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Assessment and Training-Workshop Offered to MABS Participating Banks

Management and Recovery in a Time of Disaster. Assessment and Training-Workshop Offered to MABS Participating Banks. Training Objectives. Assist participating rural banks to assess impact of natural disasters on their operations

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Assessment and Training-Workshop Offered to MABS Participating Banks

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  1. Management and Recovery in a Time of Disaster Assessment and Training-Workshop Offered to MABS Participating Banks

  2. Training Objectives • Assist participating rural banks to assess impact of natural disasters on their operations • Present options/ measures to manage possible cash flow demands and liquidity risks • Present options/ measures to ease the burden posed by the loan on existing clients, while continuously pursuing loan recovery to protect portfolio quality and growth

  3. Training-Workshop Agenda I. Workshop 1 – Impact of Disaster on Banking Operations – Liquidity & Delinquency Management II. Framework for Disaster and Risk Management III. Loan portfolio management and recovery IV. Workshop 2 – Options for Managing Risks V. Next Steps

  4. Workshop 1 Instructions: 1. Using workshop handout 1, discuss with your group your observations on the impact of typhoon Reming and measures which your bank has put in place. 2. After completing the workshop handout, write the group output in a manila paper. 3. A few groups may be asked to present their output to the big group.

  5. Important Considerations When Choosing Disaster Response/Options Liquidity RISKS Income Portfolio Quality (PAR)

  6. A Framework for Disaster Risk Management CLIENTS RISKS BANK RISKS Repayment Savings W/drawal • Portfolio Quality • Liquidity • Property • Staff 1. Property 2. Business/Farm 3. Lives 4. Health EMERGENCY RESPONSE AND RECOVERY TOOLS

  7. A Framework for Disaster Risk Management Clients 1. Temporary inability to earn income 2. Increased basic expenditures 3. Damage to or destruction of income-generating assets 4. Damage to or destruction of household assets Emergency Responses 1. Retrieve/salvage whatever assets left 2. Rely on relief assistance from govt./other agencies 3. Withdraw from their savings 4. Loan restructuring/New loan/ Emergency loan D I S A S T E R S I M P A C T Banks On Liquidity 1. Temporary decline in inflows from affected clients 2. Temporary increase in outflows to affected clients On Portfolio Quality 3. Medium-term decline in repayment rates and/or new loan demand Emergency Responses 1. Flexible savings policy 2. Maximize available rediscounting/ credit lines 3. Moratorium on lending 4. Loan restructuring/ Refinancing

  8. Impact of Disaster to Affected Clients & Banks

  9. Disaster Response Measures/ Options • Liquidity management measures • Draw on available credit lines • Request for flexible conditions on existing loans from fund providers • Provide incentives to bigger depositors

  10. Disaster Response Measures/ Options • Modified Policies and Procedures • Imposing a moratorium on lending • Restructuring loan • Refinancing • Write-off • Product Modifications • Withdrawal of compulsory savings • Provide emergency loans • Shift from group-based liability to individual liability during a disaster

  11. Disaster Response Measures/ Options • Non-Financial Emergency Responses • Training on Risk/Disaster awareness • Information Dissemination • Distribution of emergency/relief supplies

  12. Basic Consideration Before Choosing Options • Conduct Portfolio Review and on-site field validation (use MABS Post-Disaster Survey Tool) • Current vs. Delinquent loan account • New vs. Repeat loans • Determine risk exposure against savings balance • Ascertain damage to business and household and whole community • Ascertain client’s ability to re-establish business • Ascertain other sources of income

  13. Basic Consideration Before Choosing Options • Assess liquidity position • Check readiness of MIS • Can existing MIS handle/capture nuances of the various response measures/options

  14. Workshop 2 Instructions: 1. Using workshop handout 2, discuss in your group what are the disaster response measures/options that you think are applicable to the situations of your clients. Also provide what criteria or considerations you will need to use in each of the options.

  15. Disaster Response Measure/Option Modification of Policies and Procedures

  16. Disaster Response Measures/Options

  17. Disaster Response Measures/Options

  18. Disaster Response Measures/Options

  19. Disaster Response Measures/Options

  20. Disaster Response Measures/Options

  21. Disaster Response Measures/Options

  22. Disaster Response Measures/Options Product Modification

  23. Overview of Disaster Response Measures

  24. Disaster Response Measures/Options

  25. Overview of Disaster Response Measures Non-Financial Emergency Responses

  26. LESSONS LEARNED And Future Plan of Action to Ensure Preparedness

  27. LESSONS LEARNED And Future Plan of Action to Ensure Preparedness

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