Card Rural Bank

This paper examines the success of Center for Agriculture and Rural Development Inc. (CARD) in the Philippines.

CARD began as an NGO organized by 15 rural development practitioners in December 1986. Its most successful years were during the period from 1997 to 2002. Its loan portfolio grew from Php 17.6million in 1997 to Php 314.3million as of 2002. Consequently, the banks outreach expanded from 3,680 members in 1997 to 32,381 by 2002. Savings mobilized from the public, which amounted to roughly Php 8.9million in 1997, rose to Php 192.9million by 2002. The banks repayment rate was 100% in 2002. Reasons for its success include:

• Government policy that encouraged NGO establishment;
• Replication of the Grameen Bank model;
• Interplay of training, savings mobilization and credit services;
• Establishment of centers for loans and savings transactions;
• Nurturing of group members;
• Mobilization of voluntary savings from groups;
• Effective credit monitoring and control;
• Implementation of changes to improve operational and financial self-sufficiency.

These factors resulted in the success of CARD and in the implementation of CARD Bank in 1997.