 |
 |
|
|
       |
ACCEPTANCE SPEECH |
| (By: Gen. William K. Hotchkiss III (Ret.), delivered on the occasion of the Induction of Directors and Officers of the Rural Bankers Association of the Philippines June 30, 2005) |
|
Fellow rural bankers, guests, ladies and gentlemen, good evening!
At the outset, let me take this opportunity to extend my gratitude for your unwavering support to our association in its quest for a progressive rural banking industry. In twelve months, my battle cry will be the call for unity within the sector and continuity of our on-going initiatives to gain maximum benefits for our sector. Our association is made up of diverse ideologies and principles, which hamper our call for unity. I do not intend to standardize these ideologies but I would like to steer these ideas towards a common goal. We may not be able to iron-out political frictions but we can lead our members to carry on similar objectives – to create an industry characterized by sound governance, a strong compliance system, and client-oriented service to augment profitability and stability of the sector. To paraphrase the poet, no rural bank is an island, entire of itself. We may not recognize it but our roles are intertwined and complement each other. Although we can not hide the fact that we are business competitors in this industry, yet we can be united not just socially but professionally as well in providing quality financial services to the countryside. Our common bond is to spur socio-economic progress and uplift the bottom of the economic pyramid’s quality of life. Admittedly, we experienced major positive developments in the rural banking industry but concomitantly lost a handful of our members due to closure. RBAP is firm in its obligation to safeguard its members from negative incidents that may impede growth. The concerted efforts of our past presidents, directors and officers significantly created a rural banking atmosphere characterized as professional, competitive and progressive both locally and on a global perspective. Our outgoing president, Mr. Senen Glorioso has steered RBAP to new heights. From a statistical standpoint, the industry achieved high gains from 2003 to 2004. Deposits grew by 13.66% from p62 billion in 2003 to p70 billion in 2004. Loans disbursed inched up by 14% from p56 billion in 2003 to p64 billion in 2004 and net income grew by 15% from p1.47 billion in 2003 to p1.69 billion in 2004. Micro, small and medium financing also emerged as profitable and sustainable endeavor. Under our RBAP-MABS project, loan portfolio balance totaled to 528 million pesos to 192,397 borrowers and created 260,199 micro depositors. For the whole microfinance business of the RB sector, on June 2004 total outstanding loan amounted to php 3.068 billion benefiting a total of 508, 701 microborrowers. This upward trend can be attributed to the current programs aimed at amplifying the role of the rural banking industry in the government’s development agenda. The momentum left by Mr. Glorioso is very challenging indeed and I bind myself to carry on. To do so, I will continue to uphold the RBAP 2010 agenda (5-year strategic plan) with three directional objectives. First, I will further enhance the management of RBAP training program as my linchpin project taking a step or two closer to institutionalizing our own academy for banking in the countryside. This objective will entail us to seriously take the challenge of professionalizing the rural banking sector across all levels to include the rank-and-file, middle management and executive leaders. Currently, we offer 19 training modules to cover both technical skills and soft management skills, categorized further as: 1) on value alignment, 2) on asset management, and 3) new banking products and services. We will further strengthen our alliance with training partners such as the Bangko Sentral ng Pilipinas, Philippine Deposit Insurance Systems, Land Bank of the Philippines, Ateneo de Manila – Graduate School, other academic institutions, commercial banks and other private organizations. Our MOA with Ateneo de Manila – Graduate School of Business, hopefully will shed light on our path towards providing Masters in Business Administration at the grassroots level. It is about time that the blue eagle step down from the stratosphere and put its talons on the ground. Secondly, we will heap on our drive to improve the ICT capability of our association and the rural banks. In the corporate world, and even in rural communities, technological advancement sets the tone of business operations. With interconnectivity businesses are able to keep up with globalization. Similar to survival of the fittest, we either link up to become successful or our business will die a natural death. With this in mind, we will continue to push for information technology as a viable tool for operational efficiency and productivity, with such cost-effective services like rb2000 software and RBAP text-a-payment. Most of the reportorial requirements of BSP, PDIC and AMLC now require a technological platform for its implementation. We have conducted a nationwide roll-out of general ledger seminar-workshop and currently we are implementing the one-day AMLC reporting procedures seminar-workshop in cooperation with the anti-money laundering