates have been, not surprisingly, the
foreign chambers of commerce in the Philippines as well as those who are
legal and/or business advisers/consultants of foreign firms. Their
stance is not surprising because obviously they are profit-seeking.

What may be surprising, at least at first glance, is that a number of
legislators also use the need to change the economic provisions of the
Constitution as the reason for Cha-cha. But a very quick second glance,
pardon the cynicism, will show that a lot of these so-called advocates
actually have another change in mind: the change from a presidential
system of government to a parliamentary system. This change will not
only allow the political dynasties to be more firmly entrenched (a
parliamentary system will do away with term limits), but will afford
them more power -- they don't need to have the backing of the majority
of the Filipino people to become head of government, all they need is
control of the parliament which means an agreement with other political
dynasties.

How will the parliamentary-presidential issue come in? Simple. Once the
door is open for Cha-cha, it will be well-nigh impossible to limit the
change to economic provisions only.

What must be emphasized, again and again, is that neither the need to
lift the economic restrictions on foreign ownership, nor the advantages
of a parliamentary over a presidential system, have any basis in fact.
And as often as these claims have been dusted off and presented, I have
dusted off and presented the empirical findings which belie them.

Just for the record, let me summarize them once again.

With respect to FDI: (1) macro-level data may show an association
between FDI and higher levels of income, but do not establish causality;
(2) micro-level (project) data show positive effects on national income
in a majority of projects, but a sizeable minority -- 1/3 in two
studies, anywhere from 25% to 45% in a third -- had deleterious effects;
(3) historically, FDI played only a minor role in the growth of most
high-performing Asian economies; (4) the factors affecting FDI have been
found to be adequate infrastructure, skill levels (human capital),
quality of the general regulatory framework, clear rules of the game,
and fiscal determination -- note that restrictions on foreign ownership
is not one of them.

Focusing on the Philippines, (5) the restriction on ownership of land is
neutralized by leases up to 75 years on land, and condominium laws on
housing; (6) it is not unusual that companies are controlled with less
than 40% or 20% of the common stock, while "supermajority" requirements
on key decisions protect foreign shareholders.

In brief, therefore, foreign investors may be in happy control or in
beneficial ownership, either by liberal interpretation, or by
redefinition through legislation, or by use of creative financial and
other instruments. Cha-cha is not likely to open any new doors to FDI,
because for all intents and purposes, they are already open. Nor will
Cha-cha be sufficient to bring in FDI, because FDI will not come in
unless the factors affecting FDI enumerated above are addressed.

On the parliamentary-presidential issue, here's: (1) There is
conflicting empirical evidence as to which form of government will lead
to lower corruption; (2) the evidence is pretty strong that presidential
regimes have smaller government spending as a percentage of GDP than
parliamentary regimes (a parliamentary system is one huge pork barrel
system, after all); 3) a parliamentary system, while systematically
correlated with structural policies, has no significant effect on
economic performance.

What is so galling is that the advocates of Cha-cha pretend to be doing
it for the good of the Filipino people, particularly the poor. But they
actually are doing it for their own private benefit. No altruism
involved here. PNoy should unmask them once and for all.

What about China's bully tactics? The Reader should be reminded that
since last year, Bajo de Masinloc/Panatag Shoal/ Scarborough Shoal,
which, as we all know is well within our territorial waters, has been
placed off-limits to Filipino fishermen over a 15-(nautical) mile
radius. By the Chinese government, with Chinese surveillance ships
enforcing the rule. And recently, in the Kalayaan Island (Spratly to the
rest of the world), a Chinese warship chased and otherwise harassed the
40-meter supply and utility boat of Kalayaan town, trying to get it to
sail toward shallow waters and be grounded. How's that for bully tactics?

We obviously can't face them on military grounds (whatever happened to
our mutual defense treaty with the United States), where they have the
obvious advantage. But we are using to the outmost our diplomatic
weapons in the United Nations, where we have the distinct advantage. And
the louder the Philippines protests against the bully tactics of China,
the more difficult it will be for the international community to pretend
that there is nothing amiss.

Taiwan, which is smarting from the one-China policy adopted by most of
the international community, is at the same time trying to apply the
same kind of bully tactics on us -- is that a cultural thing, one
wonders? And worse, has allowed our citizens in Taiwan to be harassed.
The Philippines seems to be retaliating in kind with Taiwanese citizens
in the country, which may be deplorable in principle -- but if that is
the only kind of tactic that will be effective (to give as good as we
get), so be it. In any case, Taiwan will soon be reminded that its
attempt to blackmail us economically by refusing to grant visas to OFWs
is going to boomerang. Why? Because, those OFWs most probably are more
productive than the other foreign OFWs, given their greater educational
attainment; moreover, Taiwan sells more to us than we sell to them (it
has an export surplus with us). So that if push comes to shove, they
will suffer more than we will. And the Taiwanese businessmen are going
to have something to say about that, to their government.

Don't blink, PNoy.
- See more at:
http://www.bworldonline.com/content.php?section=Opinion&title=Don%E2%80%99t-blink,-PNoy&id=70631#sthash.jD9YuJJu.dpuf

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

Banking for inclusive growth

Banking for inclusive growth

By Benel P. Lagua

THE ROLE of finance is to match the demand and supply of loanable or
investible funds. Finance also addresses the allocation of scarce
resources over time, linking the present and the future.

Classically, this function is achieved through two channels. The first
is through intermediaries such as banks, mutual funds, and pension
funds. The other is through financial markets, which include the stock
market and the bond market. In most developed economies, the financial
system is diversified, a situation that allows for safety nets in case
of stress in one of the channels. The Philippines is characterized by
heavy dependence on banking especially as viewed from the limited number
of companies listed in the stock exchange.

Domestic corporations, especially of the small and medium enterprise
(SME) varieties, depend on access to bank funds as their source for
growth, innovation, and expansion. But are the banks responsive enough?

With local interest rates at low levels, the Philippines' getting its
investment grade, and low inflation, asset/stock prices have continued
their dramatic run-up while technically bank credit expanded at
double-digit rates. But the growth in bank credit appears to be skewed.
Interestingly, the Bangko Sentral ng Pilipinas (BSP) has been closely
tracking concentration risk in bank lending especially to the real
estate sector and large borrowers. The other growth driver is
consumption loans. The BSP has been stress-testing concerns on risk of
overextending loans to large conglomerates.

Recent news shows many banks increasing profit levels at record rates.
The question is begged, however: are they doing enough for productive
lending to the real sector?

