In M-CRIL’s view, on account of significant institutional presence, overall good performance, commendable approach to sustainability and self-reliance, as well as the growth plans of the
organisation, CRBB can absorb – from all sources – additional loan funds of US$10 million (PHP510 million) over the next one year for on-lending to its borrowers.
However, given the relatively low capital adequacy position of the organization, it is recommended that lenders should monitor the situation and provide a substantial flow of funds only if the capital adequacy ratio stays above 10% after the inflow of funds. The weak second line of leadership and weakening internal controls are also becoming causes of concern and lenders should monitor the situation on these issues as well.
