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BSP eases on bank’s qualifying capital requirements

Roy — Fri, 08 Apr 2011 05:05:20 +0000

The Bangko Sentral ng Pilipinas (BSP) relaxes on the requirement on the risk-based assessment of qualifying capital instruments. The BSP amended Circular No. 709 on the Definition of Qualifying Capital Instruments under the Risk-Based Capital Adequacy Framework for Banks and Quasi-Banks by removing the loss absorption feature from among the requirements that an external legal opinion must cover.

The BSP said that Circular No. 709 was issued last January in order to align the criteria of qualifying capital instruments of banks and quasi-banks with those of the Basel Committee of Banking Supervision, particularly the standards on the minimum conditions for inclusion of hybrid tier1 and lower tier2 capital. After review however, the BSP found out that the requirement of an external legal opinion on the compliance of lower tier2 both have subordinate and loss absorption features which were not required.

The new provision, which is Circular No. 716 states, “Only the subordination feature is applicable to lower tier2 instruments while the loss absorption feature applies only to hybrid tier1 instruments. Circular No. 716, which made the requirement less rigid, was signed by BSP Governor Amando M. Tetangco Jr. last March 25.

The BSP amended the existing risk-based capital adequacy framework in compliance with Basel 3 provisions to further improve the quality of bank capital. It has disallowed new issuances of upper tier2 capital but eligible capital instruments under hybrid tier1 capital, upper tier2 and lower tier2 capital based on existing regulations that have been issued as of December 31, 2010 would continue to be recognized under their respective categories until such time that further guidance on this aspect was issued by the BSP.

The BSP said last January that is has specifically adopted the Basel 3 criteria for inclusion of non-common equity components in banks’ capital base as basis for determining capital instruments that could be counted as regulatory capital by Philippine banks from January 1 this year and onwards. Basel 3 revises the existing international capital standards, commonly referred to as Basel 2, and represents the core of international banking reforms that were deemed to address the weaknesses that were made evident during the global financial crisis.

“The adoption of the new criteria for capital instruments is part of BSP’s commitment to continuously institute reforms that will promote a stronger banking system,” said Tetangco.

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High risk game did it for Banco Filipino – BSP

Roy — Thu, 24 Mar 2011 12:39:06 +0000

The Bangko Sentral ng Pilipinas (BSP) said that Banco Filipino Savings and Mortage Bank was engaged in high-risk, high-yield schemes to attract depositors. But when the withdrawals started getting heavy, the bank failed to meet its obligations.

“As long as people were putting in money, then the music continued for them,” BSP Deputy Governor Nestor Espenilla Jr. said. “With other banks, the interest rate on deposits was 1, 2 or 3 percent, but Banco Filipino offered 14 percent… the problem is, people forgot the risks involved,” he added.

He also said that BSP had the authority to close banks offering excessively high-risk products. Taking note of the full-page advertisement of Banco Filipino on the newspaper claiming it had P30 billion in assets, Espenilla said that if indeed it had adequate resources, the bank should not have stopped servicing the withdrawals.

“If you are a bank, and you get deposits from the public, then you should have the resources to pay those deposits,” he said. “If the bank did not bring those funds elsewhere, then why was it not able to pay its depositors?”

In its full-page advertisement, Banco Filipino claimed it had inventory of valuable real estate properties which were acquired through foreclosures in the 1980, “These properties are coveted by many groups,” the advertisement claimed.

Listing some of its prime properties, the bank mentioned the following on the advertisement: 84 hectares in Daang Hari in Cavite; 78 hectares in Quezon City; 102 hectares in San Jose Del Monte and Norzagaray, Bulacan; 42 hectares in Naga City; 38 hectares in Pagudpod Beach, Ilocos Norte, and assets in Las Piñas and Parañaque.

“These assets have aggregate value of at least P30 billion. Total deposits are only P15 billion,” the bank said. “The Monetary Board and the Bangko Sentral are fully aware of the valuable assets held by the bank, which are worth much more than its liabilities.”

The Philippine Deposit Insurance Corp. (PDIC), which is the bank’s receiver, will convert these assets into cash to pay the bank’s deposits and creditors.

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PDIC to process payments to Banco Filipino depositors

Roy — Fri, 18 Mar 2011 07:47:26 +0000

After ordering its closure, and putting it under the receivership of the Philippine Deposit Insurance Corporation (PDIC), the next order of business is how to give back the money to the bank’s 177,652 depositors of Banco Filipino Savings and Mortgage Bank. BSP Deputy Governor Nestor Espenilla Jr. said that from the total number of depositors, 97 percent are considered small depositors and covered by the deposit insurance of P500,000 each.