The Department of Trade and Industry statistics on SME lending shows
that the sector has not kept pace with the overall bank lending growth.
The proportion of funds raised by Philippine SMEs from banks is well
below international standards. Recent reports have also highlighted the
statistics on poverty incidence, which has improved only marginally.
Data from the National Statistics Office show an unemployment rate of
7.1% and an underemployment rate of a high 20.9%.

A paper by Stijn Claessens (2005) of the University of Amsterdam defines
access as the availability of supply of quality financial services at
reasonable costs. Usage refers to the actual consumption of financial
services. The difference between access and usage can be analyzed in a
standard demand-supply framework. Access refers to the presence of
supply and usage is the intersection of the demand and supply schedules.

The demand and supply schedules may be such that there are firms that
have access to financial service, but decide not to use the services or
are voluntarily excluded. Availability of service is a necessary, but
certainly not sufficient, condition for usage. The supply and demand
schedules may fail to intersect, in which case there will be lack of
access or involuntary exclusion. These firms may not have access
because, for example, the barriers to access the formal financial system
are too high, or costs are unreasonably high, and they do not have the
credit record.

The problem of access is indeed complex. Claessens's paper talks of at
least three dimensions of availability, reasonable costs, and the range,
type, and quality of services offered. Another author looks at
dimensions of reliability (Is finance available when needed/desired?),
convenience (What is the ease of access?), continuity (Can finance be
accessed repeatedly?), and flexibility (Is the product tailored to the
needs?).

Given these complications, banks must realize that aiming for inclusive
growth requires going out of their comfort zones and investing in a
delivery mechanism that targets the intended markets in a focused way.
It is hoped that banks, especially the big ones, will consider this
their corporate social responsibility because lending to SMEs will
require major investments in people and technology as well as a
willingness to sacrifice in the very short term for long-term growth. It
is unlike the instant gratification of earning from lending to big
business, but it should lead to a more stable and diversified loan book
that supports job growth.

This writer has taken on such a challenge and is helping build the
Development Bank of the Philippines (DBP) arsenal that will address the
goals of inclusive growth through a responsive SME access-to-finance
road map. This column serves as a public declaration of this commitment,
which we can all look back to down the road. As my new boss, DBP
president Gil Buenaventura exhorts, "Let's stop the talking and start
walking the talk!"


Benel Lagua recently joined the Development Bank of the Philippines as
its Chief Development Officer. A graduate of Harvard's MPA and AIM's
MBM, he teaches part time in the MBA Program of the Ramon V. Del Rosario
College of Business of De La Salle University. The views expressed above
are the author's and do not necessarily reflect the official position of
De La Salle University, its faculty, and administrators.
- See more at:
http://www.bworldonline.com/content.php?section=Opinion&title=Banking-for-inclusive-growth&id=70630#sthash.FMgUUSgK.dpuf


--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

Pawnshops told: know your clients

Pawnshops told: know your clients

By Lee C. Chipongian
Published: May 19, 2013

The Bangko Sentral ng Pilipinas (BSP) has issued a memorandum directing
pawnshops to strictly comply with the rules on the "Know Your Pawner"
policy – their version of the banks' KYC ("Know Your Customer").

The memo, signed by BSP Deputy Governor Nestor A. Espenilla Jr., said
pawnshops should follow the "Know Your Pawner" policy by making sure the
pawner transacting business with them are the true owners of items being
pawned by requiring valid identification documents.

"It has come to our attention that there are pawnshops which are not
adhering to existing regulations on acceptance of pawn items and the
'Know Your Pawner' policy, including the required presentation by
pawners of their valid ID," said Espenilla.

With the new memo, Espenilla reminds all pawnshops to strictly adhere to
BSP rules especially in identifying their customers and to "ascertain
whether the pawner is the true owner of the article/item offers as
pawn". They do this eliminating any grounds for suspicion that the
pawned article/item did not come by through robbery or theft.

The BSP has started to issue metal plates or the "BSP Registration
Plates" to pawnshops last November to help the public quickly identify
registered entities. The metal plates, which will be valid for five
years, will have security features and codes that would be very hard to
fake.

The central bank said the display of the metal registration plates in
the premises of pawnshops will assure customers that they are
transacting with legitimate entities.

In 2009, the BSP started improvements in its supervision of pawnshops by
focusing more on the top brass of the sector. The revisions effectively
updated the 36-year-old policy guidelines on pawnshops.

The central bank has also started efforts to better capture the whole
pawnshop business. At least 30-40 percent of the sector remains outside
of the BSP monitoring system. This is about 4,000 to 6,000 more
pawnshops, which would bring the total to at least 20,000.

Pawnshops engage in the business of lending money on personal property
delivered as security for loans. Millions of Filipinos, who do not have
access to banks, transact their financial business with non-bank
channels such as pawnshops.

As of the end of 2012, the BSP is supervising 17,335 pawnshops.
Pawnshops were legalized in 1973 to provide an additional source of
credit especially for small borrowers left unserved by the banking and
other financial institutions in the country.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

Microfinance ceiling raised

Microfinance deposit ceiling raised
By Julito G. Rada | Posted on Apr. 23, 2013 at 12:00am | 212 views

The Bangko Sentral raised the ceiling on microfinance deposits to give
local banks flexibility to serve low-income earners in the country.

"We increased the ceiling on microfinance deposits from P15,000 to
P40,000… The move is related to [efforts to achieve] financial
inclusion. The move gives MBOs [micro banking offices] greater
flexibility to service the deposit transaction requirements of
low-income earners," Bangko Sentral Deputy Governor Nestor Espenilla Jr.
told reporters.

"Micro deposits can be transacted in MBOs [micro banking offices].
People are saving more and they want to deal with MBOs, which are
accessible to them," he said, adding that many rural and thrift banks
have MBOs.

The regulator earlier allowed rural and thrift banks to establish MBOs
in cities and municipalities where microfinance-oriented banking
services are unavailable.


--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

AUB eyes another rural bank

AUB eyes another rural bank

FAST-EXPANDING Asia United Bank (AUB), the banking arm of the Rebisco
group, is eyeing a rural bank in Northern Luzon that it will merge with
one of its subsidiaries, its top official said.

"AUB is conducting its due diligence right now on one rural bank located
in Northern Luzon," AUB President Abraham T. Co said in a recent interview.

He, however, refused to identify the rural bank, saying there are still
"issues" being resolved and AUB "is still studying the acquisition."

