accreditation_process2006forweb by niusheng

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									            Bank Accreditation
              Process Flow
        “Multiplying partnerships and synergizing for SME financing”




Process flow for web/Rperez/Aug. 28, 2006/SBGFC/PDMU
 Bank accreditation
1.   An evaluation system that banks must
     undergo to obtain an accreditation
     status and an Omnibus Credit Line (OCL)
     under SBC’s Wholesale Lending Program
2.   Once accredited, the bank shall also be
     granted an automatic access to SBC’s
     Credit Guarantees Program as an
     incentive

3.   For banks that intend to utilize only the
     SBC Credit Guarantees, a simplified
     accreditation process is provided under
     SBC Circular 180, Series of 2006
          (Please click the related link, SBC Circulars 2006)
 Bank accreditation
4.   Bank accreditation is a two-phased
     process: Pre-qualification and Evaluation Proper
     -The Evaluation Proper has two aspects:
     Quantitative and Qualitative Aspects

5.   Bank accreditation has four modes:
     • Simplified accreditation for banks interested only
       in SBC Credit Guarantees
       Regular accreditation mode
       Fast-track mode
       SULONG accreditation mode for thrift and rural
       banks
 Financing institutions that may
  apply for accreditation
 Universal bank
 Commercial banks
 Savings and mortgage banks
 Private development banks
 Stock savings and loan associations
 Cooperative banks
 Rural banks
 Financing and leasing companies

  So long as it presently engages in small
  and medium enterprise (SME) on-
  lending
 Simplified accreditation for banks
  interested only in Credit Guarantees     1st of 4

 Documentary requirements

 1.   BSP CAMELS Rating of at least “3.0”
      Risk-based Capital Adequacy Ratio of
      at least 10% on solo basis (head
      office and branches)
      Past due rate of not higher than SBC’s
      ceiling of 20%
      Positive net income for the past two
      years
      A specialized lending unit to handle
      and monitor SBC guaranteed
      accounts
 Simplified accreditation for banks
  interested only in Credit Guarantees       1st of 4

 Documentary requirements

 1.   BSP CAMELS Rating of at least “3.0”
      A specialized lending unit to handle and
      monitor SBC guaranteed accounts
 2.   Past due rate of not higher than
      SBC’s ceiling of 20%

 3.   Risk-based Capital Adequacy Ratio
      of at least 10% on solo basis (head
      office and branches)

 4.   Positive net income for the past two
      years
 Simplified accreditation for banks
  interested only in Credit Guarantees
 After a year, the PFI must comply with SBC’s review
 criteria:

  1. Latest BSP CAMELS Rating of at least “3.0”

  2. Positive net income for the latest fiscal
     year and most recent past two quarters

  3. Past due rate of not higher than SBC’s
     ceiling of 20%
 Simplified accreditation for banks
  interested only in Credit Guarantees

 After a year, must comply with SBC’s review criteria

 4. Guarantee calls paid to the PFI must not
    constitute more than 30% of SBC’s
    cumulative guarantee paid amount since
    2002 or the PFI’s claims ratio must not
    exceed 4%

    (Claims ratio defined as bank’s total guarantee paid
    accounts/ total contingent liability, whichever is less
    stringent at the time of annual performance review)
 Regular Accreditation Mode            2nd of 4


 Documentary requirements

 1. Latest BSP Report on bank general
    examination, reflecting the bank’s composite
    CAMELS Rating of at least “3.0”


 2. Board Resolution to participate in SBC
    Wholesale Lending Program, showing likewise
    the bank’s authorized signatories with their
    specimen signatures and CTC Nos.

 3. Consolidated Statements of Condition, and of
    Income and Expenses for the last three (3)
    years and latest fiscal year (as submitted to BSP
    or with BSP stamp “Received”)
 Regular Accreditation Mode            2nd of 4


 Documentary requirements

 4. Report of Compliance with BSP General and
    Specific Loan-Loss Provisioning Requirements
    as of latest end-quarter or as of end-Dec. of past
    year (with BSP stamp “Received”)

 5. Report of Compliance with the Mandatory Credit
    Allocation for SMEs (with BSP stamp “Received”)

 6. Report on DOSRI Loans, reflecting compliance
    with Ceilings for both on Secured and Unsecured
    DOSRI Loans (with BSP stamp “Received”)

 7. Historical background of the bank, such as year
    of establishment, equity investments, corporate
    milestones, strategic directions and branch
    network
 Regular Accreditation Mode           2nd of 4


 Documentary requirements

 8. List of Key Officers and Members of the Board
    with their respective personal data sheets as
    submitted to BSP; for Stockholders, the
    corresponding shareholdings and percent of
    shareholdings or amount of shares paid up must
    be reflected
 9. SEC-approved Articles of Incorporation and By-
    Laws, including its amendments, if any
10. BSP-computed Risk-based Capital Adequacy
    Ratio (with BSP stamp “Received”)