Espenilla said that PDIC immediately took over the head office of Banco Filipino in Makati City on Thursday afternoon in order to secure vital records and documents, as well as prevent further dissipation of the bank’s assets. “The BSP is coordinating closely with PDIC so that deposit insurance can be paid out as soon as possible. In this connection, the condition, coverage, and quality of the records and document of Banco Filipino will be material in ensuring immediate service to depositors,” he said.

The first to be issued payments are depositors with balances of P5,000 and below, which account for about 53 percent of the total account holders. The BSP said these depositors no longer have to file their deposit insurance claims. The PDIC would immediately process and mail payments within the week.

Depositors would be receiving their money in the form of postal money order, which they can convert to cash at postal offices or at branches of Land Bank of the Philippines.

Meanwhile, those with balances above P5,000 will have to file their claims and they will still have to be validated.

“For depositors with account balances of more than P5,000, claim forms will be distributed during Depositors’ Forums to be conducted nationwide next week. During the forums, procedures, instructions and requirements for filing claims will be discussed. The schedule for claims receiving will be announced shortly after the examination of bank records,” PDIC president Jose Nograles said in a statement.

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Local banks help raised P14B for Panay power plant

Roy — Sat, 27 Feb 2010 07:56:18 +0000

Local banks have agreed to help raise and lend the Panay Energy Development Corp. (PEDC) P14-billion for its construction of a 164-megawatt coal-fired power plant in La Paz, Iloilo City. The Panay Energy is owned by George Ty’s Metrobank group, and the loans were arranged by First Metro Investment Corp. (FMIC), the investment banking arm of Metrobank.

The deal is the second-biggest peso-denominated project loan facility to be purely funded by local institutions. The biggest was the P16-billion deal raised by Cebu Energy Development Corp., another Metrobank affiliate, for its power plant in Toledo City, Cebu.

FMIC was able to get the commitment of local banks for a 12-year loan to PEDC. These banks include Allied Banking Corp., Bank of the Philippine Islands, China Banking Corp., Land Bank of the Philippines, Metropolitan Bank and Trust Co., Philippine National Bank, Philippine American Life and General Insurance Co., Rizal Commercial Banking Corp. and the Union Bank of the Philippines. The loans represent about 70 percent of the funding of the project.

PEDC expects the power plant to be finished and already in operation in six to nine months time, and it will use “clean coal” technology. FMIC president Francisco Sebastian said that once completed, the power plant would make brownouts in the Visayas history as the new facility would account for 80 percent of the existing power generation capacity of the island.

Formosa Heavy Industries will be the one to build the new power plant by PEDC. It will also undertake the engineering design and procurement. The Metrobank group hopes to recover the costs from the project over a 25-year period.

PEDC is a subsidiary of Metrobank group’s Global Business Power Corp. Its president Jesus Alcordo said that despite the fuss over renewable energy, clean coal technology was still much more competitive.

The Metrobank group, at present, is still looking for opportunities in power generation, said chairman Antonio Abaca, adding that they prefer investing in new power plants rather than acquire old ones.

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Metrobank grants ATI $250M credit line

Roy — Sun, 21 Feb 2010 04:05:26 +0000

The Metropolitan Bank and Trust Company (Metrobank) has awarded the Asian Terminals Inc. (ATI) credit line worth P250 million. The ATI said the proceeds of the funds would be used to fund its projects in the next five years.

ATI, in its disclosure to the Philippine Stock Exchange (PSE), said it signed an agreement with Metrobank for a five-year revolving committed credit line facility. “The facility is intended as a stand-by fund to finance the project of the company in the ensuing years,” ATI said.

A subsidiary of Dubai Port World, ATI holds a 25-year right to operate container terminal A1 for the port of Batangas. Phase 1 of the Batangas port is already being operated by the company, while the movement of cargo through Phase II is being handled by ATI on a temporary basis. The company believes that once it officially takes over the operation of Phase II, it may be able to market the port better to international ship liners.

The Batangas is being groomed to be an alternative port for shipping lines to the Manila harbor, where the country’s bulk of cargoes pass through. ATI said they have already received intentions from several shipping liners to dock at the Batangas port, although they have not received any commitment from any company yet.

Rivaled only in size by ICTSI, ATI is the country’s leading port operators, and it gets bulk of its revenues from the ports it operates overseas. For the period January to September of last year, the company posted a P828 million net income, 36 percent higher than it has for the same period a year earlier. ATI is listed in the PSE, where its share price remains at P4.15 apiece as of the last trading day of last week.

