Bangko Sentral ng Pilipinas: Improving the collection process of restructured loans under MBR no. 1366

• Main Author: Morales, Cindy Espiritu
• Format: text
• Language: English
• Published: Animo Repository 2019
• Subjects: Banks and banking > Philippines; Banks and banking, Central > Philippines; Loans; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/7046
• Institution: De La Salle University

The Bangko Sentral ng Pilipinas (BSP)’s effectiveness in accomplishing one of its mandates towards a sustainable economic growth is based on timely information and analytical inputs that help promote a safe and efficient payments and settlements system in the country. This action research is about improving the existing collection process of restructured loans of the BSP, which is currently assigned to the proponent and her team in the Department of Loans and Credit (DLC) of BSP. It describes our team’s operational issue concerning the collection process of restructured loans as manifested by the number of past due loans and negative feedback from clients on the delays in processing the payment order request for the said type of loan. The conceptual framework that is used as guide in doing this action research is the Business Process Reengineering Framework in combination with Kaizen Cycle for Continuous Improvement as Change Framework. To achieve the intended change and resolution, we have executed the following: (1) creation of Statement of Accounts (SOAs) for the borrowers; (2) periodic sending of SOAs to the borrowers; and (3) improvement of the existing collection process of restructured loans. Through this action research, the Accounts Management Team of the Department of Loans and Credit can contribute greatly to the improvement of the collection process of restructured loans of the BSP and thereby contribute to collection efficiency. The researcher has learned to use the different tools of action research such as using reflection journals with ORJI (observation, reaction, judgement, intervention) Model, Ladder of Inference, and the left hand/right hand column. This IAR empowered everyone in my team all throughout each cycle; we learned to value respect, patience, and understanding, especially when we are dealing with our stakeholders.