1st Valley Bank (formerly Rural Bank of Kapatagan Valley, Inc).

Gross Loan Portfolio USD, 2010: 66.4 million

Number of active borrowers 2010: 63,676

Average loan balance per borrower USD, 2010: 1,042.0

Deposits USD, 2010: 58.2 million

Assets USD, 2010: 98.9 million

Number of depositors 2010: 120,612

Mission:

To offer quality banking services for its clients and earn excellent returns for its investors and stockholders. To promote the welfare of the communities where it operates and ensure the well-being of its employees and their immediate families.

Background and Main Challenges:

Inroads of competition, looming financial crisis of country, lack of credit bureau

Address:

Poblacion Baroy

Lanao del Norte

9210

Philippines

Phone:

(+63) 063-373-633

Fax:

(+63) 063-498-0094

Email:

kapataganvalley [at] rbap [dot] org

Website:

www.1stvalleybank.com/

Main Funding Sources:

Loans

Savings

Shareholder Capital

Products and Services:

Loans

Voluntary Savings

Insurance

Fund Transfer Services

Products:

Loans, Voluntary Savings, Insurance, Fund Transfer Services

Services Provided:

Full-scale Financial Services

Looking for (Investment Types):

Loans in Local Currency

Capacity Building Grants

Equity investments

% Operations Comprised by MF:

0 - 10

Date established:

Jan 1 1956

FYE:

31-Dec

Current Legal Status:

Rural Bank

Regulated:

yes

Social Performance Profile


+ Mission specifics
+ Target markets (ranked by importance)
Salaried government employees	1
Clients living in rural areas	2
Clients living in urban areas	3
Women	4
+ Development goals (ranked by importance)
Increased access to financial services	1
Growth of existing businesses	2
Development of start-up enterprises	3
+ Poverty targets
No specific poverty target
+ Governance
+ Range of products and services
+ Financial products and services offered
+ Credit products offered
Microcredit loans for microenterprises
Microcredit for household needs/consumption
SME loans
Loans for agriculture
Loans for education
Housing loans
Salary loans
+ Savings products offered
Checking accounts
Voluntary savings accounts
Compulsory savings accounts (cash collateral)
Fixed term deposits
Special purpose savings accounts
+ Compulsory insurance products required
Compulsory credit life insurance
Compulsory agricultural insurance
+ Voluntary insurance products offered
+ Other financial products and services offered
Mobile banking services
Remittances services
+ Non-financial services offered
+ Enterprise services offered
+ Education services offered
Farming technology, value of savings for the students
+ Health services offered
+ Women's empowerment services offered
+ Products and services targeting the poor
Products and services specifically designed to target the poor:	Loans: Microfinance loans, supervised credit; Savings: Wais savings, Gihandom savings
+ Social responsibility to clients
+ Client protection principles in use
The loan approval process requires evaluation of borrower repayment capacity and loan affordability. Loan approval does not rely solely on guarantees (whether peer guarantees, co-signers or collateral) as a substitute for good capacity analysis.
Internal audits check household debt exposure, lending practices that violate procedures including unauthorized re-financing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
Prices, terms and conditions of all financial products are fully disclosed to the customer prior to sale, including interest charges, insurance premiums, minimum balances, all fees, penalties, linked products, third party fees, and whether these can change over time.
Staff is trained to communicate effectively with all customers, ensuring that they understand the product, the terms of the contract, their rights and obligations. Communications techniques address literacy limitations (e.g. reading contracts out loud, materials in local languages).
Acceptable and unacceptable debt collection practices are clearly spelled out in a code of ethics, book of staff rules or debt collection manual.
The organization's corporate culture values and rewards high standards of ethical behavior and customer service.
A mechanism to handle customer complaints is in place, has dedicated staff resources, and is actively used. (Suggestion boxes alone are generally not considered adequate.)
Customers know how their information will be used. Staff explains how data will be used and seeks permission for use.
+ Cost of services to clients
Flat interest method
+ Social responsibility to staff
+ Human resources
Transparency on salary (a clear salary scale based upon market salaries)
Benefits (medical insurance, pension contribution)
Protection at work (safety, anti-harassment)
Equality (anti-discrimination, equal pay for men and women with equivalent skill levels)
+ Basis of staff incentives related to social performance
Ability to attract new clients from target market
Client retention/drop-out rate
Portfolio quality
+ Social responsibility to the environment
+ Poverty measurement tools in use

Partnerships

Current
Name	Relationship
MABS	Partner
RBAP	Network Affiliation

MFI Report