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RP mining compay gets financing to resume stalled project

Roy — Sat, 05 Dec 2009 08:56:09 +0000

The country’s oldest mining company, Benguet Corp., gets a new leash of life as it entered into a financing agreement with a Chinese company. The listed Benguet Corp. has signed a memorandum of agreement (MOA) with MinMetals International (HK) Ltd. which would allow them to resume the exploration activity at its King-king project in Pantukan, Compostela Valley.

Benguet, in its disclosure to the Philippine Stock Exchange (PSE) said, “The agreement provides that MinMetals will provide the necessary funding through its banking facility to finance the full cost required to bring King-king project into full operation.”

The MOA shall include all advances necessary for halted project, starting from organization, pre-operating material, financial requirements and similar activities that may require project advances. Most especially with regard to all necessary confirmation/validation of project surveys, feasibility study, engineering, procurement and construction of all the needed facilities.

Benguet is the registered operator King-king project covering a 1,656-hectare property in the town of Pantukan, Compostela Valley. The property was said to have a reserve of about 353 million metric tons (MT) of ore at 0.385% copper grade and 0.439 grams of gold pet MT.

Unfortunately, the pre-feasibility studies were suspended in January due to the company’s dispute with its partner and tenement holder Nationwide Development Corp. (Nadecor), who was said to have “grown impatient on project delays.”

Nadecor filed a complaint last year with the government to remove Benguet as operator of the project allegedly due to delays. Benguet vice president for finance and corporate secretary Reynaldo P. Mendoza said they are still discussing with Nadecor and are still open for settlement, which they are pursuing at the moment.

MinMetals, on the other hand, is a subsidiary of China MinMetals Corp., a Global Fortune 500 company. It was founded in 1950 and is primarily engaged in metals and minerals, but is also involved in finance and real estate. It is also among the 44 “key enterprises” in China today.

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SSS adjusts policies, earned P125 M from sale of foreclosed properties

Roy — Tue, 01 Sep 2009 06:31:57 +0000

Its acquired real estate properties all over the country were put out for sale by the Social Security System (SSS). From the sale of these properties, the state pension fund for private employees earned a total of P125.89 million. The real estate properties were acquired from borrowers who were unable to pay their obligations to the agency.

To be able to sell the foreclosed properties, SSS made some adjustment to their policy. SSS president and chief executive officer Romulo Neri said they cut by half the down payment to five percent of the selling price to make it easier for workers to purchase their own homes. Aside from the lowered down payment, SSS offered a maximum payment term of 10 years and buyers can now pay until age 70.

The properties were auctioned by SSS during the governmentâ€™s third national housing fair which offered affordable homes to workers at attractive payment schemes. â€œSSS fully supports efforts to help Filipino families have a house of their own. In less than a year, we sold a total of 221 acquired properties to SSS members and the rest were bought by government employees and uniformed personnel,â€ Neri said.

For properties worth P500,000 and below, the annual interest rates are pegged at six percent, while higher-priced properties have a nine percent interest rate per annum. A 10% discount on the selling price were given to cash buyers, this was double the discount that SSS used to offer in the past.

The SSS has been selling its foreclosed assets at market prices. Approximately half of the properties were located at the National Capital Region. From selling 113 units of houses and lots in the NCR, SSS earned a total of P73.67 million.

For the first half of the year, SSS reported a lower net revenue of P8.37 billion, or P8.38 billion lower than the P16.75 billion in reported for the same period last year. Its total revenue of P47.78 billion in first half of the year also declined by P5.39 billion. For the same period last year, its total revenue was P53.17 billion.

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SSS lowers loan interest rates

Roy — Mon, 10 Aug 2009 00:10:35 +0000

To boost its lending facilities, the Social Security System (SSS) reduced its interest rates on its social and business loans. Romulo Neri, SSS president and Chief Executive officer, said that the adjustment took effect last July 1, following the downward trend in banksâ€™ lending rates.

On loans with a term of one year or less, SSS slashed the interest rates from six percent to 5.5 percent, while those with a term of more than one year to three years, itâ€™s now 6.25 percent from a previous seven percent rate. Loans with a term of three years to five years have also been reduced from 8 percent to 7 percent, for loans with more than five years term, itâ€™s 8.5 percent from a previous 9 percent.

