CARD Bank, Inc.’s roots can be traced from the Center for Agriculture and Rural Development, Inc. (CARD NGO), which was organized in December 1986 by rural development practitioners as a social development foundation to address the need of a growing number of poor Filipinos in depressed communities.  Discussions on the establishment of a bank started in December 1995.  This was meant to address CARD’s expansion plan of reaching 1 million poor people through savings mobilization.  In August 1997, CARD obtained a license to operate as a rural bank from the Bangko Sentral ng Pilipinas.  On September 1, 1997, CARD Bank officially opened its doors to the public.  Using a phased-approach, four of thirteen CARD NGO branches were transformed into banks.  Presently, CARD NGO and CARD Bank continue to operate as separate entities. 

The CARD group now operates with four mutually reinforcing institutions – CARD NGO, CARD Bank, CARD Mutual Benefit Association, and CARD MRI Development Institute.  The institutions aim to provide the poor with diverse financial and non-financial services.

CARD Bank initially modified the Grameen Bank methodology.  However, in 2004, the bank adopted the use of the ASA methodology.  This methodology is a shift from group to individual liability.  CARD Bank offers loans for use in business ventures, emergency purposes, and housing improvement.  Likewise, it also offers individual loans based on the cash flow of a business.  CARD Bank’s individual loan product was adopted from its partnership with Microenterprise Access to Banking Services (MABS).  In addition to providing loans, it also mobilizes voluntary savings from the public.

CARD Bank operates 15 branches in the provinces of Laguna, Quezon, Masbate, and Marinduque. 

As of December 31, 2004, CARD Bank had 42,041 active clients, 26,034 of whom are active borrowers.  99.7% of borrowers are women.  Its loan portfolio reached PhP 273.9 million.  In addition, CARD Bank had 17,795 active voluntary savers with a savings balance of PhP 108.1 million.

CARD Bank’s group loans target poor women that have per capita income of not more than PhP 1,500 per month, productive assets that are not more than PhP 100,000, and House Index score of not more than 6 points.  Its average loan balance is PhP 10,521, equivalent to 17.2% of per capita GNP.

As of December 31, 2004

Exchange rate: US$1 = PhP 56.27

GNP per capita: PhP 60,859

CARD Bank is the first formal financial institution in the Philippines that was established by a microfinance NGO.  It is a microfinance-oriented rural bank owned by the poor.  On February 14, 2000, ownership was shared among clients.  In addition, CARD Bank is a member of the group known as the CARD Mutually Reinforcing Institutions, together with CARD NGO, CARD Mutual Benefit Association, and CARD MRI Development Institute.  The institutions aim to provide the poor with diverse financial and non-financial services.

CARD Bank’s microinsurance program is handled by CARD Mutual Benefit Association.  CARD MBA is a non-stock, non-profit mutual benefit association formed to promote the welfare of marginalized women; to extend financial assistance to its members in the form of death benefits, medical subsidy, pension and all loans redemption package; and to actively involve the members in the direct management of the association.

As of December 2004, CARD Bank’s assets stood at PhP 326.2 million.  It had liabilities and equity worth PhP 250.8 million and PhP 75.4 million, respectively.  CARD Bank achieved an OSS ratio of 108.7% and an FSS ratio of 105.2% in December 2004.  Outstanding loans at the end of December 2004 reached PhP 273.9 million with PAR > 30 days of 3.8%. (Source: MCPI Database – OSS, FSS, PAR)

As of December 31, 2004

Exchange rate: US$1 = PhP 56.27

By 2009, it is envisioned that CARD Bank will have grown from a rural bank into a development bank to cater to the evolving needs of its clients.  Another challenge faced by CARD Bank is maintenance of the quality of its portfolio while reaching more poor clients through its loans and savings products.

CARD Bank is the first formal financial institution in the Philippines that was established by a microfinance NGO.  It was given a license to operate as a rural bank in August 1997 by the Bangko Sentral ng Pilipinas.  On September 1, 1997, CARD Bank officially opened its doors to the public as a rural bank.  Presently, CARD Bank manages 15 branches with employees totaling 204 as of December 2004.

• CARD Annual Report 2004

• CARD Annual Report 2003

• www.cardbankph.com

• Microfinance Council of the Philippines Database

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