Eagle Revisions

 Proposed Changes in the   EAGLE Scoring System  Mely Agabin  MABS  2010 RBAP‐MABS Na.onal Roundtable Conference  Hya= Hotel and Casino, Manila  June 2‐3, 2010 

• The EAGLE indicators were last reviewed and adjusted in 2005. • Changes to Philippine microfinance industry include: o Entry of more players o Stronger competition o Inflation o Broad range of experience and years of operation of rural banks

BEFORE AFTER BSP Camels Ratings Requirement 3.0 3.5 Total capital assets/Total BSP-prescribed risk-based CAR Formula assets – (cash, COCi,due fr method of computation in BSP & banks) Form 11-X162 CAR % Requirement 12% 12%

Minimum number of active borrowers by age BEFORE AFTER New (4 years & below) 1,000 1,000 Young (> 4 to 8 years) 1,000 1,000 Mature (> 8 years) 1,000 2,000

Efficiency BEFORE AFTER Cost/Active Borrower Individual = >P1500 Indicator Dropped Group = >P500 Weight for Loan Officer Productivity (Ind.) 5% 10% Weight for Loan Officer Productivity (Group) 5% 10% Weight for Efficiency 30% 30%

Growth BEFORE AFTER Active MF Loan Active MF Loan Borrowers Portfolio Borrowers Portfolio New (4 years or less) 20% 20% 15% 15% Young (> 4 to 8 years) 20% 20% 10% 10% Mature (> 8 years) 20% 20% 10% 10%

Earnings BEFORE AFTER Annual Net 35% or more 20% Microfinance Returns

Asset Quality and Liability Structure No Change

Within 2010 after approval by the MABS Steering Committee THANK YOU!

Eagle Revisions

by MABSIV on Jun 09, 2010

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Eagle Revisions — Presentation Transcript