COUNTRY BUILDERS BANK, INC. (CBB) 2017 ANNUAL REPORT · 1 COUNTRY BUILDERS BANK, INC. (CBB) 2017 ANNUAL REPORT Country Builders Bank, Inc. (A Rural Bank) (CBB) started operations
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COUNTRY BUILDERS BANK, INC. (CBB)
2017 ANNUAL REPORT
Country Builders Bank, Inc. (A Rural Bank) (CBB) started operations as a newly merged bank
last November 7, 2017 after it merged with First Macro Bank, Inc. (A Rural Bank).
CBB now has a combined branch network of thirty six (36) branches and micro banking offices
majority of which are located in Metro Manila and the surrounding provinces of Cavite, Laguna,
Rizal and Bulacan areas.
The Bank serves a broad and diverse clientele including micro, small and medium enterprises
(SME), agricultural businesses, businessmen, professionals, teachers, vendors, employees and
households in its respective communities.
CBB Vision:
• To be the leading community bank in the country
CBB Mission
• To provide excellent banking and financial services
• To create better communities by nurturing entrepreneurs
• To cultivate commitment to excellence whereby employees can learn, grow and be self-
fulfilled
• To optimize earnings for the benefit of all stakeholders
Core Values
Excellence. To ensure excellence in service and banking competency to attain client trust and
loyalty
Integrity. To honor the trust of and the fiduciary responsibility to clients
Innovative. Matching banking products and services to clients’ needs
Professionalism / Teamwork. A team of committed employees instilled with passion, dedication
and pride in their work
Service-Oriented. To integrate the bank within the communities it serves
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Message from the President:
Country Builders Bank, Inc. (CBB) has ventured once again into another major milestone
exactly five(5) years from the date of consolidation of Country Rural Bank of Taguig, Inc. and
Builders Rural Bank, Inc. on November 5, 2012.
On November 7, 2017, CBB started operations as a merged bank with another rural bank, First
Macro Bank, both with more than 50 years of existence. The merged bank is now the largest
rural bank in Metro Manila with 36 branches and MBOs, more than half of which are located in
Metro Manila, thus contributing greatly to the financial inclusion advocacy of the BSP in the
densely populated Metro Manila areas catering to the CDE socio economic classes of the
economy.
The merged bank now covers additional areas in Metro Manila and the surrounding areas of
Cavite, Laguna, Rizal and Bulacan with a combined workforce of 369 officers and employees.
CBB's results of operations in 2017 include the 2017 operations of FMB after the banks merged
in November, 2017.
Financial Highlights (Based on Audited FS)
Account 2017 2016 Remarks
Total Assets 2,800,645,665 2,062,628,009 Increased by 36%
Loans and Receivables – Net 1,070,201,284 776,770,326 Increased by 38%
Total Deposits 2,365,013,362 1,575,034,783 Increased by 50%
Net Income 28,698,336 21,412,322 Increased by 34%
Return on Equity 9.55% 8.17% Decreased by 1.38%
Financial Summary
Minimum Required Data Parent Bank (Solo)
2017 2016
Profitability
Total Net Interest Income 101,315,615.00 95,272,586.00
Total Non-Interest Income 95,080,772.00 75,352,166.00
Total Non-Interest Expenses 150,858,502.00 124,904,734.00
Pre-provision profit 45,537,885.00 45,720,018.00
Allowance for credit losses 9,434,527.00 13,893,000.00
Net Income 36,103,358.00 31,827,018.00
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Selected Balance Sheet Data
Liquid Assets 1,420,773,252.00 1,002,427,207.00
Gross Loans 950,607,428.00 673,386,426.00
Total Assets 2,800,645,665.00 2,062,628,099.00
Deposits 2,365,013,362.00 1,575,034,783.00
Total Equity 327,053,978.00 274,124,575.00
Selected Ratios (108,578,325.00) (213,468,741.00)
Return on Equity 9.55 8.17
Return on Assets 1.18 1.07
Capital Adequacy Ratio 17.58 18.27
Others
Cash dividends declared 5,136,566.00 -
Head Count
Officers 60 60
Staff 309 304
In 2018, CBB will focus on the structural framework of the bank, especially, IT. The IT plans
for the merged bank have been greatly challenged with the BSP approval on the use of cloud
technology for banks. The actual integration of the IT systems of the merged banks and the
transfer of the disaster recovery sites have been greatly affected by the availability of cheaper
and more flexible technology brought about by the cloud technology.
We have sent a request to the BSP for the use of the cloud technology through Amazon web
service for our CASA, loans and accounting system..
In 2018, emphasis on increasing the loan portfolio of the bank will be done. More account
officers will be hired and continuous training will be done for all account officers and branch
manager
In 2017, one of the branch site of CBB, the Pembo branch, has been declared in the fault line of
Makati. This will be transferred to another area in Pembo which is not in the fault line
for earthquakes.
Our greatest challenge now is the competition on loans from commercial banks. Commercial
banks are approaching our existing borrowers with lower rates of interest. CBB has met this
challenge by matching the interest rates offered by these banks. This has lowered the bank's
profit margins so the bank now is on an aggressive campaign to increase its loan portfolio by
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giving incentives, developing and training more account officers and reducing the processing
time for loans. In fact the credit committee meets almost daily as needed.
