COMMERCIAL BANKS OFFER

CREDIT BUREAU SERVICES TO

RURAL BANKS
SUMMARY
SUMMARY
 Because of the absence of national credit
information system as mandated by the Credit
Information System Act (CISA), rural banks are
encouraged to avail of the credit information
services offered by the Bankers Association of the
Philippines – Credit Bureau Inc. (BAP-CB). BAP-
CB officer Manuel Batallones offered its
information system to support rural banks’ credit
information needs. *

 * Source:
http://www.philstar.com/Article.aspx?articleId=646916&publicationSubCategoryId=74
PROBLEM
PROBLEM
 Even CISA was already passed into the law in
October 2008 and implementing rules and
regulations (IRR) were finalized the following
year, it still remains in paper as the Securities
and Exchange Commission (SEC), has not taken
any action since the approval of the IRR.
 Without the information system to support rural
banks, the probability of having unpaid loans,
loans under litigation, bouncing checks, and etc.
is very high and becomes common in rural banks
which will result in over indebtedness and it is
harmful to microfinance clients and threat to the
budget.
SOLUTION
SOLUTION
 Instead of waiting that SEC will take any action
regarding the national credit information system
by CISA, the rural banks or the higher authority
must provide a small information system for each
rural banks. Even though small scale information
system is less efficient than the national credit
information system, it will help the rural banks
lessen their debts and unpaid loans of clients by
screening series of data to verify their clients’
identity and also verify that they are capable of
paying the loans.
CONCLUSION
CONCLUSION
 Because of the current situation of our rural banks
today, many people does not trust these banks
anymore. Most people find it safer to put their money
on commercial and enterprise banks rather than
putting them in rural banks.
 And because most people do that, some rural banks
have already been bankrupt and closed because of
clients are no more.
 That’s why CISA have offered its national credit
information system to help rural banks continue their
jobs and seek for more opportunity
 The problem is that SEC is still not doing some course
of action regarding the CISA’s information system.
END
Created by: Franz Phillip G. Pablo – CNE82
Asia Pacific College