A top official of the Land Bank of the Philippines yesterday urged rural banks in the country to synergize their forces with their institution to bring development in the countryside.

Stella Maris Yusay, first vice president for Visayas operations, was the keynote speaker in behalf of LBP acting president Gilda Pico, at the opening program of the 2006 Visayas Management Conference yesterday at the L'Fisher Hotel in Bacolod City.

There are more than 800 countryside banks, or more than 1,800 branches covering over 85 percent of the municipalities in the Philippines.

Through their services, Yusay said, rural banks help farmers and fisherfolk, micro-entrepreneurs and small businessmen to expand production and grow their businesses and in the process, create more jobs in the countryside.

She added that, more importantly, rural banks address the credit needs of small borrowers who are often considered as "high-risk" and "high-cost" clients by commercial banks.

"In essence, rural banks help transform the underprivilege sector into self-reliant and productive members of the community," Yusay said.

Statistics show that to date, LBP remains the biggest net funds provider for countryside financial institutions.

In 2005, it has accredited 453 rural banks with a total credit line of P9.5 billion and total availments of P9.3 billion.

Seventy-three accredited rural banks in the Visayas have so far, availed of P1.1 billion last year, benefiting more than 22,000 borrowers.*NLG

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