Board of Directors
The operations and management of Country Builders Bank is anchored on a unified commitment
to good corporate governance. It is led by a functioning Board of Directors and Management
team with competence, integrity and dedication, fully embracing the Bank’s mission, vision, and
values and guided not only by the Bank’s principles, but also by the principles of good corporate
governance – integrity, fairness, accountability, and transparency. Accountability of the Board of
Directors and Management are in place and implemented in accordance with high ethical
standards and strict regulatory compliance. The Board is attuned with the reforms imposed by
BSP and other regulators to elevate corporate governance practices.
The authorities of the members of the Board are derived from the Articles of Incorporation, and
the relevant sections of the Manual of Regulations (MORB) issued by the Bangko Sentral ng
Pilipinas (BSP), as the lead regulator for banks. The role of the Board and its committees are
well described and understood by the members that guarantee smooth performance of their
collegiate and individual duties and responsibilities. The Board is responsible for ensuring that
management maintains an appropriate system of internal controls which provides assurance of
effective operations, internal financial controls and compliance with rules and regulations.
The Bank considers that it has a robust governance framework with a clear organisational
structure, well defined, transparent and consistent lines of responsibility and effective processes
through which to identify, manage, monitor and report risks to which it is or might be exposed. It
has appropriate internal control mechanisms, including sound administrative and accounting
procedures and Information Technology (IT) systems and controls.
o The Role of the Board
The Board’s role is to provide leadership of the Bank and promote its vision, values, culture
and behaviour, within a framework of prudent and effective controls, which enables risk to
be assessed and managed. The Board also ensures that its obligations towards its
shareholders and other stakeholders are understood and met.
The Board is accountable for ensuring that, as a collective body, it has the appropriate skills,
knowledge, diversity and experience to perform its role effectively. The Board is
collectively responsible for the long-term success of the Bank; it sets the Group’s strategic
objectives, integrates sustainability into the way business is conducted, ensures that the
necessary financial and human resources are in place for the Group to meet its objectives
and reviews management performance. Furthermore, the Board has the responsibility to
present a fair, balanced and understandable assessment of the Company’s position and
prospects, including annual and interim financial statements and other price-sensitive public
reports and reports required by regulators and by law.
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The Board is the decision-making body for all matters of importance that are significant to
the Bank as a whole because of their strategic, financial or reputational implications or
consequences. The appointment of individuals who may have a material impact on the risk
profile of the Bank is also subject to Board approval. Their appropriateness for the role is
monitored on an on-going basis. The Board is also responsible for determining the nature
and extent of the principal risks it is willing to take in achieving its strategic objectives and
ensuring the maintenance of an effective risk management and oversight process across the
Bank.
BOARD COMPOSITION
Board of Directors Share
holdings
%
Holdings
No. of
Years as
Director
1 Dakila B. Fonacier, CPA (Chairman)
Non-Executive
244,929 14.11% 2
BSBA - Accounting
MBA - Northwestern University (Chicago, USA)
Philippine Stock Exchange
Director
May 2011 – present
Securities Clearing Corporation of the Philippines
Independent Director
May 2011 – present
Bureau of Internal Revenue
2000 – 2001
Department of Finance – Undersecretary
2000 – 2001
2 Rodrigo B. Supeña, CPA 126 .01% 5
Member
Non-Executive
BSC – Accounting
MBA – Ateneo
Country Builders Bank, Inc.
– Chairman 2012 – 2015
Land Bank Leasing Corporation
– Director 2000- 2011
Land Bank (Various)
– SVP 1997 – 2005
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Bank of the Philippine Islands
– VP 1994 – 1996
3 Ma. Corazon L. Miller, CPA 88,175 5.08% 5
Member
Executive
BSBA – Accounting
MBA – UP
UP Business Research Foundation Trustee
Country Rural Bank of Tagig, Inc. – President
University of the Philippines
– Senior Lecturer 1971 – 1979
Builders Savings & Loan Association Inc.
– President 1991 – 1997
CCH Computax, Inc.
– Tax Analyst (USA) 1987 – 1990
4 Renato R. Reyes, CPA
Member
86,120 4.96% 5
Non-Executive
Bachelor in Business Administration
MBA – UP
Marie France Group of Companies
– Director 1988 to present
Miracle Soybean Food International Corp.
– President / Chairman 2010 to present
Taganito Mining Corporation
– President 1986 – 1991
5 Celenita V. Francisco Member 50 .00% 5
Executive
BSBA – Accounting
MBA – Ateneo
CARD SME Bank
– Consultant of IFC 2009 – 2011
Philippine Deposit Insurance Corp.
