RURA

L BAN
GROUP 5

K
RURAL BANKS
• Banks that are privately run, mostly privately owned,
and supported by the government; they offer credit
facilities at reasonable terms to farmers, merchants,
and their cooperatives, as well as to the general rural
populace. MSMEs (Micro, Small, and Medium
Enterprises).
RURAL
BANK
• It is the procedure used to carry
out financial transactions in rural
areas where bank branches are
too far away to be useful.
PRESENT
CONDITION OF
RURAL BANKING
IN THE
PHILIPPINES
RURAL BANKS HAVE A HIGHER ROE
AND ROA THAN THE COMMERCIAL
BANKS.
Return On Return On
Equity (ROE) 01
Elaborate on what you
Assets (ROA)
want to discuss.
• The amount of net • An indicator of how
income returned as a profitable a company
percentage of is relative to its total
shareholders equity assets.
FUNCTIONS
OF A RURAL
BANK
 1) Grant loans and make investments in accordance with existing
rules and regulations.

2) Accept savings and time deposits.

A RURAL 3) Sell domestic drafts.

BANK MAY 4) Act as correspondent for other financial institutions.

OFFER OR 5) Receive in custody funds, documents, and other valuable

PERFORM ANY objects, and rent safety deposit boxes for the safeguarding of such
objects.

OR ALL OF 6) Act as financial agent, buy and sell, by order of and for the
account of its customers, shares, evidences of indebtedness and all
THE types of securities.

FOLLOWING 7) Make collections and payments for the account of others and
perform such other services for its customers as are not

SERVICES: incompatible with banking business.

 • There were only 18 rural banks operating then
in 1853, but now there are 711 rural banks
(with 1,959 branches/other offices) all
licensed in the Bangko Sentral ng Pilipinas
TOTAL NUMBER
AND LIST OF • Rural as well as cooperative banks are the
most popular type of banks in the rural
RURAL BANKS communities. They are differentiated from
each other by ownership. Rural banks are
privately owned and managed, cooperative
banks are organized/owned by cooperatives
or federation of cooperatives.s
DIRECTORS
AND
OFFICERS
THE PRESIDENT AND AT LEAST A MAJORITY OF THE KEY
EXECUTIVE OFFICERS OF THE BANK MUST BE ACTUAL RESIDENTS
OF THE LOCALITY WHERE THE RURAL BANK IS OPERATING.

• Consanguinity (blood relationship) or affinity (marriage relationship)- key executive officers such as
the president, vice-president, manager, treasure, cashier and accountant must not be related to one
another
• No individual or family group (those related within 3rd degree of consanguinity or affinity) shall own
or control more than 35% of the voting shares upon organization of the rural bank
• No officer or director of a rural bank can be an officer or director of another rural bank
• Persons connected in the government, whether by election or appointment, cannot serve as officers of
the rural bank.

ORGANIZERS ARE REQUIRED TO ACCOMPLISH AND SUBMIT TO THE BANGKO

SENTRAL THE ARTICLES OF INCORPORATION AND BY-LAWS; THE BIO-DATA
OF EACH INCORPORATORS, SUBSCRIBERS AND OFFICERS AND A LIST OF
PRINCIPAL OFFICERS WHO WILL MANAGE THE BANK.
 DAHONOG, LAURA MAE
LEJEROS, SHAKIRA
ASHLEY
GROUP 5 SISTOSO, JOBELLE
MEMBERS: ANDREA
HOMERES, JHAIZA MAE
LINSONDRA, CHAIRAH
CUBILLAN, SHIELA MAE
SILAGAN, LHANNIE
HERMINA, NICAME
ARIGATHANKS
EVERYON
E