Message from the Chairman

The Year 2018 had been very challenging not just for Rural Bank of Bayombong, Inc. (RBBI) but for the whole Banking Industry in general. Various Circulars, Memoranda, and Policies were laid
down by the Bangko Sentral ng Pilipinas (BSP) for compliance of all Banks. Several Bank Closures, a total of 12, in 2018 were made as a result of not being able to meet the different
requirements of the BSP, liquidity being one of those. As for RBBI, the main challenge is keeping the level of Loan Portfolio. The many Informal Lenders and Microfinance Lending Institutions are the primary competitors since these are not under the strict supervision of the BSP, not to mention the ballooning number of Cooperatives which are not subjected to tax thus they register a higher income compared to a Rural Bank.

Where is Rural Bak of Bayombong, Inc. today? Today on the road to its 58th Year, RBBI is currently on the List of Top Ranking Rural Banks in terms of Total Assets (No. 83), Total Stockholders’ Equity (No. 50) and Total Deposit Liability (No.98). Data was based on the BSP Report as of June 30,2018.

Recognizing its need to improve the Loan Portfolio, various Strategies were placed for the Year 2019. Management is eyeing a dramatic increase for the coming year. To answer the issue in Loan Portfolio, RBBI partnered with Small Business Corporation in program for Risk Based Lending. Officers were sent to the training conducted by the former. Loan process and Credit Risk
Management procedures were reviewed and made to fit SMEs, not in terms of granting non-collateralized loans but in terms of adopting the Risk Based Lending Guidelines. The different methodologies that were adopted resulted in the creation of the RBBI Credit Risk Manual 2018.

In order to keep abreast with the current Policies, Procedures and Guidelines, Directors, Officers, and other personnel were sent to different seminars such as Advanced Corporate Governance, Circular 950: Updated AML Rules and Regulations, Technical Compliance Workshop on Credit Information Corporation, Liquidity Risk Management and Stress Testing Seminar, Compliance Officer Workshop, Orientation on BSP Circular 941 to name a few. Inputs from seminars and trainings were adopted by Management to improve the Policies and Performance of the Bank. In-house Seminars and Team Building Activity were also done to keep the employees Updated with their duties and responsibilities. This aims to minimize non compliance or wrong submission of reports which may result to penalties.

RBBI on its way to 58th Year, boosts of the following:

Human Resource – Energetic workforce consists of young trained individuals
Technology – The First Bank in the Province to use Computers, named Robi and Rubi. Today, The Bank’s Information Technology System is able to produce the minimum standard requirements in banking service. IT Department regularly updates the system to meet the demands of a fast paced organization
Culture – Strategic Planning and Team Building sessions are done at least on a yearly basis to enable the workforce to understand the direction the Bank is taking towards
achieving success
Competitive Advantage -Young Minds and Young Bodies translate to Better Performance and Better Services
Service – Personalized through Field Visitations, Clients Calls, and Strategically Located Branches plus access from anywhere through the RBBI website,

Lastly, Rural Bank of Bayombong, Inc, Management as part of delivering services to the Provinces of Nueva Vizcaya, Isabela, and Quirino, held several outreach programs. This included feeding programs, giftt giving, and also educating the beneficiaries on saving for their future. These were a follow-up to the many years of bringing smiles to those who have less as part of the Social Responsibility of the Bank.

RBBI Policies and Procedures were also reviewed and enhanced by the different departments such as the Compliance Office, Internal Audit Department, and EDP together with the Board and Top Management.

As a parting message, we Rural Bank of Bayombong, Inc. would continue to work and deliver service in accordance with sound banking practices and adhere to the contents of the Truth in Lending Act, because only if we do this that real service to the countryside as the main purpose of rural banks is achieved.

Maraming Salamat po sa inyong pagtangkilik!

Rachelle R. Foronda
Chairman of the Board
Rural Bank of Bayombong, Inc.