Manila, Philippines - The new leadership of the Rural Bankers Association of the Philippines (RBAP) expressed support for the congressional initiative for the entry of foreign investors in the the rural banking industry.
Newly-inducted RBAP president Edward Leandro Garcia Jr. said the legislature would strengthen rural banks.
“To strengthen our capital position we intend to further engage our partners in Congress and thank them in advance for their support in allowing foreign equity in rural banks,” Garcia said.
Garcia added that “allowing foreign participation in rural banks can only be a boost to the rural banking industry. It will allow for the transfer of technology and human resource know-how, hastening the modernization efforts of all rural banks nationwide.”
“We will not, however, limit our source of equity in this, as we find different ways for the government and the private sector alike to invest in rural banks,” he said.
In House Bill 5360, non-Filipinos may buy and own up to 40 percent of a rural bank’s authorized capital stock.
Garcia appealed to RBAP members for continued cooperation.
“Fellow rural bankers, exciting times await our industry. I know that it would not be easy or simple, but I also know that we have taken on the duty and obligation as rural bankers to help the underprivileged, and together we again have a chance to make a difference. I know big decisions may be needed to make the necessary changes. I know that we have a lot of work to do, and I know it cannot be done overnight, nor in the next six months, or in perhaps the next 60 months. But (in the words of JFK) let us begin,” he said.
Meanwhile, Philippine Deposit Insurance Corp. (PDIC) president Valentin Araneta said they are just awaiting for the go signal of the Bangko Sentral ng Pilipinas (BSP) for the Strengthening Program for Rural Banks Plus (SPRB).
It’s with the BSP governor for his signature. I think it will be signed any time this week,” Araneta said.
BSP Deputy Governor Nestor Espenilla Jr., for his part, echoed Araneta’s optimism on the approval of the SPRB Plus.
“Hopefully by next week the full guidelines will be issued. Actually, it was already approved in principle sometime ago. We just cleared up the MOA. It is now for signing by PDIC and BSP,” Espenilla said.