The bank chief said the rural bank is "big" in terms of assets and will
allow AUB to "grow its presence" in Northern Luzon.

Mr. Co said the assets of the rural bank, should AUB pursue with the
acquisition, will "likely be merged with the Rural Bank of Angeles."

The Rural Bank of Angeles, located in Angeles City, Pampanga, was
acquired by AUB in July 2009 allowing the universal bank to extend its
reach outside Metro Manila. The Rural Bank of Angeles has five branches
and other banking offices in Pampanga and Tarlac, according to the
bank's 2010 annual report.

AUB has been buying other banks as part of its expansion plans. Last
year, it acquired the banking assets and assumed the liabilities of
Asiatrust Development Bank, Inc. The year before, the bank purchased the
Cooperative Bank of Cavite.

AUB is in the process of preparing for its initial public offering
(IPO), which it hopes will raise some P11.31 billion.

Funds raised from the IPO will be used to strengthen the bank's capital
base, bankroll its expansion plans (which include the acquisition of new
branch licenses and the expansion of its branch network), and for
improvement in information technology system and general banking operations.

The bank currently has 107 branches nationwide and plans to add 45 more
this year.

Net profits of AUB rose by 19% to P1.36 billion last year. -- Ann
Rozainne R. Gregorio



--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

200 banks join microfinance bandwagon

200 banks join microfinance bandwagon

By Ted Torres (The Philippine Star) | Updated April 2, 2013 - 12:00am

MANILA, Philippines - There are 200 banks and another 2,000 microfinance
institutions (MFIs) in the Philippines servicing at least seven million
microfinance clients, based on a study released recently by the Asian
Development Bank (ADB).

The study reported that majority of the commercial banks catered
indirectly to the microfinance sectors-- through their socially-oriented
foundations -- by providing wholesale funds to private institutions
engaged in retail microfinance services.

"Some commercial banks, however, opted to establish their own rural or
thrift banks that are wholly engaged in microfinance operations," it added.

The Bank of the Philippine Islands (BPI) for example established BPI
Globe BanKO, a thrift bank utilizing mobile phone technology to extend
microfinance.

The Rizal Commercial Banking Corp. (RCBC) operated its own microfinance
oriented thrift bank, the Rizal Microbank.

While East West Banking Corp. acquired a Mindanao-based rural bank to
establish a microfinance platform.

The ADB reported that the Philippines is considered one of the countries
in Asia with a relatively developed microfinance industry that provides
financial services to the low-income sector.

The Economist Intelligence Unit (EIU) recognized the Philippines as one
of the countries in Asia with "very strong regulatory regimes and good
prospects for MFIs to enter the sector and perform effectively" for
three consecutive years (2009-2011). In 2010-2011, the country was
adjudged as having the best microfinance regulatory framework among 54
countries.

But the report said that the challenges remain enormous.

The National Statistical Coordination Board (NSCB) reported that poverty
incidence in the Philippines remains one of the highest, next to
Cambodia with 30.1 percent and Lao People's Democratic Republic with
27.6 percent in 2010.

The poor still do not have access to various types of financial services.

The 2011 World Bank report on the finance sector reported that only
about 30 percent of Filipinos used formal financial services (lower than
the East Asia average).

It said that while branches of formal financial institutions have been
increasing, access to and use of financial services have remained
limited for poorer and more rural areas.

This was further substantiated by an NSCB report that among the basic
sectors, fisherfolk had the highest poverty incidence at 41.4 percent in
2009 followed by farmers at 35.7 percent.

"One of the perceived barriers is the lack of or inadequate access to
financial services of the poor, which has been mostly limited by
geographic distance, high cost of services, inappropriate products, and
stringent and tedious documentary requirements," the ADB report added.

More attention must be given to the financial literacy of the poor,
consumer protection, and accountability to customers to ensure sound
microfinance practices and that the poor have access to safe financial
services.



--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

Banking can do more good for the poor than only helping entrepreneurs.

Beyond Business: Rethinking Microfinance
Banking can do more good for the poor than only helping entrepreneurs.

BY TIMOTHY OGDEN, JONATHAN MORDUCH | MARCH 28, 2013

In just 30 years, the microfinance movement has reached 200 million
people who had been deemed "unbankable." That's a stunning success. But
the narrative that drove this success has implicitly shut the vast
majority of the unbanked out of the system. That's why it's time to
change the story, and our minds, on how microfinance works.

The rise of the microfinance industry has been driven by a simple
narrative, most closely associated with Muhammad Yunus and the Grameen
Bank, joint recipients of the Nobel Peace Prize in 2006: Get capital
into the hands of competent but cash-starved entrepreneurs, who would
need loans of just a few hundred dollars to start shops and other
micro-enterprises. While this sort of lending is more complicated than
that, microfinance has certainly worked in the sense that most loans in
most countries are repaid on time, most lenders have steadily grown, and
most investors have been happy with the results.

By keeping the focus on small businesses, this microfinance narrative
keeps us in our comfort zone. We can intuit how small loans can make a
big difference for tiny enterprises that would otherwise depend on local
loan sharks or never start in the first place. More important, we can
imagine how such loans could be repaid with interest, yet still benefit
the poor. The problem is, by clinging to this concept, we have kept
ourselves from seeing what a more inclusive approach could mean for the
world's poor -- and what it is that actually makes the micro-loan model
work reasonably well today.

Consider Selco, an Indian company that sells solar-powered lighting to
people unable to connect to the grid, or for whom power outages are way
too common. The aim of Harish Hande, the engineer who founded Selco,,
was to give households an alternative to expensive, non-renewable power
sources.

Customers liked the Selco lanterns, but many balked at the price --
about $140 for the cheapest system. Hande saw that customers would only
be interested if they could make payments over time. So Selco built
partnerships with banks, and customers can now acquire lanterns and
solar panels by taking out loans payable in installments over 3-5 years.
Since 1995, about 150,000 customers have received such financing to
purchase solar-powered systems. As a result, their children can do their
homework at night, the air in their houses is cleaner, and their
businesses (if they have them) can stay open later.

A similar story can be told about WaterCredit, a non-profit organization
dedicated to financing improvements in household sanitation. To date,
WaterCredit has made 65,000+ loans that have brought access to clean
water and safe sanitation to close to 400,000 people in India,
Bangladesh, Kenya, and Uganda. The loans fund household water and
sewerage connections, toilets and pit latrines, tubewells, and rainwater
harvesting tanks.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

BSP to revise cross-selling regulations

BSP to revise cross-selling regulations

By Ted P. Torres (The Philippine Star) | Updated March 22, 2013 - 12:00am

MANILA, Philippines - The cross-selling regulations of the Bangko
Sentral ng Pilipinas (BSP) is presently undergoing revisions.

