FINANCIAL PERFORMANCE OF THE MICROFINANCE SERVICES OF A RURAL BANK IN QUEZON PROVINCE

The Bigkis Yaman Program of the Bank began in April 2002 through the buy-out of the failing retail microfinance operation of the People’s Credit and Finance Corporation (PCFC). One of the services of the bank is microfinancing called balikatan loan. This study will examine the effects of microfinance with the financial sustainability of RBAI based on data from one of its branches. This research will be beneficial to the bank clients, bank managers and for the future researchers. This is in the form of documentary analysis or content analysis as it is based primarily on processing and analysis of data from the records of the bank I branch in Lopez, Quezon on purposive sampling. To determine results, it uses t-test and regression analysis that concludes that the bank operates their microfinance the same with their competitors, It offers loans that are relevant to the needs of their prospects, They adopt Grameen style to promote collection efficiency. The bank has a strict loan processes. Collections are made on a timely basis. Constant monitoring is employed by the bank personnel. The bank has a sound financial performance with exceptions on huge receivables as assets. It also shows increase in company’s net assets. Finally, based on the findings possible recommendations are given. These include the issues that the bank should try to offer more products and services that may engage their borrower into their business and used other techniques such as ratio analysis and finally the manager should constantly review their loan processes because it shows no difference from other institutions