1) Bangko Kabayan experienced a bank run in 1978 due to mismanagement, fraud, and high delinquency rates which caused a loss of public confidence. 2) In response, Bangko Kabayan underwent reorganization, hired professionals, launched a deposit campaign, and obtained an emergency loan to stabilize the bank. 3) Through reforms like improved processes, transparency, and high liquidity policies, Bangko Kabayan was able to survive subsequent crises caused by other bank closures and regain public trust.

1. Life after a Bank Run: The Bangko Kabayan Experience 2009 RBAP-MABS National Roundtable Conference May 12-13, 2009 Hyatt Hotel and Casino Manila Atty. Francis Ganzon President, Bangko Kabayan Bangko Kabayan Inc.

2. The Panic of 1978 : Mismanagement and Fraud Bangko Kabayan Inc.

3. Causes : Loose management Internal Fraud High delinquency – illiquidity    Bangko Kabayan Inc.

4. Effect : Loss of Public Confidence Panic withdrawals   Bangko Kabayan Inc.

5. Steps Taken : Reorganization Professionalization   Deposit Campaign  Bangko Kabayan Inc.

6. Communication Program Emergency Loan - BSP   Aggressive Collection of Past Due  Disposition of Acquired Assets  Bangko Kabayan Inc.

7. Reforms : Recruitment and Hiring based on Merit Tight Internal Control System   Better Process and Documentation in REM Loans  Deposits vs. Rediscounting as Source of Funds for loans  Bangko Kabayan Inc.

8. Growth at the Expense of Liquidity 1993: Bangko Kabayan Inc.

9. Reforms : Adoption of Higher Liquidity Level Policy Improve Treasury Functions   Bangko Kabayan Inc.

10. 1996: Closure of Other Banks Bangko Kabayan Inc.

11. Strategies : High visibility of CEO Transparency and Good Relations – Staff and Clients   Increase Liquidity – control loan releases, draw on credit lines  Bangko Kabayan Inc.

12. Maintaining Unity in the Organization Strength of Faith, Vision and Mission   Stockholder Support – personal funds and guarantees  Bangko Kabayan Inc.

13. 2001: Personal Tragedy Bangko Kabayan Inc.

14. Professional organization prepared to handle crisis Morale support and offers for help from fellow rural bankers   Support from understanding regulators  Bangko Kabayan Inc.

15. Fruits of years of relationship-building, transparency and good governance! Bangko Kabayan Inc.

16. Legacy Bank Closures - an Industry Crisis Bangko Kabayan Inc.

17. Seeking a Common Solution – putting up a united front Bangko Kabayan Inc.

18. Re-education of Public is Key Bangko Kabayan Inc.

26. Take care of all stakeholders – and they will take care of you in times of need! Bangko Kabayan Inc.