Philippine central bank accredits 4 rural financial institutions

The Bangko Sentral ng Pilipinas has accredited four rural banks as rural financial institutions.

The four rural banks were Rural Bank of Kiamba Inc. in Sarangani, Rural Bank of Barili in Cebu, Producers Savers Bank Corp. in Pasig City and Rural Bank of Sta. Catalina.

As certified RFIs, the loan portfolio of these banks have been found to be compliant with BSP regulations and under the provisions of RA 10000.

The BSP reminds the public that while the banks have been certified as eligible RFIs, this is no way serves as an endorsement for the safety and soundness of the banks accredited.

The creation of RFIs is just one of the alternative compliance provided under the new law. RFIs also eliminates the old practice of “layering”, said the BSP, which is funding through several conduits before the proceeds are received by the targeted beneficiaries or intended projects.

The accreditation was made  under the amended Agri-Agra Law or Republic Act 10000.

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