– Consultant 2008 – 2010
Department of Finance
– Chief of Staff 1992 – 1996
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6 Edgardo L. Valenzuela, Jr. 22,043 1.27% 4
Member
Executive
B.S Electrical Engineering
M.S.A. – Ateneo
Efficio Technology Services – 2013
Builders Rural Bank, Inc. 2006-2012
I Link – Pinoys
– Managing Director 2005 – 2006
Accenture
– Senior Software Engineer 2003 – 2004
Wireless Internet Solutions
– Senior Analyst 2000 – 2003
7 Benjamin C. Arciaga, CPA
Member (Independent)
350 .02% 4
Non-Executive
BSBA – Accounting
Banco Alabang
– Credit Risk Officer/ Director 2013
Banco Alabang, Inc.
– VP/Director 1997 – 2013
Bangko Sentral ng Pilipinas
– Bank Officer II 1974 – 1997
8 Ramon C. Reyes, CPA
Member (Independent)
50 .00% 5
Non-Executive
BS Commerce – Accounting
MBA – PCU
Filipino Savers Bank (A Rural Bank)
– Independent Director 2004 – 2011
Bangko Sentral ng Pilipinas
– Manager II 1978 – 2003
9 Carmelita G. Salgado, CPA
Member (Independent)
85 .01% 1
Non-Executive
BS Business Administration
MBA – Australia
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Credit Information Bureau, Inc. (CIBI) Foundation, Inc. – Treasurer/Trustee 2017
Phil. Foundation for Cultural & Educational Development, Inc.
– Vice President
Parents for Education Foundation, Inc. – Exec. Vice President 2008 – 2017
University of the Philippines Business Research Foundation, Inc. – Trustee
BOARD LEVEL COMMITTEES
Board And Management Committee Number/ Composition Of Committee Members
Audit Committee 3 Board Members
At Least Two (2) Independent Directors
Risk Management Committee 3 Board Members
Corporate Governance Committee 3 Board Members
At Least Two (2) Independent Directors
Credit Committee 2 Board Members
Bank Manager/Designated Officer
Additional 1 BOD As Alternate Member
Nominations Committee 3 Board Members
One (1) Independent Director
Executive Committee 3 Board Members
EXECUTIVE COMMITTEE
The Executive Committee of the Bank has the power to direct the overall business of the Bank
including the review and approval of proposals and transactions related to credit in amounts
within the limits of its delegated authority.
AUDIT COMMITTEE
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The Committee assists the Board in the effective discharge of its responsibilities in the areas of
statutory reporting, internal control systems, risk management systems, insurance and legal
proceedings, and the internal and external audit functions.
It reviews and prepares the internal audit program. It monitors and evaluates the adequacy of the
Bank’s internal control systems and procedures and makes recommendations to further
strengthen the systems and procedures.
RISK COMMITTEE
The Committee exercises the oversight function over risk management activities of the Bank. It
reviews the Bank’s management framework, assesses to determine the adequacy of its risk
management, monitors the Bank’s risk management profile and ensures that the risk strategies
are being complied with.
CORPORATE GOVERNANCE
The Corporate Governance Committee assists the Board in fulfilling its corporate governance
responsibilities, and ensures the Board's effectiveness and due observance of sound corporate
governance principles and guidelines, and its oversight of the Bank's corporate governance with
respect to laws, rules and regulations on corporate governance issued by the government
regulatory bodies.
CREDIT COMMITTEE
The Committee assist the board in fulfilling its responsibilities by providing oversight of the
credit and lending functions and strategies and objective of the bank, specifically:
• Oversight of the credit risk management of the Bank, including reviewing internal credit
policies and establishing portfolio limits;
• Reviews the quality and performance of the Bank’s credit portfolio; and
• Approves loans at thresholds determined by the Bank’s Credit Policy Manual.
o Meetings of the Board of Directors
The Board meets on a monthly basis and has a formal schedule of matters for consideration.
The Board receives regular reports and presentations from the Bank’s senior management on
strategies and developments in operations. Regular reports are also provided on existing and
emerging risks, risk management, credit exposures and the loan portfolio, asset and liability
management, liquidity, litigation, compliance and reputational issues.
During 2017 the Board held 15 meetings. Further details on the number of the meetings of
the Board and its committees and attendance by individual Directors are set out below.
