ProposedChangesintheEAGLEScoringSystem

MelyAgabin

MABS

2010RBAP‐MABSNa.onalRoundtableConferenceHya=HotelandCasino,ManilaJune2‐3,2010

•  The EAGLE indicators were last reviewed and adjusted in 2005.

•  Changes to Philippine microfinance industry include:

o  Entry of more players o  Stronger competition o  Inflation o  Broad range of experience and years of operation

of rural banks

BSP Camels Ratings Requirement 3.0 3.5

CAR Formula Total capital assets/Total

assets – (cash, COCi,due fr BSP & banks)

BSP-prescribed risk-based method of computation in

Form 11-X162

CAR % Requirement 12% 12%

BEFORE AFTER

New (4 years & below) 1,000 1,000

Young (> 4 to 8 years) 1,000 1,000

Mature (> 8 years) 1,000 2,000

BEFORE AFTER Minimum number of active borrowers by age

Cost/Active Borrower Indicator

Individual = >P1500 Group = >P500

Dropped

Weight for Loan Officer Productivity (Ind.) 5% 10%

Weight for Efficiency 30% 30%

BEFORE AFTER Efficiency

Weight for Loan Officer Productivity (Group) 5% 10%

New (4 years or less) 20% 20%

Young (> 4 to 8 years) 20% 20%

Mature (> 8 years) 20% 20%

BEFORE AFTER Growth

15% 15%

10% 10%

10% 10%

Active Borrowers

MF Loan Portfolio

Active Borrowers

MF Loan Portfolio

Annual Net Microfinance Returns

35% or more 20%

BEFORE AFTER

Earnings

Asset Quality and Liability Structure

No Change

Within 2010 after approval by the MABS Steering Committee

THANK YOU!