Comments on: New banking model mulled to check decline in SME lending

By: Eugenio A. Demigillo, Jr.

Eugenio A. Demigillo, Jr. — Tue, 20 Nov 2007 10:21:20 +0000

Why Card Rural Bank? Does it have expertise in SME lending operations? From what I know, Card Rural Bank ties up with its own Card Foundation for promotion and implementation of microfinance credit schemes, or does MF alternately with its own NGO-foundation. They have not been known for SME lending, rather for MF models. I am sure there are a number of provincial thrift banks engaged in the sector. If none, then it proves the sorry state of SME finance in the Phils.

By: Karen Galarpe

Karen Galarpe — Thu, 22 Nov 2007 02:21:42 +0000

Well I think it’s good that one bank has partnered with IFC. Let’s give them a chance. This is just the start. Other banks can partner with IFC.

By: Ned Liuag

Ned Liuag — Fri, 23 Nov 2007 01:35:10 +0000

The International Finance Corporation (IFC) has been a shareholder of Planters Development Bank (Plantersbank) since 2000. IFC and Plantersbank–which specializes in SME finance–set up the joint venture SME.com.ph (http://www.sme.com.ph) to introduce information technology solutions for and promote confidence in e-business in the Filipino SME community.

By: Luc Vaillancourt

Luc Vaillancourt — Wed, 28 Nov 2007 01:55:17 +0000

CARD Bank was selected as the first SME partner bank by IFC because it proved to me the most determined and commited to bringing in outside capacity building in order to better serve the SME segment. IFC is pleased to be partnered with the CARD group as it has proven its ability to offer financial products efficiently, profitably, and to a large number of people (over 500,000 clients). CARD Bank’s ability to serve rural areas where no other SME banking products are yet available also give this partnership much potential. As mentioned in the article, however, IFC is working on several other banking partnerships that should further increase the outreach of financial services to SMEs in the Philippines.

By: Mike Bohol

Mike Bohol — Wed, 05 Dec 2007 07:51:09 +0000

I’ve personally seen how CARD work with their microfinance in my province and I would say that they are really successful in providing much needed capital at these rural areas. At the same time, their model is really good that even if they deal with rural folks, they remain profitable. However, it would still be a challenge for them to serve a larger and much more challenging market. I’d say let’s give them a chance.