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Name of Director Designation Attendance %
Dakila B. Fonacier Chairman 13 87
Ma. Corazon L. Miller President 15 100
Renato R. Reyes Member 14 93
Rodrigo B. Supena Member 13 87
Celenita V. Francisco Member 15 100
Edgardo L. Valenzuela, Jr. Member 15 100
Benjamin C. Arciaga Member 15 100
Ramon C. Reyes Member 15 100
Julieta L. Santos (6 months) Member 6 Resigned
06/30/17
Carmelita G. Salgado (6 months) Member 7 88
Board and Management Committees:
1. Executive Committee:
Name of Director Attendance %
Ma. Corazon L. Miller Chairman 10 100%
Rodrigo B. Supena Member 8 80
Edgardo L. Valenzuela, Jr. Member 10 100
Anna Liza B. Santiago (Non-Director) Member 10 100
2. Credit Committee:
Name of Director Attendance %
Ma. Corazon L. Miller Chairman 118 95%
Edgardo L. Valenzuela, Jr. Member 93 75
Celenita V. Francisco Alternate Member 93 77
Imee C. Ramuyan (Non-Director) Member 113 91
3. Risk Management Committee:
Name of Director Attendance %
Ramon C. Reyes Chairman 9 100%
Celenita V. Francisco Member 9 100
Renato R. Reyes Member 7 78
Benjamin C. Arciaga Alternate Member 9 100
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4. Audit Committee:
Name of Director Attendance %
Benjamin C. Arciaga Chairman 12 100%
Ramon C. Reyes Member 12 100
Rodrigo B. Supena Member 10 83
5. Corporate Governance Committee:
Name of Director Attendance %
Ramon C. Reyes Chairman 4 100%
Dakila B. Fonacier Member 3 75
Benjamin C. Arciaga Member 4 100
6. Nomination Committee:
Name of Director Attendance %
Ma. Corazon L. Miller Chairman 1 100%
Ramon C. Reyes Member 1 100
Renato R. Reyes Member 0 0
Celenita V. Francisco Member 1 100
7. Assets & Liabilities (ALCO) Sub-Committee:
Name of Director Attendance %
Ma. Corazon L. Miller Chairman 9 100%
Rodrigo B. Supena Member 7 77
Anna Liza Santiago Member 9 100
Principal Officers
1 Ma. Corazon L. Miller, CPA
BSBA – Accounting
MBA – UP
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President
(see above positions)
2 Anna Liza B. Santiago, CPA
BSBA – Accounting
Senior Vice President – Operations
Country Rural Bank of Tagig, Inc.
– (Various) VP Operations 1997 – 2012 Builders Savings & Loan Asso. Inc.
– Comptroller 1996 – 1997 ABS Holdings, Inc.
– Chief Accountant 1993 – 1996 Sycip, Gorres, Velayo & Co.
– Audit–in–Charge 1990 – 1993
3 Charles E. Miller
BBA – Accounting
MSA – Accounting
E. Michigan University
MSBA Marketing - USC
BS - CIS – Washburn University
Senior Vice President – Support Services
Country Rural Bank of Tagig, Inc.
– Consultant – 2004 – 2012 CCH Computax, Inc.
– Marketing Director – 1987 – 1991 Marvin Maydew CPA & Associates
– Auditor 1981 -1987
4 Edgardo L. Valenzuela, Jr.
B.S. Electrical Engineering
M.S.A.–Ateneo
Vice President – Loans
(see above positions)
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5 Reginald L. Ocampo
BSC – Applied Economics
MBA – Loyola Marymount University
Vice – President – Microfinance/HRD
First Macro Bank, Inc.
– Various – President 1996 – 2016
7 Anastacia M. Reyes
BSC- Accounting
Chief Compliance Officer
Country Rural Bank of Tagig, Inc.
– Various Compliance Officer 2010 -2012 Builders Rural Bank, Inc.
– Various – Corporate Secretary 2006 – 2010 First Macro Bank, Inc.
– Various – VP – HR & Customer Service 1992 – 2006 Rural Bank of Pateros, Inc.
– Manager 1986 – 1992
8 Rowena V. Huidem
BS – Accounting
Comptroller
Country Rural Bank of Tagig, Inc. – Comptroller – 2012
Country Rural Bank of Tagig, Inc. – Senior Accountant – 2006 – 2012
9 Ronald T. Verzosa
BS – Accounting
Internal Audit Quality Assurance Manager
Fundline Financing Corporation
– Financial Audit Officer 2010
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Tropical Disease Foundation, Inc.
– Internal Audit Quality Assurance Supervisor 2006 – 2010 Phoenix Publishing House, Inc.
– Internal Audit Asst. 2005 – 2006
Merchants Bank
– Branch Accountant 1999 – 2004
SELF ASSESSMENT;
The Board of Director conducts annually a self-assessment of their performances for the
preceding twelve (12) months period using the self-assessment form.
The self evaluations are summarized and rated. The scores and ratings serve as a tool to
check the strength and weaknesses of the members of the Board of Directors.
RELATED PARTY TRANSACTION
The main objective of the policies on RPT is to provide the management with the proper and
standard guidelines in the appropriate exercise of its oversight functions and in the
implementation of effective control systems for managing the bank’s exposures to Related Party
Transactions (RPT) as these may potentially lead to abuses that are disadvantageous to the bank
and its depositors, creditors, fiduciary clients and other stakeholders.
1. RPTs are conducted in the regular course of business and not undertaken on more favorable
economic terms than similar transactions with non-related parties under similar
circumstances.
2. All Directors, Officers and Employees of the Bank shall not engage in any transaction that
may be construed as having conflict of interest with the bank. The members of the board,
stockholders and management shall disclose, to the board whether they directly or indirectly
or on behalf of third parties, have a financial interest in any transaction or matter affecting
the bank. In case of doubt, any material matter that poses conflict of interest shall be vetted
by the Corporate Governance and Chief Compliance Officer and endorse to the Board of
Directors for approval.
DIVIDEND POLICY
For the year 2017, CBB declared 7% and 2% for cash dividends to preferred shareholders,
private and government respectively.
CONSUMER PROTECTION PROGRAM
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CBB recognizes the basic rights of its customers which are directly relevant to the business of
delivering financial products and services as it is duty bound to guarantee protection and defend
them.
