| The
establishment of rural banks in the Philippines traces its beginnings with
the enactment of Republic Act 720 in June 1952. The Act envisioned the
rural banks "to promote and expand the rural economy in an orderly and
effective manner by providing the people of the rural communities with
the means of facilitating and improving their productive activities and
to encourage cooperatives."
The
enactment was done at the time when the country was reeling from the devastation
of the Second World War and the rural areas, home to 85% of the population
then, were truly underdeveloped. The rural banks, under the rules, regulation
and supervision of the Central Bank of the Philippines, continuously provide
credit and other banking services to farmers, fisherfolks and rural businesspeople
to improve the quality of life in the countryside.
The
vision of improving the quality of life in the countryside rallied men
and women with noble interests. From a diminutive number of 18 rural banks
operating in 1953, it has grown to a total of 1,911 banking units spread
out all over the country. At present, the combined resources of the rural
and cooperative banking system amount to P76.5 billion with rural banks
dominating the industry with a combined share of 93.5 percent. Statistically,
rural bank transactions represent only 2.2% of the total banking system,
but in terms of service to people, rural banks serve 70% of the total banking
clients. And as poverty resides in the countryside, rural banks essentially
matter in the lives of the poor.
Today
in celebration of the 50th anniversary of rural banking, the rural banks,
united under the Rural Bankers' Association of the Philippines are reiterating
their commitment as intermediaries of change in the countryside to help
build local economies. |
