Bayani Ng Bayanihan

Gone are the days when the Rural Bank (RB) was viewed as a small operation in the backwoods of the Philippines.

Today Rural Banks are as modern as any city bank – sometimes even more modern than their city counterparts. In fact in some of our towns Rural Banks are not rural, but THE BANK of choice for community residents.

Rural Banks are the cornerstone of countryside development in the Philippines. All are privately owned and funded but closely monitored by the Central Bank of the Philippines or Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit and Insurance Corporation (PDIC). They are platforms for banking services and loans for farmers and Filipinos living in small towns in the provinces.

What distinguishes a Rural Bank from big name banks like BPI, BDO, Citibank and others? Here are a few:

1. RB’s are given a specific area of operation or province where they can operate as determined by the BSP.
2. RB’s are homegrown and usually owned by people who were born and live in the area where the RB operates. Hence, they are locally known by the people in the community they serve.
3. RB’s are NOT allowed to invest their funds/deposits/assets in other parts of the country or outside of it. They are only allowed to invest in the areas where they operate. Hence there is absolutely no chance that it can be affected by world financial crises.
4. RB’s invest in the province in the form of loan packages that they provide owners of small businesses or for community development projects where they operate.
5. Some of the biggest RB’s are allowed to operate in several provinces, depending on their performance and liquidity. This is determined by the BSP.
6. Most RB’s have ATMs, Remittance services, Peso and Dollar Accounts, Checking accounts, Time Deposits, Micro financing loans and OFW placement loan packages.
7. When you open an account in a Rural Bank, you are helping improve the economy in your hometown. Why? Because RB’s lend to members of the community who want to establish businesses in your hometown. In turn, these businesses create job opportunities for the community as well.

If you are an OFW, what benefits can be derived from opening an account in the RB in your hometown?

1. Safe – All transactions are conducted within the bank premises and are processed through your account.
2. Secure – Deposits are covered by Insurance as much as P 500,000. Pesos guaranteed by the PDIC.
3. Trust – The bank manager or even the owner is known by you or by members of your family. Even the employees may have been your classmate or their children are classmates of your children. Iba pa rin ang magkababayan, diba!
4. Convenience – Since an RB is located in your hometown, it is convenient to transact business with them. Hindi mo na kailangan lumayo o di na kailangan pang pumunta ng pamilya mo sa ibang lugar.
5. Guaranteed Remittance – Your remittance or hard earned money can be received by relatives in their respective bank accounts within the bank. Wala ng kaba!
6. OFW Placement Loan Packages – For OFW’s with a definite contract, some RB’s provide placement loan packages that assist with the expenses of the OFW prior to departure.
7. Financial Advise – Rural Banks can provide the best financial advise for OFW investments as they know what businesses usually thrive in the area they operate in.
8. Higher interests – Some RB’s provide higher interest rates for long term time deposits. These are tax free and still covered by the PDIC up to P 500,000. pesos.

Now, it can’t be helped that there are some RB’s who have questionable reputations. Here are some things to look for to determine a Rural Banks strength.

• Determine how long the Rural Bank has existed. Are they newly established or, have they been in the province for over 20 to 50 years.
• How many branches do they have? Is it a one branch operation or multi-branch and multi-province.
• Honest RB’s would have a website where all financial information are available.
• Visit the bank branch and ask questions. Huwag mahiyang magtanong dahil gusto rin naman nilang maging customer kayo.
• Ask relatives and friends about the bank. Siguradong mayroong may ka kilala ang manager doon or isa man lang empleyado na maka tutulong sa iyo.
• Check with the BSP as they have a list of all the RB’s in the Philippines and those who are not financially stable/blacklisted.

When you open an account in your Rural Bank, you have already started the process of Bayanihan in your community. Ang pagtangkilik sa kanila ay pagtangkilik sa inyong bayan tinitirahan at babalikan. Halina, Bayaning Bayanihan na!