Rural banks and microfinance rating agencies share the benefits and experiences of ratings

RBAP-MABS, with the support of USAID/Philippines and the Rural Bankers Research and Development Foundation Inc. (RBRDFI), held a workshop entitled “Benefits and Experiences of Rural and Microfinance-Oriented Banks on Ratings” on April 8 at the Pan Pacific Hotel in Manila. Twenty-four bankers from 16 rural banks participated in the workshop held in collaboration with MICRA Philippines, MicroFinanza Rating, and Planet Rating.
The workshop started off with presentations from the three microfinance institution rating agencies (MIRAs), which provided the participants with a complete picture of MIRAs operating in the Philippines. This was followed by a discussion by the Bangko Sentral ng Pilipinas (BSP) on Circular No. 685: Rules and Regulations for the Recognition of Microfinance Institution Rating Agencies issued on April 7. MABS participating banks – First Macro Bank, GM Bank, and Green Bank – ended the morning session by sharing their experiences on actual rating and assessment.
The afternoon session was filled with hands-on exercises on how ratings are conducted. Each agency presented an actual case study on one component used in their evaluation. The participants played the role of raters and conducted their own assessment based on the given case studies and criteria. For each of the three case studies, the assigned rating agencies presented the actual rating that was given and explained how this was determined. Interestingly, the participants turned out to be relatively stricter than the rating agencies in evaluating microfinance institutions. Thus, through an open forum, the bankers and the representatives of rating agencies thoroughly discussed how ratings are given based on specific bank conditions, trends, and other socio-economic factors.

RBAP-MABS, with the support of USAID/Philippines and the Rural Bankers Research and Development Foundation Inc. (RBRDFI), held a workshop entitled “Benefits and Experiences of Rural and Microfinance-Oriented Banks on Ratings” on April 8 at the Pan Pacific Hotel in Manila. Twenty-four bankers from 16 rural banks participated in the workshop held in collaboration with MICRA Philippines, MicroFinanza Rating, and Planet Rating.

The workshop started off with presentations from the three microfinance institution rating agencies (MIRAs), which provided the participants with a complete picture of MIRAs operating in the Philippines. This was followed by a discussion by the Bangko Sentral ng Pilipinas (BSP) on Circular No. 685: Rules and Regulations for the Recognition of Microfinance Institution Rating Agencies issued on April 7. MABS participating banks – First Macro Bank, GM Bank, and Green Bank – ended the morning session by sharing their experiences on actual rating and assessment.

The afternoon session was filled with hands-on exercises on how ratings are conducted. Each agency presented an actual case study on one component used in their evaluation. The participants played the role of raters and conducted their own assessment based on the given case studies and criteria. For each of the three case studies, the assigned rating agencies presented the actual rating that was given and explained how this was determined. Interestingly, the participants turned out to be relatively stricter than the rating agencies in evaluating microfinance institutions. Thus, through an open forum, the bankers and the representatives of rating agencies thoroughly discussed how ratings are given based on specific bank conditions, trends, and other socio-economic factors.