USAID to help thrift banks improve credit services

MANILA, Philippines - The Chamber of Thrift Banks (CTB) signed yesterday a memorandum of cooperation with the US Agency for International Development (USAID) to improve access to credit by smaller banks particularly in the property sector.

Under the Property Rights As a Credit Enhancement Mechanism (PRCEM), more people will gain access to credit with secure collateral acceptable to banks and financial institutions.

The objective is to improve credit to land titling beneficiaries and establish cooperative activities among financial institutions, local government units (LGUs), the Department of Environment and Natural Resources (DENR) and other stakeholders.

This cooperation will specifically fall under USAID’s Advancing Philippine Competitiveness Program, which is intended to contribute to higher growth through better provision of infrastructure, increased competitiveness of key industries, and increased access to credit

The project will also involve the Foundation for Economic Freedom Inc. (FEFI).

Under the PRCEM project, USAID will assist banks in converting their tax declarations into titled collateral through residential free patent (RFP).

It will also allow USAID to assist banks in marketing services to RFP beneficiaries, set up titling services and set up partnerships.

The possible activities of the partnership include trainings and workshop on the promotion of access to credit; conversion of tax declarations to RFP; titling process (including land investigation; and advocacy and dissemination of information on access to credit.

With PRCEM, the banks will increase and widen client base to include those with RFP and possible applicants for RFP titling; and increase knowledge/expertise of banks on access to accredit and public titling.