According to BSP Deputy Governor Nestor Espenilla Jr., specific
proposals are already in draft form and that these are being distributed
for comments with the different institutions involved.

"We already have specific proposals, and that it is just undergoing
final legal review for the BSP," Espenilla said.

Espenilla said they are consulting with banks and other interested
parties. "I assure that it will be responsive to what the bankers are
saying," he said.

The present practice of cross-selling under BSP regulations allows
universal banks or expanded commercial banks to offer their products and
services to affiliate entities, such as life insurance firms.

BSP Circular 357 issued in 2002 also states that for an insurer to be
classified as an affiliate, the bank must own at least five percent
equity of the said entity.

The possible amendments to the circular will open the practice of
cross-selling among commercial and thrift banks.

Espenilla said that in the case of life insurance, the new proposal may
allow the sale of life insurance but limited to traditional or pure
protection insurance products. "It should be finalized within the year,"
he added.

Thrift and rural banks are already allowed to sell micro-insurance
products through its branches, as long as there are no investment features.

These products have premiums ranging from P50 up to P500, while coverage
amounts up to a million pesos only.

In the banking system of other regions, bancassurance is widely
practiced without the exclusivity of a cross-selling regulation in place.

"When you enter a bank branch for example in Singapore or Hong Kong, you
can pick out brochures of insurance companies and make transactions over
the counter," one insurer said, adding that there may be three to five
insurers selling their wares at any given bank.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

Peso to go back to P41:$1 territory in April, May

Peso to go back to P41:$1 territory in April, May

by Kathleen A. Martin, ABS-CBNnews.com

Posted at 03/20/2013 3:59 PM | Updated as of 03/20/2013 10:32 PM

MANILA, Philippines -- The Philippine peso is expected to average within
the P41 to the greenback in April and May, slightly depreciating from
the previous months as the central bank implements more actions curbing
the currency's appreciation.

"BSP (Bangko Sentral ng Pilipinas) and other government officials have
become wary of the peso appreciation and appear ready to apply stronger
means to curb the negative impact of large portfolio capital inflows,"
the First Metro Investment Corp. and University of Asia and the Pacific
said in the latest issue of Market Call.

"Due to BSP and other government actions, we do not expect further
appreciation of the peso in Q2 (second quarter). Rather, it may actually
start off on a mild depreciation mode as foreign investors pull out
profits especially in Q2 to pay off their income taxes," FMIC and UA&P
stressed.

From an expected average of P40.96:$1 in March and an actual average of
P40.67:$1 in February, the peso is forecast to average P41.17 to a
dollar in April, and P41.67 against the greenback in May.

"While the peso may have an appreciation bias due to robust portfolio
investments inflows, we are expecting that the BSP will be more
aggressive to stem this appreciation," FMIC and UA&P said.

Last year, the peso has strengthened almost 7% against the dollar,
cutting revenues of the export industry and the business process
outsourcing sector, among others. The appreciation streak of the local
currency has also hurt families dependent on remittances from overseas
Filipino workers, thus, reducing their spending power.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

MSMEs provide more employment – BSP

MSMEs provide more employment – BSP

Written by RAADEE S. SAUSA

The Bangko Sentral ng Pilipinas (BSP) cited that the micro, small and
medium enterprises (MSMEs) provides great employment opportunities.

"And if we are to raise our national economic vantage point and take
advantage of the momentum coming into 2013, thrift banks need to
consider lending more to this economic segment [MSMEs]," BSP Governor
Amando Tetangco Jr. said on Wednesday during the Chamber of Thrift Banks
(CTB) Annual Convention.

"I say this because MSMEs provide great employment opportunities. A
healthier MSME sector will help ensure our economic growth is
broad-based and inclusive," he added.

Tetangco said that thrift banks, however, must not just lend more in
terms of nominal amounts. The challenge to the industry really is to
ensure that such lending continuously creates further opportunities.

Meanwhile, Tetangco challenge the CTB to further improve credit
underwriting standards for real estate and consumer loans and raise
vantage point by looking at its processes with the lens of financial
stability; interact with its clients and raise vantage point by
enhancing practices with the heart of consumer protection and financial
education, and increase lending to MSMEs and raise vantage point by
lending with the mind to create greater value.

"But much more can be done," he said.

"It is never an easy task to move forward . . . but rest assured that
the BSP will be with you as we take that journey together into broader
horizons," Tetangco said.

Thrift banks in sweet spot

Thrift banks in sweet spot

THE THRIFT banking industry has the momentum to grow rapidly in 2013,
especially if it can take advantage of opportunities in the consumer
lending business, officials said.

"We have entered 2013 from a position of strength, and with some
momentum. The onus is on you, on us, to make the most of this advantage,
to bring you forward in your chosen objective," Bangko Sentral ng
Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said at the Chamber of
Thrift Banks national convention yesterday.

The industry saw its total assets grow by a tenth last year to P666.17
billion from P607.43 billion in 2011, he pointed out. It amassed P529.80
billion in deposits and issued P449.27 billion in loans.

At this starting point, thrift banks can readily "broaden their
horizons," he added.

This is even more important this year given the low interest rate
environment, Bank of the Philippine Islands President and Chief
Executive Officer Aurelio R. Montinola III said at the same event.

"The already low interest rates are becoming even lower. We have to
accept that this is the long-term scenario, the new normal," he explained.

With interest rates down, it will be harder for banks to raise deposits
and costlier to maintain branch networks, he noted. On the upside, lower
interest rates mean less non-performing loans.

NICHE LENDING
To grow consumer lending -- which accounts for bulk of the thrift
business -- Mr. Montinola urged banks to find a niche in the industry.

"Focus on a few good areas or else you run the risk of being too similar
to major commercial banks, which offer everything," he said.

"Of the big three -- auto, housing and SME (small and medium enterprise)
loans -- be great in one or two areas for a better chance of standing
out and getting good and good-paying customers."

This specialization should be translated into the product design, the
customer experience and the sales strategies of the bank, he said.
Consumers are less brand-loyal now, so the performance of the bank must
stick.

Moreover, Mr. Tetangco said, thrift banks must ensure that consumers are
always protected.

"The BSP is in the early stages of formalizing specific standards for
consumer protection, including how banks should handle consumer
complaints," he revealed.

