Outlook And Initiative for Rural Banks admidst the Global Financial Crisis

2009 RBAP-MABS NATIONAL ROUNDTABLE CONFERENCE MAY 12-13, 2009 HYATT HOTEL AND CASINO MANILA Outlook and Initiatives for Rural Banks Amidst the Global Financial Crisis Joseph Omar Andaya President, Green Bank of Caraga

Overview of the Crisis
The Global Financial Turmoil
A once-in-a-century event
Contraction of leading economies
The Philippine Situation
Largely spared for now but will feel effects later on

Sectors Affected
i.Export Industry
- slowdown in foreign demand
leading to collapse of orders
ii. Overseas Foreign Workers Remittance
- reduction in global manufacturing
and services results to net outflow
of migration from host countries
iii. Tourism Industry

Implications for Rural Banks
i. Deposit Generation
- Reduction of deposits
ii. Lending Operations
- Depressed business activity will
result to smaller appetite for
credit
iii. Social Unrest and Rising Criminality

Lending Operations
CI / BI
Cash Flow Method of Lending
iii. Varied Loan Products for different market segments
- Micro Agricultural
- Micro Housing
- Loans for those former Micro-enterprise
customers who have already ‘graduated’

iv. Establish delivery channels in underserved
geographic areas
iiv. Small Claims Court

Deposits
Come up with new Savings Products
ii. Establish delivery channels in underserved areas to acquire more customers
iii. Tap other sources of funds as safety nets in case of panic withdrawals
- loans / credit lines from institutions like
the Land Bank and the BSP

Other Financial Products
i. Micro-insurance
- lessen the impact of shocks on family
income
- bundled with deposit and loan products
would decrease the volatility of deposits
and would ensure the repayment of loans

THANK YOU

Outlook And Initiative for Rural Banks admidst the Global Financial Crisis

by MABSIV on May 18, 2009

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Outlook And Initiative for Rural Banks admidst the Global Financial Crisis — Presentation Transcript