Neri Said â€œWe lowered our interest rates to generate more employment by helping enterprises expand their operations and members set up their own businesses. This also benefits companies affected by the global financial crisis.â€

The pension fund has a Special Financial Program for small and medium enterprises which offers loans of up to P50 million, while large-scale companies can borrow P51 million to P500 million under the SSSâ€™ Industry Loan Program. SSS likewise offers special loans to tourism projects, hospitals and educational institutions, including vocational and technical schools.

The interest rates are fixed for loans with a term of five years or less, while interest rates of those with longer terms will be reviewed after five years, according to the SSS official. To avail of the loan packages, interested borrowers may inquire through the pension fundâ€™s accredited banks, which charge a spread of not more than four percent.

A total of P305 million in social development and business loans have already been released by the agency this year, which brings to P22 billion the total amount of social development and business loans granted by SSS for the last twenty years to small and medium enterprises.

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Customers Receivables Collections – Accounts Receivable Management

PinoyBusiness — Wed, 01 Jul 2009 07:54:48 +0000

Usually, businesses have receivable or those what the customers owe to you. Difficulty collecting payments from these receivables can affect your outstanding accounts as it will bleed out your cash flows. Late payers of receivables are in fact lending your money while being free from interest rates.

Unknowingly, the failed payment of receivables gain the business cost which are not obvious. The uncollected receivables could have been placed in money market instead. Or, these receivables cost you to miss other opportunities which might give you additional income.

Every business must be aware of their receivables or the customerâ€™s credit profile. Dividing the sum of the credit sales to the average receivable balance is the first step to do to identify your average collection period. To better explain this, look at the example.

â€¢ If you have a total sale of 4.5 million with 3.5 million of it on sales account. Then you have 6.5 million as receivable account at start of the month and at 4.5 million at month end. This is how you can compute for your receivable turnovers.

3.5M (sales on account) / 5.5M (starting receivable account (6.5M) plus month end receivable account (4.5M) divided by 2.

The result from this will be 0.6. Divide the number of the months by the result that you get to determine your average collection period days.

30 days / 0.6 = 50 days (your average collection period.

If you have a normal credit term of 30 days subtracted from your actual collection average collection of 50 days, you will have 20 days collection overdue. Multiply this by your daily sales to come up with your total uncollected accounts receivable.

20 x 116666(3.5M divided by 30 days) = 2,333,333(uncollected account receivable)

By multiplying that figure with by the normal rate of return from your business, the amount you will come up with is the cost of the overdue accounts.

Shortening the average collection period will make you manage your cash flow better. To decrease your credit sales, you can apply a stricter credit policy. You can also strengthen your collection efforts to lower your receivable balance. Prioritize your collection efforts focusing more on small accounts with its higher possibility of being collected. Legal actions can be taken against customers with uncollected overdue account.

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Application of the Law of Leverage

PinoyBusiness — Fri, 19 Dec 2008 23:56:01 +0000

Applying the concept of leverage can maximize you chances of fulfilling your business goals. Leverage, the ability to accomplish more by use of a tool than you could through your own direct effort is the most obvious tool in investing. There are few specific ways where you can apply the concept of leverage, particularly online:

First, by crossing the action threshold. When you ask people for a favor, they will respond but itâ€™s far better if they proactively market you and seek out clients for you. It takes a certain degree of trust and relationship strength for them to act proactively, and thatâ€™s when you have leverage. If your relationships arenâ€™t above that “action threshold”, they are not really serving you at full capacity. You need to have high level of credibility in what you are selling in order to achieve this goal.

Second, the power of the majority. Interaction is a form of leverage. Most common example is the public speaking where you can get potential customers of what you are selling.

Third, by content recycling. You can leverage your writing by re-using it for multiple venues. You can use your initial text as a discussion or topic starter in another forum, then post it to your blog, include it in your company’s newsletter, and expand it into an article for publication elsewhere. You get more profit from your initial investment of effort.

Lastly, don’t spread yourself too thin. You need to keep you debt levels under control. Choose carefully your clients and business partners. If you spend too much time doing “bulk networking” or spam, you won’t have enough time to spend developing those stronger relationships that you need to actually get your business done. If you become so over-extended that you can no longer handle your relationships, donâ€™t expect them to provide any returns when you need them.

Online, it is very easy to become over-extended with your relationships because some of the tools make it so easy to make trivial connections with large numbers of people.

And remember, leverage is a powerful concept. Always maintain your focus, donâ€™t get over-extended, and you can expect a great return on your investment of time and energy.

