The document discusses the process for banks to establish Microbanking Offices (MBOs) in the Philippines. It defines MBOs as Off-Banking Offices (OBOs) that primarily serve microfinance clients and overseas Filipinos. MBOs can perform limited transactional activities like accepting deposits, disbursing loans, and selling microinsurance. The process involves submitting a letter of intent and business plan to regulators for approval. The business plan must contain strategic and operational details on how the MBO will serve microfinance clients. Regulators will evaluate requests based on the bank's financial condition, management quality, and ability to comply with requirements for MBO operations.

1. Market Expansion through Microfinance-Banking Offices (MBOs)September 12-13, 2011RBAP Conference Room, RBAP BuildingIntramuros, Manila

2. OutlinePlanning for SuccessMarket ResearchModeling an MBOUsing MicroPinoy for Financial ProjectionsPiloting MBO operationCompleting the BSP requirementsOrganizing the MBO

3. MBO Expansion Steps

4. What is an OBO?Refer to any permanent office or place of business in the Philippines other than the head office, branch or extension office which engages in anyor all of the following non-transactional banking-related activities.Market loans, deposits and other bank products and;

5. Accept loan applications and conduct preliminary credit evaluation as well as perform credit admin support services;

6. Host on-site automated teller machines (ATMs)

7. Perform customer care servicesWhat is an MBO?Refer to an OBO that primarily caters to the banking needs and services of microfinance clients and overseas Filipinos (OFs) and their beneficiaries. Microfinance clients are micro-credit borrowers and micro-depositors.In addition to the non-transactional banking related activities and services allowable for regular OBOs, MBOs may also engage in any or all of the following limited transactional banking activities and services:

8. Transactional Banking Activities and ServicesAccept micro-deposits including initial deposits and service withdrawals thereof;

9. Accept check deposits of microfinance clients for collection and credit deposit accounts;

10. Disburse/release proceeds of micro-loans and collect loan amortization and related charges;

11. Present, market, sell and service microinsurance products in accordance with existing regulations;

12. Receive/pay out funds in connection with authorized remittance transactions;