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THE ECONOMY
VOL.5 ISSUE 3 • MARCH 7, 2012
BSP approves consolidation of three rural banks in Mindanao T
HE Monetary Board of the Bangko Sentral ng Pilipinas (Bangko Sentral), approved on 16 February 2012, the consolidation of the First Community Cooperative Bank of Misamis Occidental (FBMO), Cooperative Bank of Davao del Sur (CBDS) and Cooperative Bank of Surigao del Sur (CBSS) to form a new cooperative bank to be known as Consolidated Cooperative Bank (CCB). First Community Cooperative (FICCO),
a primary cooperative based in Cagayan de Oro City, which is the majority shareholder of FBMO, CBDS, CBSS, spearheaded the consolidation of the three banks. CCB, as the new consolidated entity, will assume all the assets and liabilities of the three constituent CBs. The plan of consolidation was a collective agreement of the common shareholders of FBMO, CBDS and CBSS in their desire to strengthen the financial position and operating efficiency of their respec-
tive cooperative banks with the intent to become a relevant player in the socio-economic development of Mindanao. The Bangko Sentral is actively promoting mergers, consolidations and acquisitions of cooperative banks as a means to promote larger and stronger institutions whose more solid capital position and wider branch network would enable them to deepen their reach in the countryside, spur lending activities in the unbanked and the
underserved areas, and eventually uplift the economic condition of the people residing in these communities. Among the incentives approved by the Bangko Sentral ng Pilipinas is that the consolidated bank, subject to compliance with certain requirements, will be allowed to establish branches/offices in major cities and towns of Mindanao. It will also be allowed to revalue existing properties necessary based on fair valuation.
EDGEDAVAO
LandBank goes global with Visa International
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AND Bank clients may soon enjoy the benefits of convenient, cashless purchases worldwide through LANDBANK Visa International Debit Card. An agreement has been signed between Land Bank of the Philippines, the country’s official depository, and Visa Worldwide Pte., Limited to develop the said product. This card allows access to over 2 million ATMs and more than 31 million point-of-sale terminals connected to the Visa Worldwide network. With the International Visa Debit Card, Land Bank expects to not only expand service delivery reach to customers but also to reduce cash handling and overhead ATM costs once payments migrate to POS transactions. “This partnership with Visa likewise prepares us to respond to government requirements to institute reforms in payment and collection
systems by providing a secure, convenient, and reliable method of payment for our consumer, business, and even public sector clients,” said Land Bank President and CEO Gilda E. Pico. v“We are delighted that Land Bank has chosen Visa as its strategic partner for the implementation of its international debit card product. There are over 16,000 banks around the world that currently issue or acquire Visa cards, and Land Bank decision to strengthen its relationship with Visa ensures that the bank will be able to offer the latest in electronic card payment services and technology to its individual and corporate customers as well as the Philippine Government for years to come,” said Visa Worldwide Country Manager Iain Jamieson. Pico and Jamieson signed the agreement in a ceremony held at the Land Bank Plaza in Malate, Manila.
DA eyes new market for coco sugar, poultry, and meat
MALL SCHEDULES. Mall-goers in Davao City pass by a poster of the schedule of events for the month-long celebration of the 75th Araw ng Dabaw. The poster also features the brave
men and women of Davao who ensures the safety and security of the people of Davao round the clock allowing trade, commerce, and tourism to thrive. [Karlos Manlupig]
DOST 11 to launch incubation program
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HE Department of Science and Technology (DOST) will soon give a wider range of support to countryside entrepreneurs with the establishment of its Community Technology Business Incubation program this year, a statement said. According to Technology Resource Center (TRC) Director Dennis Cunanan, the program, which is an offshoot of the agency’s Open Technology Business Incubation (Open TBI), will be implemented through its regional offices. A technology business incubator, or TBI, is a program that helps entrepreneurial companies and start-up businesses
to take off and develop through its array of business support resources and services. Some of TBI services include business space for rent, marketing assistance, accounting/ financial management assistance, links to partners, help with regulatory compliance, and others. In addition to helping entrepreneurs start up their businesses, the agency also helps overseas Filipino workers (OFWs) to start over through its free livelihood trainings to displaced OFWs. DOST, in partnership with Duty Free Philippines, likewise offers livelihood packages such as washing machines for
Laundromat business or car tools for automobile service business through its Kabuhayan Shopping Program. “The TRC has been the industry leader in terms of livelihood training and technology resource for nearly 35 years. In keeping up with its mandate of creating opportunities, TRC will continue improving and innovating its programs to be able to enhance the productivity of more sectors,” DOST Secretary Mario Montejo for his part said. “This year, TRC will focus on sectors like the youth, women, senior citizens and OFW’s... Expanding our services will enable us to serve more sec-
tors and, this way, people can identify themselves and find their place in the whole picture,” Cunanan said. “Creating opportunities is a continuous process. We will not stop from now and make sure that the workforce of the center will adapt to the changing times and we will be still relevant and effective as an institution. The people deserve nothing less,” he added. Aside from strengthening its public-private partnerships, TRC’s programs also includes commercialization of affordable baby food products developed by Food and Nutrition Research Institute. (Dost)
T
HE Department of Agriculture through the Philippine Coconut Authority (DA-PCA) will aggressively promote export of coconut sap sugar, popularly called ‘coco sugar,’and corner a big share of a billion-dollar alternative sweetener market. Agriculture Secretary Proceso J. Alcala also added that they are eyeing new and emerging markets as possible destinations for the export market. “In tandem with the private sector, we are crafting a master plan to promote coconut sap sugar overseas and win a big share of the $1.1-billion global alternative sweetener market,” said Secretary Alcala. Further, he said the DA — in tandem with Philfoodex and other agrifishery food producers, processors and exporters — will tap new and emerging exports markets, and strengthen existing ones. He said the country
will reinvigorate and diversify traditional farm exports like coconut oil, tropical fruits (banana, pineapple and mangoes), tuna, sugar, and abaca, among others. For emerging markets, he said the country is eyeing at the following countries: South Korea for avocados, after we allowed the entry of Korean paprika into the Philippines; China for bangus or milkfish, as Alsons Aquaculture Corp based in Sarangani, sent an initial shipment of nine tons of bangus to Xiamen; Japan and Malaysia, for pork; and South Korea, for chicken. For livestock and poultry, Secretary Alcala said that the country will bank on its FMD- and bird flu-freedom to expand the market in Asia, Middle East and other parts of the world. “These are just some of our initiatives meant to support the continued growth and prosperity of the food, agribusiness and agriculture industry,” the DA chief said.