council. However, these knowledge or information that we wish to impart may just dissipate if we don’t invest on ICT and put up a support mechanism to these compliance requirements. In the 5-year strategic development plan of RBAP, we have committed to establish a one-stop help desk in RBAP office so that whatever data is needed by the rural banks and clients will be readily available both in the website and through phone. Right now, we have an agreement with Banco de Oro for its BDO remit cash pick-up transactions which also requires technical hardware and software support. Third, RBAP represents a stable network of the 736 rural banks under its umbrella strategically located nationwide. And for the information of everyone, our size and our reach is the source of our strength. With a unified and strong position on policy issues, economic interventions and even political and social concerns, our then small but potent voice will become an essential factor that policy decision-makers will have to consider. Our advocacies will include the proliferation of the principles of good corporate governance – fairness, accountability and transparency – as essential tools for sustainability and business success. For our microfinance advocacy, we aim to strengthen the capabilities of our member banks to do real and relevant countryside financial services. The rural banking industry is really an indispensable partner of the government in its micro, small and medium finance agenda with their strategic location and association with the local communities. We serve those who have limited access to banking service – the small savers, microentrepreneurs, farmers and fisherfolks thus ushering them into the formal financial system. Such a noble and financially sustainable deed makes us more than ever the financial backbone of countryside growth. As we do business and gain economic progress, we need to countercheck the environmental impact of our activities. According to a World Bank report on the Philippine environment for 2004, the Philippines is losing Php 111 billion annually due to continuous environmental degradation. We are active promoters of equal distribution of and sustainable economic development. Yet, for sustainability, we miss the fact that we also need to care for our environment to ensure that it will benefit future generations. The rural banks can make a difference – we can lead the country to make an ecological u-turn from continuous degradation towards creating a healthy and viable environment. In the May 30 edition of time magazine, 30 major private banks have signed up with the equator principles. This is a new banking industry standard in the US that promotes responsible environmental stewardship and socially responsible development. At this point, let me quote Mr. Nimal Fernando of Asian Development Bank in his speech during our annual national convention, he said, “best practice is not adequate. We need to think of the next practice to get an edge over others.” This statement challenges the rural bankers to think-out-of-the-box, identify current trends and project future conditions of the market. To become competitive, knowing what the market requires goes with bracing the industry with needed knowledge and skills. Next to being competitive and profitable, in order to sustain our gains, I believe that we also need to adopt the business model: do well, do good, feel good. This business model is now adopted by Unilever Philippines and other big corporations worldwide. It suggests that for every organization, rural banks for that matter should do business with a cause. Clients are now more inclined to scrutinize our business not only at the level of the product or service but also its cumulative impact in the society, environment, youth, women and marginalized sectors. Maybe, we as rural bankers would want to take a look at our corporate mission and vision. Are we here for profits alone? Or do we value our role as the indispensable partner of the government in nation building? Development is holistic in nature. It encompasses all aspects of a man’s life – social, economic, and human development. Thus I encourage all the members to operate within a corporate value of doing business for a cause. Overall, our main thrust for unity and continuity is to enhance the full service mechanism of our sector through the support of the federations and confederations. We are now in a situation of adverse economic, political and social uncertainties. Yet, i am confident that through your support and feedback to our ongoing initiatives, we can be at par with other and bigger financial institutions, inspite of such uncertainties. I won’t hold you captive of a long message tonight but let me just reiterate and leave this challenge: let us all do well so we can do good in order for us to feel good! Mabuhay po tayong lahat! Magandang gabi. |
 |
Circular Letters/Memoranda |
|
Speeches/ Presentations |
|
Photo Gallery |
|
Rural Banking Week Celebration Golf Tournament |
|
FMMRB Disclaims the White Paper Being Circulated |
|
Federation of Batangas Rural Bankers -Fellowship Trip to China, Sept. 08-13,'08 |
|
Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
|
Financial Reporting Package 2008 |
|
BSP releases regulations on liquidity, market risk weighting |
