1. CBL8-O1 CFCT Monitoring 3 September 24, 2009

2. CBL8-O2 Agreements AgreementPoint PersonDeadline 1. Weekly Submission of PAR Report a.Branch level b.Consolidated MCH/JLL Every ___ 2. Monthly FS submission a.Branch level b.Consolidated MCH/JLL Every third Thursday of the following month 3. Simulation of LLP and LLR (following BSP Circular 409) MCH Every third Thursday of the following month 4. Loan Prioritization -emailed already Head/SupervisorsJuly 31 5. DQ Task Force (emailed already)BFCAugust 6 6. Four Saturdays of Past Due Collection (LABAN) August 8, 15, 22, 29 JCT/RMMAugust 27 (for LABAN reports of August 8, 15, and 22) September 3 (for August 29)

3. CBL8-O3 Agreements AgreementPoint PersonDeadline 7. 5 th Saturday for client interview on DQ reasons and solutions (September 5) JCT/RMMSeptember 10 8. Submission of a.Revised CBL and CBS forms b.CFC-Tekton forms currently being used to process existing loans c.Subsidiary ledgers in AO folder (green, orange, red)

4. CBL8-O4 PD Agreements AgreementPoint PersonDeadline 1.Client Exit interview – 10 dropouts per project assistant (PA)October 9 2.Competition Analysis Matrix – 1 competitor MFI per branch manager October 9 3.PRA on Seasonality pattern of income, expenses, savings and credit – 1 FGD per PA October 23 4.PRA on Time Series of Crises – 1 FGD per account officerOctober 23 5.PRA on Life Cycle Events 1 FGD per PAOctober 23 6.Microinsurance research tool – 30 respondents per PANovember 6 7.Remittance research – 5 respondents per account officer plus a table showing the number of remittance receiver clients in each center (see table on the next slide) November 20 8.Impact Assessment – 30 respondents per PADecember 4

5. CBL8-O5 Number of Remittance Receivers Center NameClient Name Number of Remittance Receivers in the HH Occupation of OFW Country

6. CBL8-O6 Competition Analysis Matrix CARDTSPIKMBIRB ParacaleBADEVCO Product (Design) Sikap Loan/ Sagip Loan/ HaPinoy/ Emergency Loan/ Regular Loan General Loan and Special Loan Regular Loan, Housing Loan and Emergency Loan Baranggay Loan and Microfinance Groupings Eligibility Reqmts.Female, with existing business Female, Attend 2-hour per day seminar for 4 days; and after 1 week loan release 3 days seminar 2 hours each day Barangay Loans: for barangay officials only; Microfinance for microentrepreneurs Years in Business no minimum as long as the business is existing None as long as there is a business Residency3 years As long as one is a resident of the area Age18 - 60 years old 18 to 60 years old18 to 65 years old ID documents (SSS, Voter’s ID etc) Nothing needed as long as with good reputation through CI of Technical Officer and Branch Manager before membership; ID picture Baranggay Clearance, Sedula and and ID Picture; TSPI also issues ID to the clients Barangay clearance, birth certificate, marriage contract, sedula, ID picture ID picture Business location Cash flow requirement (Daily, weekly, monthly or seasonal) Conducted during the CI - weekly Determined by account officer during CI No specific requirment; Determining loan amount is based on CI Through CI only and asset assessment, with semblance of project based lending Required to open Savings account Automatic - 40 pesos CBU per week, withdrawable after the first loan cycle but with 20% maintaining balance based on the loan amount released Compulsory savings - 30 pesos per week; 4 pesos per week damayan 40 pesos CBU per week CBU is pre-deducted equivalent to 2.5% of the loan amount Ineligible ClientsMale Loan PurposeAdditional working capital General Loan - for additional working capital; Special Loan for emergency and for multipurpose Additional working capital and start up Additional working capital and start up as long as the client is able to pass the CI Min Loan Amount2000 4,000 to 5,000 in the first loan cycle 4,0002,500 Max Loan Amount 5000 on the first loan; 5000 increment every cycle; up to 50,000 2,000 maximum increment every loan cycle Increment is 50% of the previous loan Loan Duration 23 weeks, but on the 20th week accelerated payment is acceptable 23 weeks, but on the 12th week accelerated payment is acceptable 24 weeks1 year and six months

