The Bangko Sentral ng Pilipinas (BSP) has announced a new initiative to provide technical assistance to qualified rural banks in order to strengthen the rural banking sector and enhance the resilience of small banks.
During the Rural Bank Strengthening Program (RBSP) Technology and Innovation Forum held on May 31, BSP Governor Eli Remolona Jr. revealed that the Monetary Board has approved the RBSP Technical Assistance. This assistance will focus on capacity building, digitalization, and financial advisory support for rural banks, aiming to address their specific needs and challenges.
In a recorded message, Governor Remolona emphasized the importance of rural banks in promoting inclusive growth and sustainable development. Monetary Board Member Rosalia De Leon echoed this sentiment, stating that the BSP is committed to creating an environment that supports banks’ digital transformation.
Launched in June 2022, the RBSP is designed to improve the operations, capacity, and competitiveness of rural banks, which play a crucial role in providing financial services in rural and agricultural communities. The program consists of four key elements, including a strengthened capital base, time-bound tracks, incentives, and capacity-building interventions.
The RBSP Technology Forum featured discussions on the potential of satellite technology and cloud computing in enhancing the operations of rural banks. The first panel session explored how satellite technology can improve internet connectivity and decision-making for banks, while the second session focused on the adoption of cloud computing to drive growth.
BSP Deputy Governor Chuchi Fonacier expressed the central bank’s commitment to using the insights gained from the forum to implement the RBSP Technical Assistance and strengthen collaboration with the rural banking industry.
