Rural bankers embrace more transparent services

Manila TimesMaking the pricing of bank products transparent has lately been a hot topic among bankers in line with the global trend towards accountability in the aftermath of a financial turmoil that brought down even the world’s banking giants.

It is widely held that the debacle was caused by fraud and greed and the lack of transparency among these dominant financial institutions.

Last March, the Rural Bankers Association of the Philippines (RBAP) and MFTransparency, a global network advocating transparency among microfinance institutions, and the Microfinance Council of the Philippines held the Transparent Pricing Initiative forum to promote primarily responsibility among financial institutions in providing information to their clients.

Gladly, participants in the timely event embraced the need for more openness in providing accurate information to depositors primarily on interest rates applied on loans.

Emerging economies such as the Philippines are in the process of strengthening institutions and processes to allow equitable economic growth that would include most of the population and this requires the adoption of social principles such as ethical practices in business.

The need for transparency in pricing was, for instance, the basis for a requirement for banks to post the “Truth In Lending Act” in their premises as a guide for the need on accuracy, transparency, and fairness in the provision of financial services.

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