History & Profile


Bangko Kabayan History & Profile


Ibaan Rural Bank, Inc. was established on August 19, 1957 by Mr. Bienvenido M. Medrano, former President of the Philippine Chamber of Commerce and Industry and co-founder of Far East Bank, and Mr. Manuel M. Agregado, then newly retired Auditor General, with the vision of becoming of service to the people of Ibaan, Batangas by providing reasonably priced credit particularly to small merchants, farmers and traders in the community. Aiming to spread the benefits of what he believed would be a profitable business, Mr. Medrano invited relatives and town mates to invest in IRB in whatever capacity they had. A year later, another prominent investor joined the IRB in the person of Mr. Roman Ozaeta, a retired Supreme Court Justice.

With the end-goal of uplifting the quality of life of the people in the countryside, IRB participated in government programs aimed at providing credit to the rural population. Like most of rural banks did, IRB, in its early years, operated largely with rediscounting funds from the Central Bank. However, while delivering the usual savings and loan services, Ibaan Rural Bank pioneered the use of checking account in Batangas area, in as early as 1967, for its founding fathers, being progressive businessmen themselves, appreciated the importance of providing such service, to further develop the budding SME sector in Batangas at that time.

Upon the entry of the second generation, namely, Atty. Francis S. Ganzon and Ms. Teresa M. Ganzon, IRB was placed in a premier position in the rural banking industry. In 1980, the Human Resource Department was formally established and the first Vision and Mission Statements of IRB were crafted. Inspired by the Economy of Communion proposed by Chiara Lubich of the Focolare Movement, in 1991 IRB embarked on an expansion program to be able to make a bigger impact, both as an employer and as a rural-based financial conduit. Deposit generation became its major thrust, in order to wean itself away from the Central Bank and develop its capacity to operate as a stable rural bank. From 1991 to 1996, eight branches were established in various municipalities of Batangas – Calaca, Cuenca, Mabini, Nasugbu, Rosario, San Jose, San Juan and San Pascual.

In 1996, the Ibaan Rural Bank Foundation was established, funded out of the bank's profits (3% of NIAT), to highlight the Corporate Social Responsibility of the bank, with the purpose of extending micro-credit and scholarship programs such as "Study now, pay later" for the poor but deserving students and sponsoring community-building seminars.

When the bank celebrated its 40th anniversary, it adopted the business name "Bangko Kabayan" with a resolve to be of service not only to Batangueños but also to other communities in nearby provinces.

In 2000, in search for a new product after the financial crisis affected many of their SME clients, BK explored the possibility of going into microfinance lending. They first studied the Grameen replication (group method) and after making some adjustments, moved the activity from the foundation to the bank as a formal product.  A year later, the USAID introduced the Microenterprise Access to Banking Services program or the MABS, and BK became a pilot project in Region 4 to try out individual microfinance services.  Passionate in their desire to effectively reach the unbanked sectors and introduce them to banking services, top management of the bank gave full support to the program and even if the USAID ended its project about 5 years ago, the MABS individual microfinance product has continued to grow as a stable MF product. Today, the microfinance embraces not only lending but also savings and microinsurance, micro-housing products as well. Reaching some 11,000 clients and generating P153M in loans, making up 11.3% of total loan portfolio, BK’s microfinance program has also generated P121.5M in low cost savings, long-term. Gross interest income of the product has accounted for 22% of total gross income of the bank today.  Likewise, BK has been awardee the prestigious MF EAGLE  (Efficiency, Asset Quality, Growth, Liability Structure and Earnings) Award 2003 – 2007 and again in 2010 and 2011 when the last awarding took place – the only rural bank in the country to have won the award 7 times making it to the Hall of Fame in the USAID progam.

In 2007, Bangko Kabayan celebrated its 50th Anniversary and unveiled its new corporate logo, representing its achievement in becoming a solid rural bank in the region. During that year, it received the Best Capital Build-up in the Landbank Awards and was included in the Global Top 100 of Microfinance Information Exchange (MIX). In fact, BK has been the outstanding LBP partner bank in the region from 2008 – 2011 and again in 2013 and 2015.
In 2015, in line with the efforts of Bangko Sentral ng Pilipinas (BSP) and the National Government to push microinsurance as a response to the devastation caused by climate change, Bangko Kabayan, in partnership with the Country Bankers Life Insurance Corporation, launched the CB Kalinga Microinsurance for the benefit of of both MF clients and depositors.

In celebration of its 59th anniversary, Bangko Kabayan launched its new face as Private Development Bank. It has consistently maintained its CAMELS rating of 4 in the past 4 years, became 100% compliant with Cir. 855 within a year of its introduction with minimal effect on its balance Sheet. It has 23 branches in the provinces of Batangas, Quezon and Laguna, focusing on municipalities with growth potential in the MSME sector, a deposit base of 51,200 depositors and resources of over P2.5B today.