The regulator will issue standards on consumer protection, and banks
will be assessed on their implementation of the rules.

Consumer protection will be considered a core banking function, and the
bank's given score will be factored into the CAMELS framework (capital,
asset quality, management, earnings, liquidity and sensitivity to market
risk) -- the broad criteria used by the BSP to check financial health.

CROSS-SELLING

Another driver for the growth of the thrift banking industry will be the
cross-selling of products.

Mr. Montinola said, "Banking is becoming a business of scale. For thrift
banks, bigger banks can be value-added product providers."

It will be difficult, costly and time-consuming for a thrift bank to
establish a bancassurance or asset management arm, he stressed. Instead,
it can offer the products of larger banks in its branches, in exchange
for a fee.

BSP Deputy Governor Nestor A. Espenilla, Jr., for his part, assured that
the rules for cross-selling have already been drafted. They will be
released once they clear a final legal review.

The BSP aims to let banks sell each other's simple savings and insurance
products within the year, in order to provide more appropriate offerings
for consumers.

Mr. Montinola said, "Others say this is cannibalization, but isn't this
a risk we face every day anyway?"

SME LENDING

Lastly, thrift banks should consider lending more to the small businesses.

According to the BSP chief: "SMEs provide great employment
opportunities. A healthier SME sector will help ensure our economic
growth is broad-based and inclusive."

The industry is "well-equipped" to support the SME sector, he noted,
which presents a large, untapped market for banks.

"For the thrift banking industry, the growth trajectory that many are
anticipating suggests even better times ahead. It is therefore in our
collective interest... to agree on a common vision where thrift banks
have a definitive role to play," Mr. Tetangco said.
- See more at:
http://www.bworldonline.com/content.php?section=Finance&title=Thrift-banks-in-sweet-spot&id=67548#sthash.RVltDlvZ.dpuf

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

What Do Toilets Have to Do With Microfinance?

What Do Toilets Have to Do With Microfinance?

March 19, 2013 in Center for Financial Inclusion,

Posted by Danielle Piskadlo, Senior Program Specialist, CFI

Biogas toilet made possible through WaterCredit

An estimated 2.6 billion people in the world lack access to basic sanitation. This reality is a root cause of much sickness and disease throughout the developing world. Like many things, water and sanitation problems disproportionately affect women and children. According to data from WHO/UNICEF, women globally spend an estimated 200 million hours each day collecting water, a child dies every 20 seconds from a water-related illness, and girls often do not attend school during menstruation, or drop out at puberty, due to the lack of clean and private sanitation facilities.

I had never thought much about how toilets might relate to microfinance but lately water, sanitation, and toilets seem to be all I read about.

I was vaguely aware of the efforts of WaterCredit.org to put microfinance tools to work in the water and sanitation sector by connecting MFIs with communities in need of clean water and toilets. I also knew a little bit about Peepoople, the makers of Peepoo, a personal, single-use, self-sanitizing, fully biodegradable toilet that after use, turns into fertilizer that can improve livelihoods and increase food security. This product is not only improving health and livelihood but has also created a series of work opportunities, both formal and informal.

The pace increased in February, when I heard toilets mentioned in the financial inclusion context three times – all in separate places. First, Jacqueline Novogratz, a keynote speaker at the recent Harvard Social Enterprise Conference, described an Acumen Fund investment in Ecotact, a Nairobi-based company that leads the Ikotoilet project, building and operating high-quality, public toilet and shower facilities, which customers pay five shillings (US$0.06) to use.

Through Ikotoilets, Ecotact is growing inclusive markets and positively impacting financial inclusion in two ways. One, by creating facilities known as “Toilet Malls” – kiosks with toilets that also serve as retail outlets for basics such as airtime, snacks, and shoe shine services. Ecotact hires physically challenged staff to operate and clean the units after each use. According to Wanjiru, a physically challenged Ikotoilet employee, “most people believe that disabled people are beggars. In cases where you are competent as a professional, you really have to prove yourself before you are employed. It was a struggle for me to put food on the table before I got a job as a cleaner in this toilet.”

Shortly after the Harvard conference, the Microfinance Gateway published a report called Savings, Loans…and Toilets about Grameen Koota in India and its efforts to meet customers’ needs that go beyond the boundaries of a typical financial institution. According to the article, “that’s why, when customers requested it, Grameen Koota focused on the water and sanitation needs of their clients, including…toilets.”

Finally, I read The Economist article “Bit Loans,” which describes how microfinance institutions are going mobile, including arming loan officers with tablet computers. Among other uses, these devices are taken into a slum in Nairobi to check with owners of portable toilets that charge per use and sell the waste to Sanergy, which converts it into fertilizer and electricity. Loan officers also use these tablets to estimate how many people live in a toilet’s vicinity – information that is then used to calculate future revenue for toilet providers.

Image Credit: WaterCredit

--   -----------------------------------------------------------  CARLOS ANI - Consultant   Chairman of the Board - SEEDFINANCE Corporation   Mailing address:  PO Box 90 UPLB Los Banos Laguna, Philippines 4031    Emails: carlosani@gmail.com , carlosani@seedfinance.net   Landline Phone:    +63495010127 (PLDT)  Cellphone Numbers: +63908-1737072 (Smart)    My Websites:   CARLOSANI.COM - http://www.carlosani.com   SEEDFINANCE Corporation - http://www.seedfinance.net  DEVJOBS        - http://www.devjobsmail.com   PHILDEVFINANCE - http://phildevfinance.posterous.com    		 http://phildevfinance.blogspot.com   Family website  - http://www.anifamily.net    Skype name:  carlosaniph   ----------------------------------------------------------      

Tax Audits to be prioritized for those paying less than P200K in taxes

Tax Audits to be prioritized for those paying less than P200K in taxes

SELF-EMPLOYED individuals, small business owners and professionals
(SEPs) who pay less than P200,000 in income taxes annually will be
prioritized for audit by the Bureau of Internal Revenue as the
government seeks to improve its finances.

"I signed a revenue memorandum circular, basically stating that although
all taxpayers will be audited, the priority that will be audited are
those business taxpayers whose average payment are below P200,000," said
Kim S. Jacinto-Henares, Bureau of Internal Revenue (BIR) commissioner,
in a briefing yesterday.

"We'll look at those who pay less than that and whose growth rate in
their income tax payment is below 35% and gross revenues reported did
not go up by more than 40%," she added.

The circular, once released, will be effective "immediately."

