VALEDICTORY ADDRESS
of CTB Immediate-Past President AMB. ALFREDO M. YAO
Annual Convention of the Chamber of Thrift Banks
Dusit Thani Hotel, 13 March 2009
Bangko
Sentral
Governor
Amando
Tetangco, Jr.,
Monetary Board Members Raul Boncan and Alfredo
Antonio, Deputy Governor Nestor Espenilla, Jr.; Deputy
Governor Diwa Guinigundo and other distinguished
officials from the Bangko Sentral ng Pilipinas, members
of the CTB Board of Directors, our friends from media,
our sponsors, fellow thrift bankers, guests, ladies and
gentlemen, good morning.
Last year has not exactly been a bed of roses as far as
the global economy is concerned. However, despite
these tough economic times, thrift banks remained
fundamentally
sound
as
indicated
by
increased
deposit generation, steady lending activity and better
asset quality.
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Given our mandate as a Chamber, I submit that we
have responded positively to the needs of both our
member-banks and the National Government.
Allow me to present to you the following major
accomplishments of your association for 2008:
 We actively
participated
and
supported
the
initiative of the industry against the indiscriminate
issuance by the courts of TROs against bank
foreclosures. Thus, CTB hailed the issuance by the
Supreme Court of Administrative Matter No. 99-1005-O adopting additional rules on the issuance of
temporary restraining orders in the foreclosure of
Real Estate Mortgages. Because of this, billions of
pesos in loans can now be recovered by the
lending banks who have been deprived of their
right to collect on the loans which became past
due several years ago.
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 We introduced legislation on Free Patent which will
boost the banking sector through the prospect of
having
more
collateral.
and
borrowers
with
more
secured
By having more titled lands, lending
other
economic
activities
increase,
contributing to the development of not just the
banking sector but of the whole nation as well.
 We played a key role in ensuring the passage of
the Credit Information System Act (CISA).
 We worked for the extension of the exemption of
micro and small-enterprise loans from the required
submission of Income Tax Return and Audited
Financial Statements (which would have expired
last year but has been extended to December 31,
2011)
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 We pushed for the inclusion in the new MSME law
a provision mandating the Bangko Sentral to
“establish an incentive program to encourage
lending to MSME industries beyond the mandatory
credit allocation to said enterprises, such as a
possible
reduction
in
a
bank’s
reserve
requirement;”
 Access of Filipinos to services offered by formal
financial institutions (particularly those residing in
the remote areas) is now less tedious with the
simplification of the ID requirement from clients for
opening of bank accounts, which, through
BSP
Circular 608, has been reduced to just one ID. This
will promote access of Filipinos to, as well as
encourage and facilitate remittances of OFWs
through the banking system.
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 Financial institutions now enjoy a longer period for
submitting
Covered
Transaction
Reports
and
Suspicious Transaction Reports to AMLC.
BSP
Circular 612 allows the extension of the deadline
for submission of CTRs and STRs by all banks to the
AMLC from the original five (5) working days to ten
(10) working days
 Thrift banks are now allowed to provide the
necessary import-export facilities to their SME
clients with the grant of authority to issue Foreign
L/Cs;
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 BSP
Rediscounting
liberalized,
with
Guidelines
the
deletion
have
of
the
been
JSS
requirement, among others.
 Through the initiative and active involvement of the
CTB in the congressional deliberations on the PDIC
bill, the Congressional
Bicameral Conference
Committee, just recently, agreed not to consider
the proposed increase in insurance premium, thus
preventing additional burden or cost to the
banking industry of about P12 billion yearly for
the entire banking industry and more than P1
billion yearly for the thrift banking sector.
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For these and other achievements of your association
during my two-year term as President, I am especially
appreciative of the individual and collective efforts of
my colleagues, the members of the CTB Board, for their
wholehearted
continuing
our
cooperation
action
and
program.
assistance
Through
in
their
cooperation, we were able to undertake activities
beyond our expectation and thereby prove to one and
all that we in the thrift banking sector can face the
rising challenges before us.
My appreciation also goes to all our member-banks for
believing in us and for supporting all of our initiatives. I
also wish to acknowledge the CTB Secretariat for all the
hard work and for their invaluable support.
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Last but not the least, I would like to thank the Bangko
Sentral ng Pilipinas (in particular, Gov. Tetangco and
Deputy Governor Espenilla) for addressing our various
concerns and for trying to always keep an open mind,
while ensuring the soundness and stability of the
industry at all times.
While we traveled some distance, we have much
farther to go. The present leadership of the CTB needs
our support in pursuing the key initiatives we have
begun. Under all circumstances, we must continue to
move forward, for all of us must have the courage and
wisdom to innovate and find opportunities now before
us. During these challenging times, we cannot stop the
slowdown, but we have to move forward. We all know
that this is just a business cycle and we should focus on
surviving this cycle.
Once again, thank you and a pleasant day to all.
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