RBRDFI trains Luzon rural bankers on Risk Management & Financial Indicator Analysis

September 25, 2010 By Leave a Comment
In partnership with MicroFinanza Rating, the Rural Bankers Association of the Philippines (RBAP), through the Rural Bankers Research and Development Foundation, Inc. (RBRDFI), conducted its first leg of the 2-day Risk Management and Financial Indicator Analysis workshop on September 23-24 for Luzon Rural Bankers and representatives of the Philippine Rating Services Corporation (PhilRatings).
The workshop introduced both theoretical and practical knowledge to assist rural banks in developing comprehensive risk management practices, policies, and strategies. It equipped banks with necessary tools for the evaluation and monitoring of their financial and operational performance on a bank-wide basis.
Focusing on key financial ratios and an overview of risk management, the training placed due emphasis on Liquidity and Interest Rate Risks. Learning was reinforced through exercises and case studies. The participants were trained on doing GAP Analysis and liquidity ratio computations by letting them read and analyze sample cases of financial statements. They were also given an overview of interest rate risks using Asset-Liability Management (ALM).
The activity was facilitated by MicroFinanza Rating’s Founding Partner and Ratings Director, Mr. Aldo Moauro, and co-facilitated by Mr. Marco Boa, the agency’s Regional Manager for Asia.
The Risk Management & Financial Indicator Analysis Workshop was also offered to rural banks in the Visayas on September 27-28 and to Mindanao rural banks on September 30 – October 1.
MicroFinanza Rating is a private and independent rating agency based in Milan, Italy specializing in microfinance. As a market leader in specialized ratings, MicroFinanza Rating has performed more than 500 ratings and assessments in 60 countries in Latin America, Africa, Central Asia, Eastern Europe and the Balkans, Russia, the Caucasus, South-East Asia and the Middle East/North Africa region. MicroFinanza Rating has 6 offices worldwide, with its regional office for Southeast Asia based in Manila.

In partnership with MicroFinanza Rating, the Rural Bankers Association of the Philippines (RBAP), through the Rural Bankers Research and Development Foundation, Inc. (RBRDFI), conducted its first leg of the 2-day Risk Management and Financial Indicator Analysis workshop on September 23-24 for Luzon Rural Bankers and representatives of the Philippine Rating Services Corporation (PhilRatings).

The workshop introduced both theoretical and practical knowledge to assist rural banks in developing comprehensive risk management practices, policies, and strategies. It equipped banks with necessary tools for the evaluation and monitoring of their financial and operational performance on a bank-wide basis.

Focusing on key financial ratios and an overview of risk management, the training placed due emphasis on Liquidity and Interest Rate Risks. Learning was reinforced through exercises and case studies. The participants were trained on doing GAP Analysis and liquidity ratio computations by letting them read and analyze sample cases of financial statements. They were also given an overview of interest rate risks using Asset-Liability Management (ALM).

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Social Performance Management introduced to RBAP-MABS National Roundtable Conference

June 21, 2010 By Leave a Comment

Micol PistelliMicol Pistelli of MIX introduced the concept of social performance to the crowd of rural bankers at the 2010 RBAP-MABS National Roundtable Conference held on 2-3 June.  Social Performance Management (SPM) involves the definition of desired social improvement metrics and measurement of the results against desired performance.

Ms. Pistelli makes a case for the inclusion of social performance as a key measurement for rural banks along with their financial performance measurement.  SPM will bring greater social responsibility to the rural banking sector, provide access to more donors and investors, and improve the industry’s overall transparency.  By the end of 2009, 208 Microfinance Institution’s (MFIs) had reported on social performance indicators to MIX, including five from the Philippines.  She strongly encouraged MABS participating banks to report their social performance indicators to MIX (see the end of this article for reporting details).

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Rural banks and microfinance rating agencies share the benefits and experiences of ratings

April 9, 2010 By Leave a Comment
RBAP-MABS, with the support of USAID/Philippines and the Rural Bankers Research and Development Foundation Inc. (RBRDFI), held a workshop entitled “Benefits and Experiences of Rural and Microfinance-Oriented Banks on Ratings” on April 8 at the Pan Pacific Hotel in Manila. Twenty-four bankers from 16 rural banks participated in the workshop held in collaboration with MICRA Philippines, MicroFinanza Rating, and Planet Rating.
The workshop started off with presentations from the three microfinance institution rating agencies (MIRAs), which provided the participants with a complete picture of MIRAs operating in the Philippines. This was followed by a discussion by the Bangko Sentral ng Pilipinas (BSP) on Circular No. 685: Rules and Regulations for the Recognition of Microfinance Institution Rating Agencies issued on April 7. MABS participating banks – First Macro Bank, GM Bank, and Green Bank – ended the morning session by sharing their experiences on actual rating and assessment.
The afternoon session was filled with hands-on exercises on how ratings are conducted. Each agency presented an actual case study on one component used in their evaluation. The participants played the role of raters and conducted their own assessment based on the given case studies and criteria. For each of the three case studies, the assigned rating agencies presented the actual rating that was given and explained how this was determined. Interestingly, the participants turned out to be relatively stricter than the rating agencies in evaluating microfinance institutions. Thus, through an open forum, the bankers and the representatives of rating agencies thoroughly discussed how ratings are given based on specific bank conditions, trends, and other socio-economic factors.

RBAP-MABS, with the support of USAID/Philippines and the Rural Bankers Research and Development Foundation Inc. (RBRDFI), held a workshop entitled “Benefits and Experiences of Rural and Microfinance-Oriented Banks on Ratings” on April 8 at the Pan Pacific Hotel in Manila. Twenty-four bankers from 16 rural banks participated in the workshop held in collaboration with MICRA Philippines, MicroFinanza Rating, and Planet Rating.

The workshop started off with presentations from the three microfinance institution rating agencies (MIRAs), which provided the participants with a complete picture of MIRAs operating in the Philippines. This was followed by a discussion by the Bangko Sentral ng Pilipinas (BSP) on Circular No. 685: Rules and Regulations for the Recognition of Microfinance Institution Rating Agencies issued on April 7. MABS participating banks – First Macro Bank, GM Bank, and Green Bank – ended the morning session by sharing their experiences on actual rating and assessment.

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