The MABS program provides technical assistance and training to assist rural banks to develop the capability to profitably provide services to microenterprises. It is jointly implemented by the Mindanao Economic Development Council (MEDCo) and the Rural Bankers Association of the Philippines (RBAP), with support from the United States Agency for International Development (USAID).
"We want to show the world that Muslims in Mindanao can effectively run a bank and with additional training from MABS we hope to have a more successful banking system," said rural bank chairman Datu Ibrahim Paglas III.
Paglas said that one of the first things that investors look for is the presence of a bank in an area, even before inquiring about the peace and order situation.
"Fifteen years ago, our municipality was called a war zone because our area was very troubled, but once investments started coming in, peace was achieved," said Paglas. "We cannot improve things through the barrel of a gun, but we found we can solve many problems with economic development."
"This occasion marks an important step in MABS’ special efforts to make financial services available to microenterprises in Maguindanao and other areas in the Autonomous Region in Muslim Mindanao that have been affected by years of armed conflict," said Robert Barnes, USAID-Philippines Economic Growth Advisor, Office of Economic Development and Governance.
The Rural Bank of Datu Paglas (RBDP) was established in 1998 and provides banking services to residents of Datu Paglas municipality and the province of Maguindanao.
Under the agreement, MABS will provide training to the bank aimed at strengthening bank operations as well as enhancing its ability to develop profitable loan and savings products targeted at microenterprises in the area.
According to Barnes, the MABS program has a special focus on the ARMM and other areas of Mindanao where long-running conflict has prevented many promising microentrepreneurs from gaining access to formal sources of credit.