BAP, rural banks to launch credit info sharing bureau

The Bankers Association of the Philippines (BAP) and the Rural Bankers Association of the Philippines (RBAP) will launch a joint program for credit information sharing.

The BAP Credit Bureau, which handles all the credit information of expanded commercial and commercial banks, will start processing information coming from the more than 724 rural banks and its 1,085 offices nationwide.

In turn, the rural banks (RBs) will also have access to the credit information for both the commercial and rural sectors.

RBAP president Daniel Arcenas informed reporters that the BAP board approved the joint undertaking yesterday although several details have still to be ironed out, including the charges for access and enrollment into the credit bureau information.

"It is mutually beneficial for both associations," Arcenas said.

Meanwhile, the RBAP president revealed they are reformatting their website to introduce a window to publish the ROPOA (real and otherwise properties owned and acquired) of its member banks.

Unofficially, the rural banking system’s ROPOA ranges from P7 to P8 billion at end- 2003.

Arcenas explained that by making public the bad assets, it could serve as a marketing tool for its members. "Publication in a daily newspaper is also another option."

Bangko Sentral ng Pilipinas (BSP) assistant governor Nestor A. Espenilla Jr. said that the national government also expressed concern on the credit bureau issue.

"We will soon provide a credit bureau service for thrift and rural banks. This is a system where you can check the credit standing of small and medium enterprises from a masterlist through the Internet so that credit application will be quick and hassle-free. We will do this to help you (rural banks) make financing more available to our SMEs,"Espenilla said for the absent state leader, Espenilla said. – Ted Torres