In the process, the Board approved and implemented its Consumer Assistance Management
System (CAMS) to guarantee effective implementation and proper handling of consumers
complaints/requests and their faster resolution and reporting. The Board created the Consumer
Assistance Group headed by a Consumer Assistance Officer (CAO) to implement this CAMS.
The CAO reports directly to the Board of Directors through the Risk Management Committee
(RMC).
CONSUMER ASSISTANCE
The Board of Directors is responsible for developing the bank’s consumer protection strategies
and establishes an effective oversight over the Bank’s consumer protection program. It is
primarily responsible for approving and overseeing the implementation of the consumer
protection policies as well as the mechanism to ensure compliance with the said policies. It is
responsible for monitoring and overseeing the performance of senior management in managing
the day to day consumer protection activity. These functions and other duties and
responsibilities are delegated to the Marketing Department.
The Marketing Department is responsible for the implementation of the consumer protection
policies approved by the Board, manages the day-to-day consumer protection activities of the
Bank and other duties and responsibilities delegated by the Board.
This Consumer Assistance Group is headed by concurrently the Credit Risk Officer.
NOMINATIONS COMMITTEE
The Nomination Committee handles the selection of Directors. The Nomination Committee is
composed of four (4) Directors.
RETIREMENT:
The Bank has following retirement options for its officers and employees:
• Normal Retirement Age – upon reaching the age of 60 unless opted to defer retirement
until reaching 65 years old or anytime after having computed 35 years.
• Mandatory Retirement – upon reaching the mandatory age of 65 years old.
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Risk Management
CBB, as a financial institution, is in the business of risk taking. Its activities expose the Bank to
credit, market, liquidity and operational risks. Credit risk emanates from exposures to borrowing
customers, counterparty risk in trading activities, and contingent credit risks arising from trade
finance exposures. Market risks covers price, liquidity and interest rate risks in the Bank’s
investment portfolio.
Liquidity risk may arise from shortage in funding and/or lack of market for sale of its assets.
Operational risk covers potential losses other than market and credit risk arising from failures of
people, process, systems and information technology and external events.
The ability to manage risks effectively is vital for the Bank to sustain its growth and continue to
create value for its shareholders.
Risk management involves identifying, measuring, controlling and reporting risks and disclosing
possible consequences. The normal risks in daily operations include credit, liquidity, market,
operations, legal and compliance. The Bank adopted the Risk Management Charter to see to it
that its directors, officers and staff are cognizant and duly advised of the laws, rules and
regulations relevant to banking and that these are observed to avoid penalties and administrative
sanctions.
The Bank’s Risk Management Committee are composed of 3 Directors, one of whom is an
Independent Director and an Independent alternate Director.
The Bank continually advances on its risk management techniques and integrate this into the
overall strategic business objectives to support the growth objectives of the Bank. The Bank
continues to review its limits system to ensure that it only enters into transactions allowed under
its existing policies and that adequate capital is available to cover risk exposures.
Credit Risk:
Credit risk pertains to the risk to income or capital due to failure by borrowers or counterparties
to pay their obligations, either in full or partially as they fall due, deterioration in the credit
quality of a borrower, issuer or counterparty, and the reduced recovery from a credit facility in
the event of default. This is inherent in the Bank’s lending, and is managed in accordance with
the Bank’s credit risk framework of risk identification, measurement, control and monitoring.
Credit risk is managed through a continuing review of credit policies, systems, and procedures. It
starts with the definition of business goals and setting of risk policies by the BOD. Account
officers and credit officers directly handle credit risk as guided by BOD-approved policies and
limits.
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Exposures to credit risks are managed through regular analysis of the ability of the borrowers
and potential borrowers to meet interest and capital repayment obligations and by changing these
lending limits when appropriate. Exposures to credit risks are also managed in part by obtaining
high valued and easily marketable real-estate collaterals.
On the credit side, the Bank has instituted improvements on its credit policies, which includes
large exposure and credit concentration. Credit process streamlining has also been initiated to
ensure that commensurate controls are in place while the Bank continues to device ways to
improve on its credit process.
On the transactional level, exposure to credit risk is managed through a credit review process
wherein analysis of the ability of the obligors and potential obligors to meet interest and capital
repayment obligations is performed. Exposure to credit risk is also managed in part by obtaining
collateral and corporate and personal guarantees. Moreover, in accordance with best practices,
the Bank also adopts an internal credit risk rating system (ICRRS) for the purpose of measuring
credit risks and uses this information as a tool for decision-making. Pursuant to regulatory
requirements and best practices, the Bank also conducts sensitivity analysis and stress testing of
the credit portfolio to assess sensitivity of the Bank’s capital to BOD-approved credit risk
scenarios.
Liquidity Risk:
Liquidity risk is the risk that there could be insufficient funds available to adequately meet the
credit demands of the Bank and repay deposits on maturity. The bank ensures that there exist an
adequate amount of liquid assets to meet the daily funding requirements.
