Rural banks open own academy

The rural bankers will be establishing an academy for community (rural) banking and microfinance (ACB 7 M) in the second semester of 2006.

It will replace the Rural Bankers Research and Development Foundation Inc. (RBRDFI), and it will be erected beside the head office of the Rural Bankers Association of the Philippines (RBAP) in Intramuros.

According to RBAP president William Hotchkiss, the academy is designed to ensure the professionalism and modernization of rural banks in the face of globalization. It will likewise ensure the continuity of the next generation of modern rural bankers.

The RBRDFI has been limited to regulatory compliance issues and other basic logistical requirements of rural banks. It has been tapping the services of lecturers not directly involved in rural banking.

At the other hand, the banking environment has changed significantly with the entry of technological advances as well as the complicated banking requirements of the public.

"The academy will be a degree-granting entity," Hotchkiss said. Specialized courses in rural banking, microfinance, foreign currency trading and transaction, and new banking products will be offered.

RBAP will release initial capital of P2.5 million for the academy, as well as solicit donor assistance.

RBAP initiated the academy to bring rural banks to a higher plain other than the traditional deposit-taking and lending activities. The financing needs of the public has become complex, and with the technological advancements, the system must make the necessary adjustments.

The growing demand for easy access to remittances from overseas Filipino workers (OFW), e-banking, and the more recent approval of the Bangko Sentral ng Pilipinas (BSP) for rural banks to establish foreign currency deposit units (FCDUs) also needs to be adressed.

"We must rise from our parochial state, and adopt our community to the regional and global character of the banking community," the RBAP president stressed. – Ted P. Torres