MORNBFI Vol. 1 - Planters Development Bank

App. Q-5410.12.31PROCESSING GUIDELINES FOR MICROFINANCE OTHERBANKING OFFICES OR MICROBANKING OFFICES(Appendix to Subsection 4160Q.3)The establishment of other bankingoffices and the notes on microfinance shallbe guided by the following processingguidelines:The processing of applications will beundertaken in a two-stage process.Stage 1: Letter of Intent and PrequalificationStage 2: Business Plan (Strategic andOperational Plan Assessment)Stage 1: The applicant QB shall submita letter of intent duly authorized by theBoard of Directors, signed bythe President or equivalent rank.The letter will be evaluated by theappropriate Supervision and ExaminationSector (SES) Department based on safety andsoundness considerations.Stage 2: The applicant QB will berequired to submit a business plan containingthe strategic and operational details. Amongothers, such plan shall address the followingquestions:1.Why is the QB establishing microbankingoffices and how does it relate to theoverall corporate strategy?2. How many are to be established inthe next 1 (one) year, 3 (three) years, 5 (five)years? Where are these to be established?Why have these areas been identified?3. What are the products and servicesto be offered?4. How is the expansion to be funded?5. How does the QB plan to maintainadequate command and control over theexpanded network?6. The proposed MBOs are to be linkedoperationally to which branches?7. How does the QB propose to complywith the minimum fifty percent (50%)microfinance transaction requirement perMBO? (Microfinance transactions compriseof micro-loans and micro-deposits)8. What is the policy on the minimumcash position of the MBO? This shall includearrangement for replenishment.9. What are the management andorganizational arrangements for the MBO?This shall include proposed staffing patternand functions and qualification of thepersonnel in accordance with therequirements in 4160Q.3.10. What are the ManagementInformation Systems (MIS)and financial accounting arrangements tosupport customer handling and properrecording and reporting of transactions?11. What are the physical securityarrangements? These arrangements shall beincluded in the overall security program ofthe bank.A final decision will be made based onthe quality of Stage 2 submissions. Stage 2submissions will be evaluated whether theproposed operational plan is commensurateand proportionate to the strategy to ascertainsafe and sound MBO operations. A QB mayapply for additional MBOs, after six (6)months from approval of the initial set/batch.All MBOs must be opened within one (1)year from their approval. If not deemedsatisfactory, the application may be denied.Re-application shall only be allowed aftersix (6) months from the date of receipt ofdenial.All applications are to be submittedthrough the Central Application andLicensing Group (CALG) of the SES.(M-2010-040 dated 04 November 2010)Manual of Regulations for Non-Bank Financial InstitutionsPage 1