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Scams Insipred by Financial Crisis

PinoyBusiness — Mon, 15 Dec 2008 10:16:03 +0000

Criminals are busy these days, and they have to thank the present global financial crisis for that. The schemes of these creative and resourceful criminals are whatâ€™s featured in the latest issue of Kiplingerâ€™s Personal Finance magazine.

Just as the hard times bring out the best in every individual who are forced to rise to the occasion, so it does too to the criminals. Just think of todayâ€™s headline about the financial crisis and the criminals have found ways to exploit it.

Here are some of them, which are quite familiar to many of many of us, although some are quite new:

Foreign Currency

Banking in on the volatility of the US dollar, the scammers offer outrageous returns on investments in foreign currency. As the Kiplinger magazine said â€œFor example, in May 2008 the SEC charged Las Vegas-based Gold-Quest International with running a Ponzi scheme that raised more than $27 million from 2,100 investors by promising profits of 87.5% from trading foreign currency.

Energy

Because of the soaring prices of energy related products, scammers are pitching in cold-calls offering propositions involving oil-and-gas deals. This scams involved energy-related limited partnership that was conceived in one state, drilling in another, and were sold to investors to still other states. The complicated set-up makes it hard for investors to check out the proposal, tough for law enforcements to identify and expose the fraud.

Kiplinger says â€œIf youâ€™re temped by such a pitch, NASAA suggests you start by checking the registration of the deal. Ask which state the offering is registered, and then contact that stateâ€™s securities agency to confirm that a security is really being offered and whether it can be sold in your state.â€

Debt negotiation

With the bankruptcy rates rising and the average household being hounded by creditors left and right, they often reach out to people offering help with their debts. They pay these companies who promises to make the creditors go away, unfortunately, instead of helping they pull them more into financial ruin.

Debt negotiating companies promises their clients that they could reduce their debts by up to 60%. Unfortunately, they also advised clients not to pay their bills, while they do the negotiation, without telling them that can be sued.

For legitimate credit-counseling agency, Kiplinger advises consumers to check at www.nfcc.org or www.aiccca.org

Mortgage-foreclosure rescue

Just like people who are into regular debts, more than of homeowners are also late on their mortgage payment. In this situation, the panic of the house being foreclosed sets in, without knowing that lenders have programs to help avoid foreclosure. Because of that, they fall prey to scammers who charge $1,000 or more for fraudulent foreclosure-avoidance services.

For mortgage problems, Kiplinger advises to discuss these with the lender. If they canâ€™t help, find a housing-counseling agency which is approved by the US Department of Housing and Urban Development, with website at www.hud.gov for concerns about foreclosure, contact the Hope Now Alliance at www.hopenow.com

Bank phishing

US bank depositors should be feel better now with the deposit insurance being increased from $100,000 to $250,000. But with all the news about bank mergers and an increasing number of banks being under the Federal Deposit Insurance Corpâ€™s â€œwatch list,â€ the increased insurance seems to be insufficient to secure the depositor.

This is where popular phishing schemes come in, the send emails to get private security information including Social Security number, telling depositors that their bank has been acquired, and for safety reasons and continuing service, they will give a link that they would follow to give their information.

For this type of e-mails, you can contact your bank directly for verification or you may just choose to ignore them.

Reverse mortgages

Not really an outright fraud, but the unsuspecting retiree who wants to cash in on their home equity through reverse mortgage might end up paying more than he should. The common problem is that reverse-mortgage applicants are required to buy additional product or service as part of the loan agreement, an example is deferred annuities, an insurance product that come with high fees. Another move is when advisers charge for providing applicants information on reverse mortgage or referring him to lender.

HUD provides mortgage information for free and they prohibit lenders from linking reverse mortgage with other products. For more information, check out their website of you can call 800-569-4287.

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Tips for Safer Online Shopping this Christmas

PinoyBusiness — Tue, 09 Dec 2008 18:36:57 +0000

Christmas shopping can be quite stressful. Just imagine hustling your way through a crowd of holiday shoppers, each one hurrying to get that special gift for their special someone. And what about the line on the cashier when paying? Are you willing to go all through that? If you have done your Christmas shopping earlier, good for you. But most people as it is, are waiting for the last minute to complete buying whatâ€™s on their list â€“ which explains the many crowds in the mall. What can you do to avoid this crowd?

Think online shopping. Yes, thanks to the internet, you can do your shopping right in the safety and comfort of your home. Everything is available to you with just a click of a mouse â€“ clothes, shoes, books, bags, flowers, cellphones and more. And with internet shopping, there is no rush, no long queues, and no worries.