The Bank manages its liquidity risk through the management's monitoring of various liquidity
ratios, Treasury's regular assessment of liquidity gaps, and the maturity ladder. A maturity ladder
relates the inflows to outflows of funds at selected maturity dates and is constructed to measure
liquidity exposure. The ladder shows the Bank's statement of financial position distributed into
tenor buckets across the term structure on the basis of the term to final maturity or cash flow
dates. The amount of net inflows which equals the difference between the amounts of
contractually maturing assets (inflows) and liabilities (outflows) is computed per tenor bucket on
a cumulative basis incorporating certain behavioral and hypothetical assumptions regarding the
flows from assets and liabilities including contingent commitments over time. The calculated
periodic and cumulative gaps constitute the Bank's run off schedule, which indicate the Bank's
net funding requirements in local currency.
The Asset and Liability Committee (ALCO) reports to the Board of Directors.
Operational Risk:
Managing of operational risk is founded on a sound internal control environment:
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Recruitment and placement policies are in place to ensure the integrity, ethics and competence of
personnel, a written Code of Conduct, written policies and procedures that clearly establish
accountability and responsibility, segregation of functions, verification and reconciliation
procedures, and, an effective assurance and internal audit function.
Information security policies were further strengthened, implemented, and disseminated across
all units of the Bank.
Interest Rate Risk:
Interest rate risk arises from the possibility that changes in the interest rates will affect future
cash flows or the fair value of the financial instruments. The Bank’s interest rate risk relates
primarily to the possible changes in the prevailing interest rates on deposit liabilities and on loan
investments that are subject to variable interest rates. The volatility in the interest rates of these
financial instruments will result in increase or decrease in the Bank’s interest spread, and
consequently will affect financial performance.
Compliance risk:
Risk to earnings or capital arising from violations of or non-conformance with laws, rules,
regulations, prescribed practices, internal policies and procedures or ethical standards. This
arises in situations where the laws or rules governing certain bank’s products or activities of its
clients may be ambiguous or untested. This exposes the Bank to fines, penalties, payment of
damages and the voiding of contracts.
Legal Risk:
This is defined as the risk to earnings or capital arising from unenforceable contracts, lawsuits or
adverse judgments. Banks are particularly susceptible to legal risks when entering new types of
transactions and when the legal right of a counterparty to enter into a transaction is not
established.
Banks’ Efforts to Combat Money Laundering and Terrorist Financing:
The banking industry’s goal is to help deter, detect and report criminal and terrorist activity,
while protecting the privacy of law-abiding customers, and ensuring the integrity of the banking
system in the Philippines. Country Builders Bank, Inc. adheres to this very noble objective.
The Bank is compliant with BSP Circular No. 706 series of 2011 when it updated its Money
Laundering and Terrorist Financing Prevention Program on November 27, 2017.
As a covered person, the Bank is implementing client identification, record keeping and
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compliance regime requirements and reporting of covered and suspicious transactions to the
BSP-AMLC within the reglamentary periods. The Bank has significantly increased its anti-
money laundering controls and expanded its compliance departments to meet increasingly
stringent requirements from the AMLC to ensure that the products and services it offers are not
used for illegal purposes.
The following policies are embedded in this program and their implementation is being strictly
monitored for by the Bank’s Compliance Unit:
A. Customer Identification Process
A.1 Customer Acceptance Policy
A.2 Customer Identification
A.3 On-going monitoring of customers, accounts and transactions
B. Covered and Suspicious Transaction Reporting
C. Record Keeping and Retention
D. Training Program
In-house Orientation Seminars are regularly conducted to newly hired personnel of the Bank and
continuous training and re-training for the purposes of improving employee’s knowledge in
preventing money laundering and terrorism financing and to get to know the customers. Reports
dictating implementation of regulations and guidelines are presented to the BOD committees.
Reports on compliance of banking operations with regulations and guidelines by regulatory
bodies are likewise prepared and reported to the Board of Directors.
Corporate Governance:
The Board of Directors is committed to good governance which is vital to creating trust and
confidence with its stakeholders. The Board aims to ensure on an ongoing basis the application
of best practices of corporate governance and corporate administration.
The Board has delegated authority to the committees of the Board to support its oversight of risk
and control. The committees are the Corporate Governance Committee, the Risk Management
Committee the Nominations, the Executive Committee, and the Audit Committee. The
chairperson of each committee reports on matters discussed during committee meetings to the
subsequent scheduled meetings of the Board.
The Bank continually monitors and reviews its governance through effective oversight. The
Directors are aware that in case they have material concerns about the overall governance, these
should be acted upon without delay.
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The Bank has acted judiciously and expeditiously to resolve complaints and/or concerns of its
clients pursuant to its Financial Consumers Protection Manual. Complaints were properly
referred to concerned units/departments for comments, replies and final resolution.
The Bank has a Code of Conduct and has ensured that appropriate steps have been taken to
disseminate it throughout the Bank along with its supporting policies and procedures. It has also
an approved Vision, Mission, Core values, Objectives and a 5-year Strategic planning.
