and acquisition of eligible rural banks and thrift banks by strategic third party investors. as of 30 june 2014, seven merger / consolidation applications involving fifteen ( 15 ) banks have been approved by the pdic and are being processed by the bsp. in addition, there are five ( 5 ) other applications for consolidation / acquisition that are in the pipeline. capacity building is another area we have focused on. in particular, the bsp ’ s supervision and examination sector developed a completely new four - day training program targeted for the board of directors and senior officers of rural banks which we now refer to as the rural bank management course. the bsp worked with rbap on the coverage of such a program. after a series of pilot and early runs we are now ready to hand over to rbap the course materials and the conduct of this well - received and highly rated course. if needed, the bsp is prepared to extend further assistance on this program to rbap. redefining a strategic direction while these programs are meant to enhance the operations of rural banks, we recognize that there is still a lot more that can and should be done. a good starting point is a fundamental review of your banks ’ strengths and weaknesses. after this is completed, identify the needs of your constituents in the context of the competition that has emerged. such a review is likely to show that different communities require different forms of access and delivery of financial products and services. this is the direct result of having an archipelago where demographic differences across localities are significant. this may seem like a stumbling block but this also represents opportunities for rural banks. for instance, our experience in microfinance and financial inclusion shows that alternative delivery channels are viable. you can therefore find a balance between alternative delivery mechanisms vis - a - vis the brick and mortar approach of traditional branching. bis central bankers ’ speeches as you move from one locality to another, you will discover that one approach is more viable than the other, depending on the economics of the locality itself. for other areas, it may be economically feasible to offer both approaches to the community. in the current environment, we do see a silver lining : in the face of rising competition, we see the market growing as the benefits of development programs and fresh investments increasingly find their way to the countryside. we see for instance the positive impact of infrastructure development, tourism and even the conditional cash transfer program. in small communities, such inflows can serve as catalysts for sustainable and inclusive growth. microfin

##ance presents another growth opportunity for rural banks, with microentrepreneurs emerging as both depositors and investors who generate jobs. the crucial steps moving forward ladies and gentlemen, the unfolding scenarios certainly create opportunities for those who are determined to pursue the path of success. for rural banks, this is an impetus to boost operational efficiency, expand product lines, reach out to more markets, increase diversity, lower operating cost and simply right - size the way you do business. after long discussions on such concepts as regionalization, market integration and global reforms, these buzzwords are now a reality. the broad strokes are evident. now you have to decide where to take your bank and how to achieve your vision. you can be proactive or you can simply maintain the status quo. it is all up to you. one thing is certain. the bsp stands ready – as it always been – to be the partner of the rural banking sector in responding to the financial needs of the philippine countryside to reach out to those who remain unserved and to promote sustainable and inclusive growth across our country. maming salamat sa inyong lahat! mabuhay ang ating mahal na bansang pilipinas! bis central bankers ’ speeches