Wait! Do you really have nothing to worry about online shopping? How safe is it really? You know and appreciate the convenience of it â€“ with just a click of a mouse, the item you bought will be delivered, gift-wrapped even, to the person youâ€™re giving your gift too.

So, how do you make online shopping safer and worry-free? Here are some simple tips that you should remember to make your online shopping experience more enjoyable:

Buy from established online shops â€“ just like buying from real shops, you go for those with good reputation, thatâ€™s should also be your concern when buying from â€˜virtualâ€™ shops. Ask for referrals from friends, check the websiteâ€™s background. Read the â€˜About usâ€™ page and the customersâ€™ feedback page if there are any.

Understand properly the ordering and paying procedures â€“ when you have made your choice of items to buy, read clearly the procedures and policies in placing your orders and how you can make your payment. Place your orders only when you are serious in buying.

Are there any policies on returns, refunds and cancellations? â€“ look out for your welfare. Check if the website is accepting returns and/or refunds for defective or broken items. See if they have after-sales support, and if they offer warranty.

Is the website secure? â€“ make sure that the website is secure before placing your order. You can do this by looking for a padlock icon on the lower right hand corner of the screen. Check also the websiteâ€™s URL, it should begin with â€œhttpsâ€ instead of â€œhttp.â€ These are just some of the safeguards to ensure your transactions will not be accessed by hackers.

Paying for your purchases â€“ internet shops usually requires credit cards as the mode of payment. Some entrepreneurs accept bank deposits, cellphone wallet payments and cash on delivery. Surprising as it may seem, credit cards appears to be the best choice for online payment. For one, you can ask for the credit card companyâ€™s help if the items purchased is defective and youâ€™re claiming for a refund. You can also be sure that the payment will reach the vendor. Be sure to print a copy of your payment record just in case you want to file a dispute.

Check the merchandise â€“ upon receipt of the item, be sure to check the merchandize so you can contact the vendor immediately if thereâ€™s a problem.

Give feedback on the vendorâ€™s website â€“ be sure to leave a feedback on the vendorâ€™s website whether your purchases arrived on time or not, and if you have received them in good condition. This is for the benefit of other online shoppers who might want to buy from the same vendor.

If you remember these simple tips, your shopping online experience will be safer and worry free. And remember, other than your credit card number and number, you donâ€™t need to give any other information to the buyer.

One last important reminder â€“ trust your instinct, when you feel like somethingâ€™s amiss with the transaction, donâ€™t continue with it.

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Tips Before You Act as a Guarantor or a Co-maker

PinoyBusiness — Fri, 21 Nov 2008 22:53:25 +0000

People act as a co-maker or guarantor of a loan for various reasons. But mostly it is either they are being asked by a friend who is in dire need of the loan and they canâ€™t say no, or it is because they are really ignorant as far as their participation or liability in the loan is concerned.

As the term implies, when you signed in the documents as a guarantor, it means that you are guaranteeing that the principal will pay his loan and that he is very much capable of paying the same. That is the first part of your guarantee.

However, your signature also signifies that once your friend, relative, co-employee or business partner, who is the principal of the loan, fails to meet his obligations and pay his loan, you as the guarantor agrees to pay for the remaining balance of the loan. You may either be asked to pay one-time or in installments, until the full balance is paid.

There are not a few cases wherein an individual is placed in a situation where he is paying for a loan which he didnâ€™t make, just because he acts as a co-maker or a guarantor without fully understanding the scope of his participation.

Because in most cases, some principals who canâ€™t pay for their loan just disappear and some even goes out of the country, leaving the poor guarantor taking care of their unpaid obligations.

So if you really canâ€™t say no and is obliged to act as a guarantor, be sure to keep in constant contact with principal. Make sure that he meets all his obligationsâ€¦ nag him if necessary, so you can avoid future complications that may arise.

It is also advisable for you to save up during the term of the loan. Save more than what you usually save so that you can (knock on wood), prepare for any eventualities.

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Overview of Banks in the Philippines

PinoyBusiness — Mon, 27 Oct 2008 01:37:10 +0000

The associated director of the ratings agency Standard & Poorâ€™s Agost Bernard has been painting the town red with the glowing remarks of Arroyo administration.

â€œThe Philippines is â€˜luckyâ€™ because they made necessary adjustments and reforms when times were still good. They are now facing global market problems and economic slowdown from considerably improved position compared to what they were three to four years ago.â€ Beranrd said reportedly. His testimonial was pleaseant to the MalacaÃ±angâ€™s ear and another official credited Filipino bankers for the countryâ€™s â€œluckâ€.

