Originally founded as the Rural Bank of Nasipit in 1975, Green Bank began as a small but prosperous rural bank in Agusan del Norte in northern Mindanao. The town of Nasipit was known throughout the Philippines and South East Asia as a center for logging and timber, and the employees of the lumber mill represented a large part of the Rural Bank of Nasipit’s customers and board members. In the late 1970s and early 1980s a number of circumstances negatively affected the bank’s assets and reputation. First, wood resources and prices began to decline during this time, causing the town’s lumber mill to slow production and eventually close. This severely affected the local economy and subsequently the customer base of the bank. Second, a number of employees and senior managers of both the failing lumber mill and the Rural Bank of Nasipit had taken out millions of pesos in personal loans from the bank. Third, the Rural Bank of Nasipit had its own debt of approximately 15 million pesos owed to the Bangko Sentral ng Pilipinas (BSP).
|Source Institution||United States Agency for International Development|
|Place of Publication||Manila|
|Original Publication Date||June 20, 2006|
|Tags||Annual Report Banking, Annual Report Microfinance|