SGV conducts workshop for Cebu rural banks

As part of its capacity-building initiatives for rural banks, SGV, in partnership with the Rural Bankers Association of the Philippines (RBAP), conducted a two-day workshop last 4-5 May 2018 at the Cebu Grand Hotel, Cebu City. There were 27 participants representing 10 rural banks, one cooperative bank and others from private practice.

FSO Senior Director Cathy Biliran opened the discussion on BSP Circular 855, outlining the importance of having robust credit management policies and frameworks in place, as well as its complete documentation and monitoring. This includes managing Past-Due and Non-Performing loans, as defined by BSP Circular 941.

Associate Director Ruben Simon discussed a holistic approach on formulating credit risk strategy, incorporating an integrated stress-testing as well as new approaches in penetrating new markets as espoused by BSP Circular 908 – the Agri-Value Chain Financing Framework.

Senior Associate Russel Ailes expounded on the proportionate application of PFRS 9, based on the portfolio of the rural banking sector. This includes discussions on approaches in determining Expected Credit Loss (ECL) and loan loss methodologies, among others. He further emphasized that having a comprehensive and ‘clean’ set of data is the prerequisite in formulating models for financial institutions.

Associate Director Ruben Simon also introduced the Risk-Based Capital Planning as an iterative process for capital planning—which takes into consideration the financial institution’s business and strategic plans and risk assessments, as well as its stress-testing scenarios.

FSO Advisory Partner Christian Lauron also discussed how Strategic Asset Allocation can further help the banks in not only managing their resources but also maximizing the potential of these resources. To close the workshop, Associate Director Ruben Simon discussed sample data visualization tools to help the banks formulate management dashboards that could aid in management decision-making.

Also present during the workshop was Rural Bankers Research and Development Foundation Program Manager Ace Calang.