Rural bankers gradually embracing microfinance

MANILA, Philippines - The Rural Bankers Association of the Philippines (RBAP) is gradually embracing microfinance as one of the prime movers of growth for its members, a top RBAP official said.

“Banks have been able to provide viable microfinance services in the countryside, as well as pioneer various innovations in terms of product and service deliveries,” RBAP president Edward Leandro Z. Garcia Jr. said.

“As we move forward, we must identify emerging issues (in microfinance industry) and address them accordingly.”

RBAP will hold its 55th charter anniversary symposium at the Manila Hotel on Nov. 19-20. With the theme “60 years of Rural Banking,” several industry luminaries will grace the event, as RBAP invited speakers and resource persons representing regulators and policy-makers, foreign-funded development projects, local and foreign fund sources and technical service providers.

The symposium will also highlight the establishment of rural banking system as ready access credit facilities in rural communities at reasonable terms, and as a support to developmental projects.

To reflect on 60 years of relationships-building with clients, RBAP will be raising the quality of life especially of the traditionally unserved, and the transformation of the economic landscape in the countryside to become an important engine of growth.

“Our industry has definitely gone a long way. I can’t believe it has already been six decades since the birth of the industry with the enactment of Republic Act 720,” said Garcia. “Rural banks have always been important and economic and financial players in countryside development. After World War II, rural banks have made positive contributions on our rural economic development and financial inclusion.”

RBAP members will also update on the progress, opportunities and challenges encountered by the rural banks. During this time, the participants will to interact and reflect on industry’s pressing concerns and how they can address these concerns as RBAP moves forward.