The Bank has a comprehensive framework of written policies and procedures on all major areas
of operations such as AMLA, Credit, Risk, Internal Audit, Compliance, etc. These policies have
been approved by the Board and are being constantly reviewed. There also exists in the Bank
framework the limits of authority of various management levels. All powers are exercised by the
relevant authorities within the materiality thresholds.
Data Privacy Act of 2012
The Bank is compliant with the provisions of R.A. no. 10173, known as the “Data Privacy Act of
2012” with the registration with the National Privacy Commission and the designation of a
Bank’s Data Protection Officer on August 31, 2017, who shall be responsible in safeguarding the
personal and sensitive data of the Bank’s customers. He shall attend continuously seminars and
trainings with the said Office.
Bank’s Products and Services
I. Deposits
A. Peso Deposits
1. SAVINGS
➢ Regular
Features:
• P 100.00 minimum initial deposit
• P 500.00 average daily balance (ADB) to earn interest
• Interest rate of 0.25% per annum
➢ SUPER KIDS
Features:
• For 7 to 17 years old
• P 100.00 minimum initial deposit
• P 500.00 average daily balance (ADB) to earn interest
• Interest rate of 0.25% per annum
2. TIME
➢ Country Plus Special Time Deposit
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Features:
• P 5,000.00 minimum initial deposit
• Term of deposit is minimum of 30 days and maximum of 1 year
• Interest rates higher than savings interest rate
• Comes with a passbook for easy monitoring
• Flexible terms which allows depositor to plan and grow his deposits.
➢ Prime Time Deposit
Features:
• P 10,000.00 minimum initial deposit
• Term of deposit is Five (5) years and one (1) day
• Interest rate higher than Country Plus Time Deposit
• Interest is credited monthly to regular savings account, a settlement account
• Tax free (Not subject to withholding tax)
3. CURRENT/DEMAND DEPOSIT OR CHECKING ACCOUNT
Features:
• P 5,000.00 minimum initial deposit
• Interest rate of 0.10% per annum
• No service charge on collection of local checks
• No limit on deposits and withdrawals
• Available to Individual/Corporations/NGO’s
• Instant access via check book
4. CBB APPS KIT
Features:
• Cost is P 500.00
• Comes with a pre-deposited P 100.00 savings and a passbook
• Comes with Manulife Micro Insurance for the principal and qualified dependents
good for 1 year
• P 500.00 average daily balance (ADB) to earn interest
• Interest rate of 0.25% per annum
• Priority lane (for all bank and non-bank transactions)
B. FOREIGN CURRENCY DEPOSITS
1. US DOLLAR Savings Deposit
Features:
• $ 100.00 minimum initial deposit
• $ 200.00 average daily balance (ADB) to earn interest
• Interest rate of 0.30% per annum
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2. US DOLLAR TIME DEPOSITS
Features:
• $ 1,000.00 minimum initial deposit
• Term of deposit is minimum of 30 days and maximum of 1 year
• Interest rate varies
II. LOAN PRODUCTS
1. Agricultural Loans
2. Commercial Loans
• Additional working capital for business
• Business Credit line
3. Industrial Loans
4. Loans to Small Medium enterprises (SME)
5. Real Estate Loans
• Purchase of House and Lot
• Purchase of lot only
• Construction of House
• Home improvement Loans
o House renovation
o House extension
o Other house related needs
6. Consumption Loans
• SSS pensioners loan
• Educational loans
• Multi-Purposes loans
• Medical and Annual Check-up loans
7. Loans to Professionals
• Purchase of medical and dental equipments
• Renovation and repairs of clinics/offices
III. SERVICES
1. Acceptance of Bills and Premium Payments (Authorized Bayad Center Agent):
a. Bills Payments for the following business establishments and utilities:
• Manila Electric Company (MERALCO)
• Manila Water Works
• Maynilad
• Skycable
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• Destiny Cable
• Digitel
• Bayantel
• Smart/Globe
• Others
b. Monthly/Quarterly Premiums and Payments for the following:
• Social Security System (SSS)
• Philippine Health Insurance Corporations (PhilHealth)
• Manulife
• Philamlife
• Sun Life
• Others
c. Remittances:
• Western Union
• Uniteller
• I-remit
• My Remit
• Moneygram
• Smartmoney
• Transfast
• Cebuana Padala
• Others
2. Automatic Tellers Machines (ATMs) installed in selected branches
3. Servicing of SSS Pensioners Monthly Pensions
4. Safety Deposit Box rental at Binan Branch
5. Authorized/Licensed Micro Insurance reseller (Manulife Micro Insurance)
BRANCHES
The CBB has to-date thirty-one (31) regularly operating branches and five (5) micro-
banking offices to service the banking needs of the people of Metro Manila, and in the provinces
of Laguna, Bulacan and Rizal, Cavite, Antipolo and Rizal.
