IFC investing P650 M in PR Savings Bank

Photo grab from www.prsavingsbank.com.ph

MANILA, Philippines—The International Finance Corp., the private-sector funding arm of the World Bank, is investing P650 million to recapitalize Philippine Resources Savings Banking Corp. (PR Savings Bank), the country’s fifth-largest independent thrift bank.

In a press statement on Friday, IFC said this capital infusion was intended to strengthen PR Savings’ balance sheet in order to expand lending in rural areas.

“IFC’s partnership will give us access to its global knowledge in microfinance, agribusiness finance, and small and medium enterprise banking, as well as to best practices in risk management and corporate governance,” said Roberto Alingog, PR Savings president and chief executive officer. “This will enable PR Savings Bank to grow further, particularly in provincial areas where access to finance is limited.”

Founded in 1977, PR Savings Bank has 102 branches and off-branch offices mostly in rural areas. The bank focuses on providing motorcycle financing, agribusiness loans to small farmers, microfinance loans to women, and salary loans to public-school teachers. About 45 percent of the bank’s borrowers are women.

“Some 80 percent of micro and small enterprises in the Philippines have no access to formal credit. IFC’s investment in PR Savings Bank helps address this gap, particularly in rural areas where 70 percent of poor Filipinos live,” said IFC resident representative Jesse Ang.

IFC noted that poverty in Philippine agricultural households was about three times higher than those in other sectors. Only one in four Filipino adults has an account in a bank or other financial institution.