7. CBL8-O7 Competition Analysis Matrix CARDTSPIKMBIRB ParacaleBADEVCO Loan Duration 23 weeks, but on the 20th week accelerated payment is acceptable 23 weeks, but on the 12th week accelerated payment is acceptable 24 weeks1 year and six months Guarantees required (e.g. Group liability, co- maker, deed of assignment etc.) Family guarantorGroup liability and co-makerGroup guarantee and co-maker Interest Rate30% per annum36% per annum24% to 36% per annum 26% per annum but higher effective interest rate because of pre-deduction Service ChargeNone 7% per loan cycle, pre- deducted Compulsory Savings40 per week30 per week40 per week None because it is pre- deducted - known as pilit impok Other charges (Identify) No memebrship fee, no passbook 25 pesos for ID and passbook60 pesos processing fee 10 notarial fee; CBU, insurance and PhilHealth are pre- deducted Promotion Marketing/Information Dissemination Word of mouth, relatives, get in touch with a key person and then the key person spreads the word and invites other members to join; CARD also conducts orientation Word of mouth AdvertisingNone Place Main office is in Daet and meet in a the house of a designated client Main office is in Daet and meet in center house Head office of the bank is in Paracale Positioning Like after 3 years of membership member could avail scholarship for children - college education, insurance - philhealth; akap CARD - hospitalization benefit - 1800 per year; Likes insurance better than CARD; as long as payment is complete attendance is not required; with additional knowledge on business during business Nothing to worry about because all you have to be mindful of is the loan repayment; Loan processing is fast, all the client has to do is to bring the document requirements and the loan will be released Slogan/vision Corporate Image Product Image Physical Evidence With satellite office in Talisay and CARD Rural Bank in Daet; Office located in Daet Center house is a requirement; 30 minutes for collection and 30 minutes for the meeting With office, account officers often wear jacket People Technical officers are in uniform Process Others 2 resignations no longer allowed to go back; one missed attendance 4 weeks not allowed to withdraw savings and no increase in loan amount; 2 absences 1,000 decrease in loan amount; subsequent loans do not need to have CI likes CARD better Integrate SSS in the product and provide scholarship; Loan release is in the form of check and they encash this in UCPB Every loan cycle, CI is conducted Dislikes Stringent attendance policy and decrease in loan amount Utang na loob factor sa Account Officer - need to feed the AO Clients remit the payment and clients shoulder the expenses like transportation; Center penalty if incomplete paymet 2,800 per center If one group member is delinquent the whole group could not re-loan; Savings of members could not be withdrawn of the group if any of the group member is delinquent

8. CBL8-O8 Competition Analysis Matrix CARDTSPIKMBIRB ParacaleBADEVCO Slogan/vision Corporate Image Product Image Physical Evidence With satellite office in Talisay and CARD Rural Bank in Daet; Office located in Daet Center house is a requirement; 30 minutes for collection and 30 minutes for the meeting With office, account officers often wear jacket People Technical officers are in uniform Process Others 2 resignations no longer allowed to go back; one missed attendance 4 weeks not allowed to withdraw savings and no increase in loan amount; 2 absences 1,000 decrease in loan amount; subsequent loans do not need to have CI likes CARD better Integrate SSS in the product and provide scholarship; Loan release is in the form of check and they encash this in UCPB Every loan cycle, CI is conducted Dislikes Stringent attendance policy and decrease in loan amount Utang na loob factor sa Account Officer - need to feed the AO Clients remit the payment and clients shoulder the expenses like transportation; Center penalty if incomplete paymet 2,800 per center If one group member is delinquent the whole group could not re-loan; Savings of members could not be withdrawn of the group if any of the group member is delinquent

9. CBL8-O9 CBL and CBS Monitoring Character and Capacity Based Lending (CBL) 1.Loan Application Form 2.Client Rating System 3.Character and Background Investigation (CI/BI) 4.Cash Flow Color-coded Bookkeeping System (CBS) 1.Subsidiary Ledger 2.PAR Report 3.Outreach Report 4.Repayment Behavior Tracking System