11. Table of Organization showing special lending unit
    or list of personnel to handle SBC programs
 Regular Accreditation Mode             2nd of 4

There are two aspects of evaluation:

1. Quantitative (Financial)
                  Latest    Past 3   Industry   Weights
                   year     years     ratios
                           average
  Profitability                                     20%
  Asset                                             25%
  quality
  Solvency                                          25%
  Liquidity                                         30%



2. Qualitative (Management quality and
   Compliance with regulatory and industry
   standards)
2. Qualitative (Management quality and
   Compliance with regulatory and industry
   standards)
   Management            Board of Directors and Key Officers



   Ownership structure   Major Stockholders with % of total
                         shareholdings


   Background of the     Past consolidation or rehabilitation
   PFI


   Compliance with BSP   Ceilings on DOSRI Loans, Required Loan-
   minimum statutory     loss Provisioning, Risk-based Capital
   requirements          Adequacy Ratio, etc.

   Experience in SME     Mandatory Credit Allocation for SMEs
   On-Lending
 Fast-track Accreditation Mode               3rd of 4


  Available only to banks with Composite
  CAMELS Rating of “4.0” based on latest
  BSP bank general examination


 Fast-track Criteria         Requirements

1. Very good financial   Latest BSP Report of General
   condition             Bank Exam must show a
                         composite CAMELS Rating
                         of “4”
 Fast-track Accreditation Mode                  3rd of 4



  Fast-track Criteria         Requirements


2. Strong intent to        Board resolution to
   participate in SME      participate in SBC Wholesale
   wholesale lending       Lending Program with
   program                 Authorized Signatories that
                           shows their specimen
                           signatures and CTC Nos.



3. Profitable operations   Consolidated Statements
                           of Condition, and Income &
                           Expense as of Dec. 31, 2005
                           and past two years
                    1. Certificate of bank ranking in
Alternative Modes      terms of assets, as issued by an
of Compliance          industry association

with the            2. Certificate of bank ranking in
                       terms of capital, as issued by
Composite              an industry association
CAMELS Rating
of “4”              3. Certificate of bank accreditation
                       with other specialized lending
Requirement            programs with credit
                       information specified (type/
                       name and amount of credit
                       facility, latest outstanding
                       balance of loan, status and
                       maturity date of line/ loan)
 SULONG Accreditation Mode for Thrift
  and Rural Banks                4 of 4        th




 Documentary requirements

 1. CAMELS Rating should be at least "3.0"

 2. Compliance with the 10% maximum ratio of past
    due DOSRI Loans
 3. No loan arrears with LBP and BSP, Quedancor,
    SBGFC, PhilEXIM, DBP and SSS. Not suspended in
    BSP and LBP rediscounting facilities.

 4. Past due loans and items in litigation is not in
    excess of the industry average plus 2% but not
    to exceed 25% (based on latest quarterly report
    of BSP). A five year transition period is granted
    to banks with past due rate in excess of industry
    average plus 2 for compliance with the standard.
 SULONG Accreditation Mode for Thrift
  and Rural Banks                4 of 4         th




 Documentary requirements

 5. Not deficient in required Loan-Loss Provisioning
    or Reserves
 6. Ratio of acquired assets to total assets is not more
    than industry average plus 2% but not to exceed
    15%. A five year transition period is granted to
    banks with acquired assets to total assets in excess
    of industry average plus 2 for compliance with the
    standard.

 7. Positive results of operations in the last preceding
    calendar year
 8. Not deficient in bank reserves for the last six
   months preceding the filing of application
 SULONG Accreditation Mode for Thrift
  and Rural Banks                4 of 4          th




  Documentary requirements

  9. Ratio of accrued interest receivables to surplus
     (free) plus undivided profits is less than 100%
 10. The bank is owned and managed by the same
     persons (key officers) at least for the last two
     years

 11. No derogatory information gathered on the
     Officers and Directors of the bank

 12. Compliance with BSP Circular 283 issue dated
     May 17, 2001 on Corporate Governance
        For bank accreditation
        purposes, please contact:
          MS. MA. TERESA B. LACAP, PLANNING OFFICER IV
          @751-1888 LOCAL 1708 OR 1743 or by e-mail to
          mlacap@sbgfc.org.ph


          AND/ OR


          MS. LOURDES ROSARIO M. BAULA, SENIOR ACCOUNT
          MANAGEMENT SPECIALIST
          @751-1888 LOCAL 1732 or by e-mail to
          lmedel@sbgfc.org.ph




Process flow for web/Rperez/Aug. 28, 2006/SBGFC/PDMU

								
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