CitySavings is SB Corp’s Most Valuable Development Partner
City Savings Bank (CitySavings) was awarded as one of the Most Valuable Development Partner of state-owned Small Business Corporation (SB Corp) at Makati Shangri-La, Manila last July 28 during their 26th year anniversary and 2017 Gawad MSME awarding ceremonies.
CitySavings received the award from SB Corp President and CEO Bartholomew Brillo Reynes for its instrumental role in achieving the corporation’s development goals and financial targets last year through its Mandatory Lending Compliance Program. The bank was represented by FVP – Chief Auditor Anna Bella Gatbonton.
SB Corp confers a distinguished partner in development based on the following premise:
· Section 15 of RA 9501 or the Magna Carta for Micro, Small and Medium Enterprises (MSMEs) provides that for a period of ten years, all lending institutions as defined under Bangko Sentral ng Pilipinas (BSP), whether public or private, shall set aside at least 8% and 2% of their total loan portfolio based on their balance sheet as of the end of the previous quarter, for micro and small enterprises, and medium enterprises respectively, and make it available for MSME credit.
· Banks unable to lend out to MSME subscribe to SB Corp’s liability instruments. SB Corp in turn, lends portion of the loan proceeds in its MSME lending programs while the income from the unutilized funds partly to support the capacity building programs. Hence called development partners.
· Awardees in this category are chosen based on the volume of their placement and length of partnership with SB Corp through it MSME Notes and to express their appreciation for the banks’ trust and confidence in the corporation.
Aside from CitySavings, other awardees in this category were Bangkok Bank Public Co. Ltd., Cantillan Bank, Inc., Card SME Bank, Inc., Card Bank, Inc., and Mizuho Bank, Ltd. (Manila Branch).
SB Corp is the result of the merger between the Small Business Guarantee and Finance Corporation (SBGFC) and the Guarantee Fund for SMEs (GFSME), under Executive Order No. 98 issued in November 2001. The corporation is under the policy program and administrative supervision of the Small and Medium Enterprise Development (SMED) Council of the Department of Trade and Industry (DTI), the primary agency responsible for small and medium enterprises in the country. It remains as the National Government’s third largest provider of SME financing, with a lending portfolio of over P2.5 Billion. There are over 2,937 clients, 143 active partner financial institutions. The Corporation has 5 full service area offices, and 18 desk offices strategically located across the country. (Source: www.sbgfc.org.ph)
