Interested rural banks in the country can now file their applications to participate in the Consolidation Program for Rural Banks (CPRB), which aims to strengthen rural banks’ operations.
State-deposit insurer Philippine Deposit Insurance Corp. (PDIC) and Bangko Sentral ng Pilipinas (BSP) are now accepting applications for availments under the CPRB until August 25, 2017.
CPRB is a bank-strengthening program specifically designed for rural banks to help enhance their viability and ability to promote financial inclusion and financial stability in their respective communities.
The CPRB, through the Countryside Financial Institutions Enhancement Program, will provide funding assistance for financial advisory services, business process improvement services, and capacity-building support services.
These include training on credit evaluation and administration, audit and internal control, personnel management, accounting/record keeping, treasury, information technology, and governance. Regulatory incentives from the BSP may also be available as part of CPRB’s program support.
It is anticipated that a bank completing the CPRB will have a risk-based capital adequacy ratio (RBCAR) of at least 12 percent and combined unimpaired capital of at least P100 million.
The program welcomes any group of at least five rural banks whose head offices or majority of their branches are located in the same region or area.
Rural banks whose head offices are located in nearby regions may also be included, provided that the program objectives are met.
In a statement on Thursday, the state-deposit insurer said participating rural banks must submit to PDIC three sets of the following documentary requirements:
• Letter of intent; duly accomplished CPRB application form; Board Resolution and Stockholders’ Resolution approving the consolidation; Secretary’s Certificate of Adoption of Board Resolutions containing approval of request for availment of funding support;
• Memorandum of agreement signifying the banks’ commitment to comply with CPRB requirements; memorandum of undertaking indicating their commitment to abide by the program’s terms and conditions;
• Duly executed Confidentiality Agreement and copy of the proponent banks’ latest audited financial statements.
PDIC reiterated that it would only receive complete sets of requirements from interested banks.
“The implementing guidelines of CPRB as well as requirements are contained in PDIC Bulletin No. 2016-03, which is available at the PDIC website, www.pdic.gov.ph,” it stated.
With this, PDIC President Cristina Que Orbeta encouraged rural banks to take advantage of the CPRB, especially in the face of increased competition brought about by the integration of financial markets in the Association of Southeast Asian Nations (Asean) region.
“I trust that rural banks will endeavor to expand their horizons, create the possibilities and opportunities for their business and look at CPRB as a window of opportunity to expedite their decision-making process,” she said.