The Development Bank of the Philippines (DBP) wants to increase its alliance with rural banks if it is to implement more development projects in the countryside.
DBP president and chief executive officer Reynaldo G. cited the inherent strengths of rural banks particularly given their wide branch network and evolving technologies in the provision of loans to entrepreneurs in the countryside.
“We believe that rural banks can help us reach out to more communities and more Filipinos residing in the provinces. Together, we can be more relevant and responsive in building an entrepreneurial base in the countryside,” he said, during the recent Central Luzon Rural Bankers’ Management Conference.
He invited rural banks to assist DBP in identifying projects and eligible borrowers, and to avail of DBP’s wholesale financing windows, adding that DBP has P46 billion in available funds to finance its various priority development thrusts.
“Being a conduit of long-term funds has allowed us to fund such key initiatives in the infrastructure and logistics development, social services, environment, and enterprise development sectors,” the bank president added.
DBP is likewise exploring the viability of a long-term facility that would cater to proposals for a consolidated funding program from rural banks.
As an example, a rural bank can propose a financing scheme for cassava suppliers, consolidating several small farmers under a contract growing program, while establishing a feed mill in the same area.
DBP’s strengthened partnership with rural banks is also attuned to efforts to increase lending to microenterprises in the country’s poorest municipalities, particularly in 288 towns and 21 priority provinces with the lowest saturation rates.
“We need to cover more ground, and do a lot of advocacy work in areas where there are no livelihood opportunities, no credit access. But if we are able to penetrate these areas, we can make a lot of difference in our development work,” David said.