The BIR chief said this was part of the government's drive to widen the
collection base and increase the overall tax effort.

"Our data shows that about 1.8 million are registered as SEPs but only
402,934 of those filed returns, paying an average of P33,441 annually.
We want to find those missing 1.4 million registered as SEPs," Ms.
Jacinto-Henares said.

She added that 1.8 million was also a "conservative" number.

"PRC (Professional Regulatory Commission) registrations show two million
active professionals, while in the DTI's (Department of Trade and
Industry) database, there are 816,759 registered micro, small and medium
enterprises," she noted.

Apart from accounting for all registered SEPs, average payments must
also be increased, Finance Secretary Cesar V. Purisima said.

"The current average annual payment of P33,441 implies a monthly income
of P23,647. This is unbelievable considering the lifestyles of most
entrepreneurs and professionals. It is reasonable to expect the average
to reach P200,000," he said.

The Finance chief said visits to the BIR's revenue district offices
revealed extremely low tax payments.

"There were doctors in Pangasinan that paid only P800 for the year,
lawyers in Mindoro who paid only P121, a radio and TV practitioner in
Quezon City who paid only P400 and a businessman in Cagayan de Oro who
paid only P1,000," he said.

"This implies that these professionals earn even less than minimum wage
earners. These numbers are ridiculous."

He said the BIR was also looking into benchmarking average tax payments
by profession and industry.

Ms. Jacinto-Henares added that aside from ongoing initiatives to improve
operational efficiency, the BIR will also use existing information from
various organizations in order to effectively monitor taxpayers, such as
looking into business permits issued at the local level and looking into
memberships in professional organizations.

BIR data showed that total individual tax collections amounted to P223
billion last year, 14.95% higher than the P194 billion recorded in 2011.
Of this, P181.7 billion or 81.5% came from taxes withheld on wages of
compensation income earners. In comparison, SEPs only accounted for
P15.1 billion or 6.8%.

The ratio of payments made by the sector to the bureau's total tax take
from individuals, the BIR noted, declined from 8.4% in 2010 and 6.9% in
2011. Collections from SEPs currently only account for 0.13% of the
country's gross domestic product (GDP), Mr. Purisima also said.

"We want to increase this to 2.1% of GDP or P360 billion by 2016," the
Finance chief said.

"This will help us in achieving our total tax effort ratio goal of 16%
of GDP by 2016."

- See more at:
http://www.bworldonline.com/content.php?section=TopStory&title=Audits-to-be-prioritized-for-those-paying-less-than-P200K-in-taxes&id=67457#sthash.LUAvqN2n.dpuf

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

ADB: In Asia, wealth buys access to clean water

ADB: In Asia, wealth buys access to clean water

(philstar.com) | Updated March 13, 2013 - 8:30pm

MANILA, Philippines (AP) — Ninety-one percent of people living in Asia
have improved access to clean water, a remarkable achievement over the
last two decades in the world's most populous region. But its richest
countries and wealthiest citizens likely have better water supplies and
governments better prepared for natural disasters.

The assessments made by the Asian Development Bank in a study published
Wednesday say countries in the region could be disproportionally
affected by the potential impact of climate change if they did not
rethink how they manage their water resources. Nearly half of the deaths
caused by water-related disasters and 90 percent of people affected by
such disasters from 1980 to 2006 lived in Asia, the report said.

Developed nations like Australia, Singapore, New Zealand and Japan top
the list of nations best prepared to cope with floods, droughts,
hurricanes, storm surges and landslides, while Nepal, Laos, Cambodia,
Tajikistan, the Pacific nation of Vanuatu and Bangladesh are the least
prepared.

No country in the Asia-Pacific region is a model for its management of
water services and resources, according to the Manila-based lending and
development institution, whose aim is cutting poverty. Thirty-eight
developing countries have low levels of water security or have barely
begun to improve, and only 11 have set up infrastructure and management
systems.

"While the Asia-Pacific region has become an economic powerhouse, it is
alarming that no developing country in the region can be considered
'water-secure,'" said ADB Vice President Bindu Lohani.

Nearly 80 percent of Asia's rivers are in poor health. Urban populations
are on the rise and so is pollution, while food and energy needs are
putting more pressure on the water resources.

Unless these competing needs are balanced, "water security will remain
elusive, undermining development gains and the quality of life for
billions of people in the region, especially the poor," said Ravi
Narayanan, vice chair of the Asia-Pacific Water Forum governing council.

The good news is that the proportion of the region's population with
access to drinking water has increased from 74 percent to 91 percent
between 1990 and 2010. Progress has been made in all subregions expect
the Pacific, where access remains low at 54 percent.

However, access to reliable tap water supply paints a different picture.
Although more than 900 million people gained access to piped water, more
than 65 percent of the region's population does not have what should be
considered a secure household supply.

Most cities in Asia, which accounts for half of the world's 20
megacities, have extensive infrastructure for domestic water treatment
and supply, although piped systems often stop short of individual
households, and potable water services are not maintained full-time at
the point of delivery, the ADB said.

For instance, some cities in China and South Korea provide
round-the-clock water service, but in many other cities tap water is
only available for limited hours. In Jakarta, water is available in most
areas for about 18 hours each day, and in Chennai, India, water is
available for an average of only about four hours each day.

Then there is the question of health. About 88 percent of all diarrhea
cases are attributed to lack of adequate access to water and sanitation.

Although the percentage of people with access to improved sanitation
rose from 36 percent in 1990 to 58 percent in 2010, 1.74 billion people
in Asia and the Pacific continue to live without access to improved
sanitation. More than 792 million people still suffer the indignity of
practicing open defecation, and more than 631 million of these people
live in rural South Asia.

There are bright spots, with Southeast Asia making rapid progress,
expanding coverage by 23 percent between 1990 and 2010, and East Asia by
35 percent.

The gap between rich and poor is a big factor when it comes to water
access and management, the report said. In South Asia, led by
Bangladesh, it is estimated that up to 96 percent the rural rich have
access to sanitation, compared to only 2 percent to 4 percent of the
rural poor. There has been little progress on improving access to
sanitation in the Pacific islands, the ADB said.

"In Asia and the Pacific, the correlation between income and access is
unequivocal —the wealthy have better access than the poor to water
supply and sanitation. In addition, the disparity is growing, especially
in the burgeoning smaller cities across the region," the ADB said.

Differences between richer and poorer communities amount to 96 percent
in Nepal and 92 percent in Cambodia, India, and Pakistan, it said.

