Another RB joins MABS program

COTABATO CITY – The Rural Bank of Cotabato (RBC) signed an agreement recently to participate in the United States Agency for International Development (USAID)-supported Rural Bankers Association of the Philippines - Microenterprise Access to Banking Services (RBAP-MABS) Program.

USAID Deputy Mission Director Frank Donovan, Deputy Presidential Assistant for Mindanao Virgilio Leyretana Sr., Cotabato City Mayor Muslimin Sema, and US State Department Office Director Eunice Reddick witnessed the agreement signing.

Donavan stressed that the MABS program complements efforts of the national government of the Philippines, through the "Mindanao Natin" program to bring peace to mindanao by addressing poverty, one of the root causes of conflict.

"The introduction of the MABS technology to the Rural Bank of Cotabato, and to other Rural Banks in the ARMM, will increase the availability of credit to microenterprises. This will, in turn, enhance business activity and result in more jobs and increased productivity in the communities served by the participating banks," he said.

RBC is the only bank in Cotabato City serving the microenterprise sector. Among the bank’s current depositors and borrowers are members of religious minority and ethnic groups. In signing up with the RBAP-MABS Program, RBC will receive training and technical assistance aimed at strengthening bank operations an enhancing the ability to profitably provide loans and deposit services to microentrepeneurs in Cotabato City and the surrounding communities.

The signing of the Memorandum of Agreement signifies the commitment of RBC

The MABS program is a USAID-fincned project jointly implemented by the RBAP with oversight provided by the Office of the President through the Mindanao Economic Development Council (MEDCo).

some 117 rural bank units have received technical assistance from the program since 1998; these banks have collectively disbursed more than 300,000 microloans to over 100,000 microentrepeneurs totaling more than PhP3 billion. The participating banks ahve also provided deposit services to more than 524,000 microdepositors.