10. CBL8-O10 CBL and CBS Monitoring Thirteen (14) project assistants (PAs) submitted the Character and Capacity Based Lending (CBL) and Color-Coded Bookkeeping System (CBS) assignments Each PA submitted three (3) folders containing (folder 1) CBL forms including Tekton LAFs, SEDPI LAFs, CIBIs, cash flow forms, and client rating forms; (folder 2) outreach report, PAR report, and subsidiary ledgers; and, (folder 3) repayment behaviour tracking sheets CFC Tekton has adopted their Tagalog version of SEDPI LAF

11. CBL8-O11 Character and Capacity Based Lending Account Officers Accomplished Assignment Remarks 1.Enguerra, Ruben HO Loan Application Form New 5/5 Repeat 5/5 -Some items were left unanswered or unmarked instead of putting N/A if not applicable to the client, i.e. utility bills, school tuition fees, and receipts shown -Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity -Some suppliers do not have contact details Cash Flow 10/10 -Conversion used was not encircled -Some items in the debt capacity analysis were left blank -Inaccurate computations Credit and Background Investigation (CI/BI) 10/10 -Name of supplier interviewed was not indicated -Some answers in character assessment inadequately demonstrate client’s reputation in the community, entrepreneurship, stability and responsibility, i.e. “mabait,” and “ok naman siya.” Client Rating 0/10 -Inaccurate computations

12. CBL8-O12 Character and Capacity Based Lending Loan Application Form Some items left unanswered were the middle initial, age, SLS/center name, loan amount applied for, loan term, last loan amount, business growth, market conditions, receipts shown, rent, utility bills, suppliers, school tuition fees, amount of savings, organizations, spouse’s signature.

13. CBL8-O13 Character and Capacity Based Lending Loan Application Form Some items were left blank instead of answering “n/a” if the item is not applicable or irrelevant to the applicant/client. The proper way of erasing data was not observed. Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity

14. CBL8-O14 Character and Capacity Based Lending Loan Application Form Some descriptions of market conditions do no show supply, demand and competition. Some descriptions of business growth do not show comparison of past and present status. Did not indicate contact details of suppliers but answered “cash basis” instead. There was no probing on some answers, i.e., reason why the receipt was not shown

15. CBL8-O15 Character and Capacity-Based Lending Credit and Background Investigation Was not able to interview suppliers/creditors Some answers in character assessment inadequately demonstrate client’s reputation in the community, repayment behavior, entrepreneurship, stability and responsibility Some items were left blank instead of answering “n/a” if the item is not applicable or irrelevant to the applicant/client

16. CBL8-O16 Character and Capacity-Based Lending Cashflow Conversion used was not encircled Some income sources of household members were not included Some items under the debt capacity analysis were left blank Proper way of erasing data was not observed

17. CBL8-O17 Character and Capacity Based Lending Client Rating System Left some items blank instead of writing N/A if not applicable to client Inaccurate computations

18. CBL8-O18 Color-Coded Bookkeeping AO Accomplished Assignment Remarks 1.Palad, Angelo N Subsidiary Ledger 31/30 -Note: All SLs were classified as green (current loans) -Initial transaction has no PA signature and the amount paid was left blank PAR Report 1/1-No corrections Outreach Report 1/1-No corrections Repayment Behaviour Tracking Sheet 31/30 -Note: All 30 client samples have ongoing first loan cycles

19. CBL8-O19 Color-Coded Bookkeeping Subsidiary Ledger Initial transaction has no PA signature and the amount paid was left blank No balance forwarded Some items were left blank instead of entering “0” or “-” to indicate none

20. CBL8-O20 Color-Coded Bookkeeping PAR Report Most forms were correctly done Proper way of erasing data was not observed Outreach Report New and dropout columns were left blank

21. CBL8-O21 Color-Coded Bookkeeping Repayment Behaviour Tracking System Most forms were done correctly Outstanding balance of savings was left blank

22. CBL8-O22 SEDPI Raquel Reyes Faline Saño

23. CBL8-O23 Maraming salamat po!