A. Metro Manila Branches:
Taguig City:
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1. Main Office – 6 Gen. Luna Street, Tuktukan, Taguig City
2. FTI Complex Branch – Stalls 1 - 3, Maharlika Gate, FTI Complex, Taguig City
3. Lower Bicutan Branch – Gen. Santos Avenue, Lower Bicutan, Taguig City
4. Signal Village Branch – 30 Gov. Rodriguez, Signal Village, Taguig City
5. Western Bicutan ( C5 )Branch – Blk. 9 Lot 7, MRT Avenue, Taguig City
6. Lower Bicutan Branch – 8 General Santos Ave., Lower Bicutan, Taguig City
Makati City:
7. Comembo Branch – 56 Sampaguita Street, Comembo, Makati City
8. Pembo Branch – Sampaguita cor. Mullien Street, Pembo, Makati City
City of Manila:
9. Manila City Branch – 1665 A. Francisco, San Andres, Manila
Quezon City:
10. Commonwealth Branch – 22 Steve St. corner Villongco St., Commonwealth, Quezon City
Pasig City:
11. San Joaquin Branch – 207 M. Concepcion Street, San Joaquin, Pasig City
12. Santolan Branch – 79 Amang Rodriguez Avenue, Santolan, Pasig Cit
13. San Miguel Branch – M. Eusebio Avenue, San Miguel, Pasig City
Marikina City:
14. Marikina Branch – 345 J.P. Rizal Street, Sto. Nino, Marikina City
Muntinlupa City:
15. Alabang Branch – 377 West Service Road, Alabang, Muntinglupa City
Las Pinas City:
16. Las Pinas Branch – 298 Real Street, Pulang Lupa, Las Pinas City
Caloocan City:
17. Camarin Branch – 5887 Camarin, Caloocan City
Municipality of Pateros:
18. Pateros Branch – 22 M. Almeda Street, Pateros City MM
19. Pateros Branch (Formerly 1stMB) – P. Herrera cor. Morcilla Streets, Pateros, Metro
Manila
B. Provincial Branches:
Bulacan:
1. Angat Branch – Poblacion, Angat, Bulacan
2. Muzon Branch – Libis, Muzon, San Jose del Monte City, Bulacan
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3. Norzagaray Branch – Bigte, Norzagaray, Bulacan
Laguna:
1. Binan Branch – Jacobo Gonzales Street, Poblacion, Binan, Laguna
2. Los Banos Branch – J. P. Rizal Street, Poblacion, Los Banos, Laguna
3. Sta. Rosa Branch – 1634 E, National Highway, Sta. Rosa, Laguna
Rizal:
1. Ampid Branch – 117 Gen. Luna Street, Ampid, San Mateo, Rizal
2. Montalban Branch – 115 J. P. Rizal Street, Mangahan, Rodriguez, Rizal
3. Angono Branch – 785 M. L. Quezon Ave., San Isidro, Angono, Rizal
4. Morong Branch – Tomas Claudio Street, San Pedro, Morong, Rizal
Cavite
1. Dasmarinas Branch – Area B, Bagong Bayan, Dasmarinas, Cavite
2. GMA Cavite Branch – Poblacion 1, Congressional Road, GMA, Cavite
C. MBOs of the merged First Macro Bank, Inc.
1. Trece Martirez, Cavite – San Agustin, Trece Martirez, Cavite
2. Silang, Cavite – 168 J. P. Rizal Street, Poblacion 1, Silang, Cavite
3. Imus, Cavite – DCT Building, Regatta West Subd., Bucandal 3, Imus City, Cavite
4. Binan, Laguna – 5185 National Hi-Way, Canlalay, Binan, Laguna
5. Antipolo City – 2 Sto. Nino Street, San Jose, Antipolo City
Membership and Accreditation/Affiliation:
The Bank is a member in good standing of the following:
1. Philippine Deposit & Issuance Corporation (PDIC);
2. Rural Bankers Association of the Philippines (RBAP)
3. Federation of Metro Manila Rural Banks, Inc. (FOMMRBI)
4. Bancnet
Accreditation:
1. Social Security System (SSS) - SSS Pensions Direct Deposits and as a conduit financial
institution to its Special Financing Program, Hospital financing Program and Financing
Program for Educational Institutions.
2. Small Business Corporation (SBCFC)
3. Agricultural Guaranty Fund
4. Department of Education (APDS)
5. Philippine Health Insurance Corporation (PhilHealth)
6. Home Development and Mortgaged Corporation (HDMF)
7. Philippine Long Distance Telephone Company (PLDT)
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8. Manila Electric Company (MERALCO)
COUNTRY BUILDERS BANK, INC.
TOP 10 STOCKHOLDERS
NAME NATIONALITY
NO. OF
SHARES
HELD
PERCENT
(%)
1 Dakila B. Fonacier Filipino 244,929 14.11%
2 Julieta L. Santos Filipino 181,696 10.47%
3 Sonia L. Ocampo Filipino 148,666 8.56%
4 Ma. Cristina L. Valenzuela Filipino 138,479 7.98%
5 Reginald L. Ocampo Filipino 99,859 5.75%
6 Sonja L. Ocampo Filipino 99,636 5.74%
7 Ma. Corazon L. Miller Filipino 88,175 5.08%
8 Renato R. Reyes Filipino 88,120 4.96%
9 Mother of Life Center Institution 74,009 4.26%
10 Maria Reyes &/or Renato R. Reyes Filipino 70,000 4.03%
CBB WEBSITE: www.cbb.com.ph
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