RBAP-MABS trains rural bankers in fraud and delinquency management tools

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The USAID-supported RBAP-MABS Program, with its commitment of continuously providing technical assistance to its partner rural banks in enhancing their microfinance operations, facilitated a Microfinance Fraud and Delinquency Management Workshop last February 9-11, 2011. Conducted in Cabanatuan City, the training workshop was attended by 12 participants composed mostly of microfinance supervisors and internal auditors from five Luzon rural banks: First Macro Bank, Rural Bank of Solano, Rural Bank of Gattaran, Community Bank ( RB Alfonso) and GM Bank as the host bank for the 3-day activity.

The participants received training and workshop sessions on the different faces of fraud and its prevention, detection and management. Mr. Justino A. Guarin Jr., Internal Auditor of Community Bank, shared: “This is the first time that I got an idea on how to go about auditing microfinance operations. I realized that it is very much specialized compared with auditing regular banking operations. One should know the nitty-gritty of the microfinance operations before doing the audit.”

Fraud & DQ Wshop 2Delinquency management was also emphasized during the workshop. The participants were able to analyze portfolio quality using their own bank’s reports.  The workshop helped them to identify the root causes of their delinquency problems and explored options to address delinquency problems including managing hardcore accounts. “I always thought that continuously exerting all efforts to collect a defaulted account is the best means to address delinquency issues. Through the delinquency management session, I learned that we also have to look at the reasons why these accounts defaulted and to explore other means of remedial management. For this, the microfinance unit needs the support of the bank management,” said Mr. Jun Seguro, Microfinance Supervisor of the Rural Bank of Gattaran.

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The highlight of the 3-day workshop was the actual field validation of the participants of the long overdue accounts of one bank. Mr. Rommel Soriano, Audit Supervisor of GM Bank, shared: “The experience of actual field validation of the past due accounts gave me an idea on how I would be conducting my next validations.”

The insightful sharing from both the facilitators and the participants created a concrete environment for everyone to come away with practical applications that they can utilize immediately within their respective banks.

RBAP-MABS will soon be organizing similar training workshops for the Visayas and Mindanao Banks.