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Highlights of the First MFU Supervisors’ Forum

Highlights of the First MFU Supervisors’ Forum. July 23-24, 2002. Objectives. To provide an opportunity for the MFU Supervisors of MABS-participating banks to share and learn from each other’s experiences

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Highlights of the First MFU Supervisors’ Forum

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  1. Highlights of the First MFU Supervisors’ Forum July 23-24, 2002

  2. Objectives • To provide an opportunity for the MFU Supervisors of MABS-participating banks to share and learn from each other’s experiences • Refresh and update the knowledge and skills of MFU Supervisors on the different aspects of the MABS Approach

  3. Day One - Morning PDA technology • Overview of the PDA technology • Downloading demo at RBDI • Field collection demo using the PDA • Uploading and reports generation demo at the end of the day

  4. Day One - Afternoon MABS Program Updates • Presentation of each bank’s performance # of active borrowers, loan portfolio and PAR level ( symbols of happy & sad faces) • Workshop, sharing of each other’s techniques and difficulties in fighting loan delinquency.

  5. Day One - Afternoon MABS Program Updates Factors causing high PARR level • AO’s doing short-cuts in processing loans • Lack of focused supervision • Rapid expansion • Poor cash flow assessment • FRAUD committed by AO’s • Poor client selection

  6. Day One - Afternoon MABS Program Updates Techniques to bring down PARR level • Bring delinquent clients to barangay court • Create “task force” to intensify remedial management • Focused supervision • Good CI/BI

  7. Day One - Afternoon MABS Program Updates Operations Review Highlights Strengths & weaknesses in areas of policies & procedures, loan documentation and Internal Controls

  8. Operations Review Highlights • Inconsistencies/shortcuts in loan processing • Changes in procedures not documented • Tolerance to loan delinquency getting higher • Posting of loan payments 10 days late

  9. Operations Review Highlights • Restructuring very rampant, no policies in place • AO’s ask clients to sign blank withdrawal slips • AO’s keep clients’ passbooks all the time • Loan payments not reversed for bouncing check payments

  10. Operational Review Highlights • Some borrowers have multiple loan accts • Very loose controls of Receipts • Late collections kept by AO’s • AO’s can waive penalties w/out approval • MFU staff keep postdated checks • Spouses’ signatures forged

  11. Day One - Afternoon • MIS problems and causes of delay in submission of MABS reports • TNA highlights

  12. Day Two - Morning Workshop to review: • CI/BI, Cash Flow Standard Procedures for new and repeat loans (checklist) • Parts of the credit process that they no longer do, and the reason for not doing it • Techniques to validate accuracy of amounts declared in the cash flow computation

  13. Day Two - Afternoon • Workshop to discuss “Warning Signals” in Client Selection (what type of clients to avoid) • How to tell if client is telling the truth during interview • Household indicators in assessing clients • Indicators of client’s business condition

  14. Day Two - Afternoon • Group dynamics on the output of the workshop • Action Planning

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