Thrift Banks: Leading the way towards sustained economic growth

MANILA, Philippines - Through responsive and responsible banking, the Chamber of Thrift Banks (CTB) was able to survive last year’s global economic crisis unscathed. As it celebrates its 36th year through its annual convention, the CTB continues to show unwavering optimism by adopting the theme – Thrift Banks: leading the way towards sustained economic growth.

Taking on the challenge given to the local banking industry by Bangko Sentral ng Pilipinas Governor Amando Tetangco, Jr., the CTB along with its 54-member thrift banks are collectively trying to find ways to provide better services and a more responsive banking system for their niche markets.

And for thrift banks, a significant part of their so-called niche market belongs to the micro-, small-, and medium-scale enterprises or MSMEs, which are also considered as the growth drivers of the economy.

In a recent presscon, HSBC Savings Bank president and CTB Convention Chair Patrick Cheng talked about the current state of the local thrift banking industry. He gave emphasis on the relatively robust growth of the industry last year in spite of the ongoing economic crisis. With a 3 percent increase in the number of branches, this allowed local thrift banks to further expand their reach especially in Luzon.

Aside from that, Cheng also shared that there was a double-digit increase in terms of deposit from ’08 to ’09 at 12 percent. Other notable accomplishments of the local thrift banking industry last year were the passage of the Free Patent Bill which it supported and which allows homeowners to enjoy property rights; liberalization of BSP Rediscounting Guidelines; support for the new PDIC Charter which increased deposit coverage without increasing the insurance premiums paid by banks.

Having met most of their goals for the previous year, PSBank president and two-time CTB president Pascual Garcia III is keen on pursuing the CTB’s commitment to aggressively mobilize savings, provide low and medium cost housing and auto loans, and promote countryside development by providing financing in non-urban areas.

 While 2009 has been all about coping with the current economic challenges and implementing change, the CTB sees 2010 as the year to start taking more chances and seizing opportunities making this year’s convention a favorable venue to take up all of these goals. “(The convention) is an opportunity for us to bring out on the table major initiatives that are appropriate for discussion this year and we’re also going to focus on the current political exercise. This is also why we expect a good turnout because of the interest on the candidates,” shares Garcia.

Aside from the invited “presidentiables” who will take part in the economic discussion, the CTB Convention which will be happening today at the Dusit Thani Manila in Makati City will also have BSP Governor Tetangco as its keynote speaker and inductor of this year’s CTB officers and board of trustees led by Garcia.  

“Coming from the crisis there were some expectations of recession but we’ve always been optimistic that we will do just fine and in 2009 we were able to escape the recession. There’s much to be thankful for,” says Garcia. He also shares a particular effort that they did in 2009 where the CTB was able to keep its lending windows open, “We assured our clients that we’ll be there to support their requirements. I think this is what helped our economy stay on key as opposed to other countries. In 2010 we are hopeful that this is going to be a fruitful year.”

 This is why Garcia and the rest of the CTB are going to make serious efforts in order to keep its strong hold of its niche markets from SMEs to auto and housing loans – which will all be revealed today at the convention. “By and large the thrift banks were able to hold its own on SMEs which makes us different from other banks because we provide more intensive services and in 2010 we hope that the SMEs will have more demand for our services. Also, January sales in the automotive industry grew by 32 percent, we can also expect a growth in tourism which is why we are moving aggressively to support whatever credit facilities our clients might require,” shares Garcia.

With regard to possible growth in housing loans, which is a major niche market of the thrift banking industry, BPI Family Savings Bank President and member of the CTB Board of Trustees Alfonso Salcedo, Jr. shares, “We’re working at a 10 to 15 percent growth in the housing sector and we don’t see any asset bubble.” Cheng supports this by saying that the local thrift banking industry wants to be more aggressive on mortgage loans.  

CTB members, the media, and other invited guests certainly have a lot to look forward to at today’s CTB Convention – from a rundown of the CTB’s many achievements in the past year; the induction of its new set of officers, and an interesting economic discussion with this year’s candidates for the presidential election everything seems to be set for a day of progressive thinking for the benefit of the nation’s economy this 2010.