In India and the Philippines, another study by the U.N. Economic and
Social Commission for Asia and the Pacific found that public utilities
responsible for providing water and sanitation services "lack capacity
in all aspects of sustainability, including effective functioning,
financing, and demand responsiveness."

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

Landbank life extended

Landbank life extended

By Zinnia B. dela Peña (The Philippine Star)
Updated March 12, 2013 - 12:00am

MANILA, Philippines - President Aquino signed into law Republic Act
10374, an Act extending the life of the Land Bank of the Philippines
(Landbank), otherwise known as the Agricultural Land Reform Code, for
another 50 years.

Landbank's corporate life was extended for a period of 50 years from the
expiration of its or its original term of Aug. 8, 2013, renewable for
another 50 years.

Landbank, the country's fourth largest bank in terms of assets, funds
the country's agrarian reform program and serves as the depository bank
of government entities and agencies. It also collects taxes and fees for
government agencies.

It also the main distributor of funds under the government's conditional
cash transfer program.

Landbank officials said the extension would provide the state-run bank
flexibility to sign long-term loans or issue long-term bonds and provide
continued development financing to farms, microenterprises, smalland
medium enterprises, banks and local government units.

Last year, Landbank released P39.9 billion in funds to support the
farming and fisheries sector benefiting 772,892 small farmers and
fisherfoll.

"Landbank remains aggressive in channeling assistance to the farming and
fisheries sector as we aim to further strengthen and sustain their
viability to accelerate the development of rural economies," said
Landbank president and CEO Gilda E. Pico.

Of the amount, P39.6 billion was released to small farmers and P323
million to fisherfolk. These loan releases were channeled through 888
farmers and fisherfolk cooperatives, 313 countryside financial
institutions, and 160 irrigators' associations.

By agricultural activity, loans for crop production reached P18.4
billion in 2012 while loans for livestock projects reached P3.8 billion.
Other economic activities financed by Landbank last year include
wholesale and retail trade, manufacturing, agri-processing and fishery.

Regions with the highest loan releases to small farmers and fisherfolk
are Central Luzon with P9.9 billion followed by Cagayan Valley with P5.1
billion, and Central Visayas with P4.9 billion.

Meanwhile, Landbank''s loans to its priority sectors amounted to P205.3
billion in 2012, 19 percent higher than the previous year's P172.1
billion. of the total, 75 percent of P205.3 billion made up Landbank's
gross loan portfolio amounting to P273.8 billion.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

BPI pushes for agribusiness devt in Luzon, Mindanao

BPI pushes for agribusiness devt in Luzon, Mindanao

Published on Thursday, 07 March 2013 19:38
Written by Marvyn N. Benaning / Contributor

BANK of the Philippine Islands (BPI) is betting heavily on agriculture
this year and increasing its involvement in the sector by launching a
loan program designed to benefit livestock raisers in Central Luzon, as
well as expanding business corridors in Mindanao like the cities of
Cagayan de Oro in Misamis Oriental province, General Santos in South
Cotabato province and Davao.

Through its BPI Agribusiness Solutions, the bank has created a program
that would support poultry raisers, hog farmers and entrepreneurs and
small companies engaged in cattle fattening.

For starters, BPI was to launch BPI Agribusiness Solutions at the
Holiday Inn Clark hotel in Pampanga province's Clark ecozone on
Thursday, with BPI Executive Vice President and Corporate Banking Group
head Alfonso Salcedo Jr. expected to hold a media briefing and present
an overview of the program, along with BPI Senior Vice President Budong
SL. Castro and BPI Assistant Vice President Pearl Padilla.

Agriculture Undersecretary for Administration and Finance Antonio Fleta
was also expected to deliver a message on behalf of Agriculture
Secretary Proceso J. Alcala.

Andrew Bateson of Genus Pig Improvement Co. (Genus PIC) was to present a
paper titled "Genus PIC: Helping Nourish the World" followed by Vincent
Borromeo, who was scheduled to discuss "World-class Pig Production in
the Philippines."

The bank was also set to tackle "BPI Sustainable Energy Finance," which
was expected to show that agribusiness companies could use farm waste as
an energy source and thus reduce their dependence on fossil fuels.

BPI Vice President JM Sangco, also head of North Luzon Provincial
Lending, was to deliver the closing remarks.

Technical lectures on livestock production and poultry management would
cap the event.

Highly important

"THE agriculture sector is highly important for the Philippines as it
promotes food security. Agriculture promises to be the key to alleviate
poverty among millions of Filipinos who depend on farming and
livestock-raising. A stronger agriculture sector is needed to sustain
growth and food sufficiency," BPI said.

The bank stressed that a strong participation in agribusiness
development is part of its corporate social responsibility.

What compelled BPI to launch its agribusiness campaign this year is its
strong belief that the Philippines will be a big player in the livestock
industry in Southeast Asia. The bank noted that the country is free of
the food-and-mouth disease that has been the bane of cattle raisers in
the region.

Moreover, the Philippine poultry industry has been free from the
bird-flu virus that has decimated the stocks of chicken and duck raisers
in mainland Asia.

BPI also said agriculture has contributed 12.3 percent or P11.9 billion
of the country's gross domestic product in 2011. The labor force in
agriculture is 13 million, or 35 percent out of the total labor force of
37 million.

"BPI Agribusiness Solutions currently lends to piggery, poultry and
other agri-related businesses like fish production, fruits, vegetable
and crop production, post-harvest operations and food processing,
agricultural trading and sustainable/renewable-energy financing," the
bank said.

"Considering that both pork and poultry products are top staple foods
after rice and fish, there is a projected 10-percent increase in demand
for pork and about a 4-percent increase for chicken in 2013," it added.

"Currently, imports supply 153,000 metric tons [MT] of pork [6.82
percent of total consumption] and 179,000 MT for chicken [10.86 percent
of total consumption]. It is in these two big windows of opportunity
that BPI has decided to go big in 2013," the lender said.


Two agriproducts

FOR this year, BPI will unveil two agriproducts. The first, "BPI
Agribusiness Solutions Commercial Hog Breeding and Fattening," involves
the partnership between BPI and the Pig Improvement Co. (PIC) as the
technology provider and breed supplier for prospective clients. The PIC
targets to expand its sow level from 120,000 to 180,000, a 60,000
sow-level increase representing a 30-percent share of the total sow
level population.

