State-run Development Bank of the Philippines, the country’s eighth-largest lender in terms of assets, stressed the key role of rural banks in the countryside development.
DBP president and executive Emmanuel Herbosa said Friday rural banks play a pivotal role in promoting inclusive development, especially in the countryside, by providing credit to primary food producers such as farmers, fisherfolk and small businesses that commonly belong to the most marginalized sectors of the economy.
He said rural banks were natural partners of development financing institutions that seek to broaden their presence especially in municipalities experiencing economic resurgence.
“Rural banks are the cutting edge as they know the needs of the communities that they serve,” Herbosa said. “Together with development financing institutions such as the DBP, they can catalyze the rural economy and make it robust,” he said.
DBP is the eighth- largest bank in the country with assets totaling P669.75 billion as of end-2018. It provides loans to strategic sectors such as infrastructure and logistics, small and medium enterprises, social services and community development and environment.
DBP has a branch network of 137 branches, including 10 branch lite units that cater mostly to underserved and unbanked communities in the country. The bank also offers digital banking services to rural banks that cover disbursement and collection services and cash management solutions through the DBP Digital Banking Portal or DBP2.
Herbosa said rural banks and development financing institutions should work together in expanding financial inclusivity and implement mechanisms to cover the unbanked sectors such as the agricultural and rural workers.