Government starts roadshow for TBs, RBs

To help improve the long-term viability of countryside financial institutions (CFI), the Philippine Deposit Insurance Corp. (PDIC), the Bangko Sentral ng Pilipinas (BSP), and Land Bank of the Philippines (Landbank) will conduct roadshows nationwide targeted at thrift and rural banks.

The roadshows are aimed at disseminating information on programs offered by PDIC, BSP, and Landbank to help enhance the capital base of CFIs under the countryside financial institutions enhancement program (CFIEP).

Thrift and rural bankers will be informed of the incentives in cases of mergers, consolidations, or acquisitions.

The BSP will discuss the purchase of CFI arrearages with the BSP to help boost CFI’s capital base and encourage new investors to infuse fresh capital.

Landbank will introduce its equity infusion programs for CFIs.

Established by virtue of BSP circular 1315, CFIEP aims to help raise the capital base and trim the debt burden of countryside financial institutions.

These twin objectives will improve long-term sustainability of CFIs thus reducing financial strain on the government.

The government agencies and financial institutions began conducting the CFIEP roadshows last year in Cebu City, Metro Manila, Butuan City, Davao City, Baguio City, Iloilo City, Olongapo City, Batangas City, and Tacloban City.

After Cagayan de Oro last month, five more roadshows will be conducted in the last half of 2007.