The second, "BPI Agribusiness Solutions Poultry Contract
Growing/Commercial Broiler Operations," entails financing
qualified/prospective poultry contract growers of San Miguel Foods Inc.
(SMFI), which is bidding to increase its bird population by 5 million in
2013. Other integrators such as Bounty Fresh and other commercial
poultry integrators will also be tapped, depending on their expansion plans.

BPI said it is venturing into agriculture in consonance with the
Agri-Agra Law, which mandates banks to apportion 20 percent of its total
loan portfolio for agri-agra loans.

"If banks are unable to meet this ratio, they will be penalized by the
Bangko Sentral ng Pilipinas. BPI, like all other major banks, gets
penalized every now and then. BPI would therefore like to ensure full
compliance to this law from 2013 onward through the BPI Agribusiness
Solutions," the bank said.

BPI Agribusiness Solutions is concentrating on farm-growth corridors in
Central Luzon and the cities of Cagayan de Oro, General Santos and
Davao, and supporting existing clients of integrators like the PIC, the
SMC, Bounty Fresh and locals who want to expand their businesses,
whether they are BPI clients or not.

Middle-market companies, or those valued between P15 million and P100
million, are also qualified to benefit from BPI Agribusiness Solutions,
along with clients not engaged in agribusiness but are willing to
venture into it.

Existing BPI Preferred or High Value clients engaged in the agri/agra or
related businesses like piggery, poultry, feed mill, slaughter house,
chicken dressing, meat shop, rice mill, corn mill, fisheries, fruit,
vegetable and crop production, and agricultural trading are welcome to
join, according to the bank.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------

BOI strips microenterprises of tax and other incentives

BOI strips microenterprises of tax and other incentives

Published on Wednesday, 06 March 2013 20:37 Written by InterAksyon.com

The Board of Investments (BOI) has removed microenterprises from the
list of businesses that can qualify for tax and other perks under this
year's Investment Priorities Plan (IPP). A microenterprise is a business
that has assets of under P3 million and so is the most feasible that the
poor can put up.

The removal of microenterprises from the list is one of the changes
introduced in the draft 2013 IPP. According to the draft plan, project
cost also has been removed from the list of criteria in bestowing
"pioneer" status to a business venture. A project that qualifies as
"pioneer" gets the most generous tax and non-tax incentives.

The BOI also tweaked several provisions of the specific guidelines for
agriculture, mass housing, energy, transport, infrastructure, motor
vehicles and tourism projects.

During Wednesday's public consultations on the draft 2013 IPP, BOI
Executive Director Lucita P. Reyes said this year's investment blueprint
is a "carryover" of the 2012 version as far as the preferred activities
and mandatory lists are concerned.

Like the 2012 IPP, the 2013 plan includes 13 investment areas in the
preferred activities list, namely, agriculture/agribusiness and fishery;
creative industries/knowledge-based services; shipbuilding; mass
housing; iron and steel; energy; infrastructure and public-private
partnership (PPP) projects; research and development; green projects;
manufacture of motor vehicles; strategic projects; hospital/medical
services; and disaster prevention, mitigation and recovery projects.

The mandatory list, as provided for by various laws, covers the
following industries: industrial tree plantation; exploration, mining,
quarrying and processing of minerals; publication or printing of
books/textbooks; refining, storage, marketing and distribution of
petroleum products; ecological solid waste management; clean water
projects; rehabilitation, self-development and self-reliance of persons
with disability; renewable energy; and tourism.

The IPP also provides incentives to export activities, as well as growth
sectors in the Autonomous Region in Muslim Mindanao.

But the 2013 IPP will no longer accept applications for
microenterprises, as incentives are already available under the barangay
microbusiness enterprise (BMBE) law, according to the BOI.

"In previous years, we included microenterprises since some LGUs [local
government units] were not implementing the BMBE law. We even provided a
special window for microenterprises and waived application fees," Reyes
said.

With regards to applicants for pioneer status, which may enjoy up to
eight years of income-tax holiday (ITH), the 2013 IPP took away the
magnitude of investment as a criterion, Reyes said. The previous IPPs
provided thresholds in project cost for pioneer projects.

Other changes in the 2013 IPP guidelines are:

o Projects with carbon-emission credits have to qualify under any of the
IPP listings but not as export-oriented activities;
o All agriculture projects should secure endorsement from the Department
of Agriculture (DA), and the BOI must also seek opinion or comment from
the DA before approving a project;
o New mass-housing projects outside the National Capital Region (NCR)
and Metro Cebu will be entitled to a three-year ITH, while new and
expansion projects within NCR and Metro Cebu to have a two-year ITH;
o Energy projects to be given one year from date of registration to
submit financial closure;
o For air-transport projects, revenues entitled to ITH will be limited
to passenger and cargo revenues, and Civil Aeronautics Board
certification is required;
o For water-transport projects, minimum lease period increased to five
years;
o For land-transport projects, alternative fuel buses were included;
o Ports, railways and toll ways transferred from infrastructure list to
PPP program list, upon request of the PPP Center for easier monitoring
of projects;
o Motorcycle assemblers must allocate half of the $2-million investment
requirement to manufacturing equipment; and
o No more ITH for hotels and resorts with accommodation facilities in
Boracay Island, Cebu City, Mactan Island and NCR, given the absorptive
capacity of these areas.
Reyes said the manufacturing road maps that the government and the
private sector are jointly developing will be integrated in next year's
IPP. These road maps will be part of a comprehensive national
manufacturing strategy, she said.

The drafting of the 2014 IPP will start as early as August this year,
Reyes said.

Under Executive Order 226, the annual IPP should be submitted to
Malacañang in March, but Reyes said the BOI aims to have the President
Aquino approve the 2014 IPP before year-end so it can be implemented by
January next year.

The BOI last year generated P360.35 billion worth of projects, slightly
lower than the previous year's P368.93 billion.

--
-----------------------------------------------------------
CARLOS ANI - Consultant
Chairman of the Board - SEEDFINANCE Corporation
Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031

Emails: carlosani@gmail.com , carlosani@seedfinance.net
Landline Phone: +63495010127 (PLDT)
Cellphone Numbers: +63926-2778044 (Globe)
+63908-1737072 (Smart)

My Websites:
CARLOSANI.COM - http://www.carlosani.com
SEEDFINANCE Corporation - http://www.seedfinance.net
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com
http://phildevfinance.blogspot.com
FORWARD PHILIPPINES - http://forwardphilippines.wordpress.com/
My News Clippings - http://www.myclipps.posterous.com
Family website - http://www.anifamily.net

Skype name: carlosaniph
----------------------------------------------------------