IT is truly what they say, banking with a difference.
The Lord’s Bank, a parish-based savings bank established in three parishes in the Diocese of Daet is no ordinary bank. It operates on the premise that depositors can deposit money but not withdraw.
The concept is a social credit system patterned after that of Canada. The money deposited is loaned to member depositors to support social services, like small scale businesses and other livelihood projects.
“The idea behind is to lend money without interest,” said Msgr. Joselito Asis, former parish priest of St. John the Baptist Parish of Daet diocese. Asis, who is currently the assistant secretary general of CBCP, established the Lord’s Bank in his parish in October 2006.
Asis said banks and other lending institutions usually put a certain percentage on money loaned which makes it impossible for poor people to pay up.
And this is especially true in developing countries like the Philippines, said Asis. Social credit is an advocacy by a group in Canada which Bishop Almoneda adopted, he added.
A brainchild of Bishop Benjamin Almoneda when he was still the local ordinary of Daet, the Lord’s Bank was actually started by the late Msgr. Quirino Parcelo in his parish of San Roque. He designed a program that would integrate social credit with the tithing program. Thus, the Lord’s Bank was born.
“It can finance any program, microfinance, scholarship grant, health, financial aid and other needs,” explained Asis.
Asis lectured on the aspect of stewardship explaining to parishioners the rationale behind the concept. He conducted formation sessions with parish leaders, lectors, Eucharistic ministers, religious organizations, and BECs.
“So when we started the tithing program, we started the Lord’s Bank. Tithing is 10 percent of our income, but we don’t actually give 10 percent. The idea of stewardship is to give [the] offering according to [one’s] capacity. But it should be done in a regular basis. They can pledge any amount they can give. But once they give, it will go to the Lord’s Bank,” explained Asis.
Just like any bank account
Just like anybody opening a bank account, the depositor will also be given a passbook. All the transactions are recorded in a ledger in the parish office.
If a depositor deposits 100 pesos a month, the amount is recorded and reflected in the passbook.
It really operates like a bank only with a difference, said Asis. Once somebody deposits money in the Lord’s Bank it is not withdrawable, because it is the person’s tithing.
The frequency of tithing is left to the capacity of the faithful. The principle is when a person receives his salary, he/she gives his tithing.
Asis encouraged his parishioners to give regularly out of their income.
“That’s why, if you are regularly receiving your salary, get already a percentage of it or set aside an amount. Many, actually, give their deposit to the parish at the end of the month,” said Asis.
The money collected from depositors was kept intact for one year. The parish was able to collect P150,000 with only 60 depositors.
In its second year of operation, half of the money was invested to a Botika ng Parokya and the other half made available for soft loans.
The 3S way
Aside from the usual tithing Asis introduced another novel way of enticing parishioners to become active depositors in the Lord’s Bank. One Lenten season, he started the 3S way—sacrifice, save and share, and found it very effective.
“For example, [you] used to take a snack worth P10 pesos, you make a sacrifice, save [it], in one week you have P70 pesos. In one month you save roughly P250 pesos. So you deposit that into Lord’s Bank,” explained Asis.
“When I proposed that to my catechists, they said, okay, deduct P20 pesos from our honorarium for the Lord’s Bank,” Asis chuckled.
Asis has no idea how many depositors are there now, although he assumes there has been an increase since he left the parish.
The Lord’s Bank is still in its early stages and yet to enhance its operations like a regular bank. Asis said the Lord’s Bank will eventually have its own officers and board of trustees composed of parish finance council. Currently the parish priest acts as bank’s manager and the parish secretary takes care of the transactions.
The bank has a policy of a maximum loan of P5,000. Whether this will increase in the future will depend on the availability of funds of the bank.
One of the conditions before one can borrow is that he/she has to be a depositor first, regardless of how much one deposits. The borrower is encouraged to pay back the loan on time and continue to deposit. Payment of loans has a maximum time of three months. The main borrowers, according to Asis, were also the catechists.
The bank had already released loans to assist a catechist whose child needed to be hospitalized and to another who needed money as capital for a small sari-sari store.
Bank’s beneficiaries
The bank is a great help especially to the poor. The soft loans that poor people get from the Lord’s Bank free them from becoming prey to the usurious practices of some money lenders. Those unemployed are also given the chance to start a small business to support themselves and their families.
Asis said the member-depositors are also benefited since they are given the chance to be generous and charitable. It also teaches the people that even the poor can give out of the little they have.
At the same time the contribution of the rich helps. If this can be developed, it will bring much benefit. But it will depend on catechesis and formation, he concluded.
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