In a public forum last week at the Philippine Embassy in Washington D.C. Gov. Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas (BSP) render tribute to the executive of the Filipino banks for helping the Philippines to insulate from the global financial turmoil.

â€œWe really have good bankers, and that is why we are not affected like the other banks in the world.â€ BSP chief said. The typical Filipino banker is â€œconservative, prudent and able to make clear and accurate assessment of risks,â€ he added.

The Filipino bankerâ€™s business model is the kind that involves originate and hold, rather than originate and distribute. â€œItâ€˜s all about greed- once you give it an opening, it will swallow you alive.â€

â€œIf you know how to take advantage of it, greed is good. No one in the Philippine banks would have taken a risk and lent me the money to buy my first new car and a house and become a productive person, it is all because of their greed,â€ said Mon V., a long time Texas resident.

â€œLiving beyond your means is what greed is. â€˜Greed is goodâ€™ statement is valid only when the fundamentals are solid. â€œ Jojo B., a retired executive from one of the countryâ€™s biggest conglomerates said.

Owner of the numerous businesses include promoting alternative energy, Jing M. said, â€œPhilippines have been determined risk management practices by the experiences of the past wherein banksâ€™ capital were eroded from withdrawals and behest loans. In other words, they are now careful because they have been hit hard before.â€œ

Butch S., top executive of a government financial institution has said, â€œOne could sense a feeling of â€˜subdued or suppressed prideâ€™ in our bankâ€™s by not having any exposure to those Wall Street biggies. And I like Governor Tetangcoâ€™s â€˜frozen credit flowsâ€™ phrase. I hope the thawing has started somewhat and it Greed will give way to Trust.â€

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Setting up Your Financial System

PinoyBusiness — Fri, 04 Apr 2008 17:45:14 +0000

When you open your business you should set up a separate business checking account. We recommend selecting a small or local neighborhood bank where your business will be noticed and valued. If youâ€™re happy with your existing bank, you may want to open your business account there because they already know you. Find out what the bankâ€™s policy is on holding checks deposited for, collection, however. Some banks wonâ€™t credit your account for checks over a certain amount until the checks have cleared. This could cause cash-flow problems for you, so accept only immediate access to your funds.

Cash flow is the lifeblood of being self-employed. Making sure you collect what you are owed is like making sure you get your paycheck. The best strategy for having ample cash on hand, of course, is to make sure you have plenty of business. But you also have to make sure you get the money youâ€™re owed in a timely fashion. To keep your cash flowing, get money up front, take deposits, get retainers, and require partial or progress payments. Request payment in cash at the time of sale or delivery of your service. Take bank cards instead of extending credit. Experts claim that offering MasterCard or Visa can increase your business 10 to 50 percent. Unfortunately, most banks will not offer MasterCard or Visa merchant accounts to home-based businesses.

If you must bill your clients or customers, always bill promptly instead of waiting until the end of the month. Also offer discounts of 2 to 5 percent if payment is made within ten days from the date of the invoice. And be sure to act promptly on any overdue account. One of the best ways to make the most of your money is to keep careful track of it, so set up a reliable bookkeeping and accounting system right from the beginning. The purpose of keeping good records is to enable you to know how your business is doing. With good records, youâ€™ll know where youâ€™re making a profit and where you arenâ€™t. Youâ€™ll know what your costs have been, where you can cut expenses, and in which ways youâ€™ll need to modify your plans and projections. Good records also will enable you to take the greatest advantage of allowable tax deductions and will protect you should you be audited.

Today the easiest way to keep simple, accurate records is to use a computer with software like Quicken and or simple Microsoft Excel. Such programs keep your records balance and you can quickly print out income and expense reports. You may also go ahead and take a look at this long list of banks in the Philippines

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“My Phone” MyPhone T22 Duo: First Dual Active SIM

PinoyBusiness — Sun, 06 Jan 2008 21:53:26 +0000

Ever had troubles having to carry two cell phone in your pocket? Seem this mind-set signifies lavishness but instead, this will actually cut your cost down when and save time when trying to contact groups of people in different networks.

A lot of Filipinos use two or more cell phones to save money by using the unlimited text function of all the mobile networks they carry. And just to avoid the inconvenience of changing the SIM or having one network offline and the other active, they use two or more cell phones instead.

Last Sept 2007, MyPhone T22 Duo â€œMy Phoneâ€, a different kind of cell phone was launched by Solid Group, the company who operates MyDestiny, is on its way to its tipping point this 2008. This is the first dual active SIM mobile phone in the Philippines. â€œDual Activeâ€ simply means that the two SIMs remain active at the same time and user doesnâ€™t have to toggle between the two SIMs by turning it off and on.

MyPhone â€œMy Phoneâ€ was specifically designed to get rid of the troubles of bringing two cellphones all at once just to live through the thought of saving text credits in sending SMS to more than one network. Also, this gives convenience to people who have a postpaid line but also wants to get the privilege of sending unlimited text messages.

T22 DUO Specifications:

Network: GPRS/GSM 900/1800
Camera: 2.0 Megapixels CMOS
Memory: 2MB Built-in User Memory
Sound: 2 stereo speakers, 3D-surround effect
Multimedia: MP3/MP4 player/Video Recorder
Expansion: Micro SD/T-flash memory card slot
Standby time: 80 -- 150 hrs.
Talk time: 150 -- 240 mins.
Device Control: Touch screen and Alphanumeric keypad
Messaging: SMS, EMS, MMS, E-mail
Display: 240 x 320 pixels, 2.8″, 262K colors TFT
Connectivity: Bluetooth 1.2 with A2DP, USB
GPRS: Class 12, WAP 2.0 browser
Battery: 1000 mAh
Dimension: 112 x 50 x 15 mm
Weight: 117g

Known Issues and Resolutions:

Memory not Enough
Resolution: Transfer data to the Micro SD Card. Phone memory is limited and needs some buffer.
Sending Business Card
Resolution: Name of sender (selected Nokia models) does not appear when received in the T22. Customers should go to the nearest Solid Service Center for software upgrade.
Globe SIM in SIM 2
Resolution: No signal, Can’t make calls / recieve calls. Send to any Solid Service Center for software upgrade.
Bluetooth Saving to Memory Card
Resolution: Please bring to any Solid Service Center for software upgrade.
2GB Micro SD Card
Resolution: Cannot support more than 1GB. Software upgrade will be available soon.
Bad Reception on SIM 2
Resolution: Type *#84666364*# in idle mode. Select 13th item XIM Engineer mode. Select 2nd item (audio). Select 5th item (Speech enhancement). Select 2nd, Normal mode. Check parameter, 0 should be 1793. Parameter 1 is 3000.

For inquiries please contact:
MR Serve and Trade Company
Other Dealers

Ref: My Phone Philippines, Myphone T22 Duo, My Phone T22 Duo, Myphone T22 Duo Reviews

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Call US and Canada from the Philippines Free!

PinoyBusiness — Sun, 09 Dec 2007 12:49:28 +0000

I have been using this for months now and I would like to share it to you since it will be beneficial to you, for personal use and of course as entrepreneurs in the Philippines, it will be for your business. 20% of my clients are from these countries and without this. I could be spending about a thousand dollars from my monthly revenue for making sales and conference calls without In the early ages of the internet, I have been using the free service DialPad which was aquired by Voice over Internet Protocol (VoIP), which is a technology used in

Many of us here is already familiar with this technology and I know that many are already using VOIP. But only few people know that you can United States and Canadafrom the Philippines Free but not totally and hereâ€™s the catch. You can call toll free numbers in US and Canada without any charges and without using any credit or debit cards. And should you wish calling Non-toll free US and Canada numbers you are charged by Yahoo Voice Phone Out $0.01 per minute, and thatâ€™s 1 US cent a minute or about P 0.50 and that really is cheap. Of course there is a free PC to PC Yahoo Messenger feature but in the field of business, most of my partners and clients want to communicate using the phone since they bring it all the time.

Now, for Yahoo Voice Phone Out, here is what you need. First a broadband connection, a computer and the latest version of Yahoo Messenger. And for calling non-toll free numbers in US and Canada you may need a credit card or a debit card and buy load for as low as $10 or about P500. Here is a list of the charges to other countries.

For people who doesnâ€™t have a credit card you can apply for a debit card under Visa Electron or Mastercard Maestro.

Before I forget, you need to change your Yahoo Voice settings in the latest version of Yahoo Messenger to United States. You may change it under Preferences >> Yahoo Voice.

Also, hereâ€™s another good feature of Yahoo Voice. You can have a local phone number in the United States even though you are in the Philippines in whatever state available using Yahoo Phone In.

Because many people are using this feature worldwide, there are sometime lines congestions so, you may also want to try Skype Out and a comparative review between Yahoo Voice Phone Out and Skype Out. And here are lists of other VOIP Providers.