NEW DELHI — Indian farmers plan to continue a protest march to New Delhi after talks with ministers failed to make progress on issues including better crop prices promised in 2021 when thousands camped on highways leading to the capital.
The march, the latest in a series of such protests going back more than two years, comes months ahead of national elections in which Prime Minister Narendra Modi will seek a third term, with farmers forming an influential voting bloc.
Participants in the latest march, however, include only a section of farmers from a handful of northern states.
Farm unions hope to force the government to make a law committing to provide higher state support or price guarantees, and honor promises to double farmers’ income.
Talks between union leaders and the government failed to yield results, with farmers saying that the government was dragging its feet on meeting their demands.
“The government has not been able to make a strong decision on anything… We thought that giving time is not suitable now,” Sarwan Singh Pandher, the general secretary of Punjab Kisan Mazdoor Sangharsh Committee (KMSC), told ANI news agency.
Agriculture Minister Arjun Munda told reporters after the talks that some issues had been resolved but more discussions were needed. “Any problem can be solved with discussion. We are hopeful that we will bring solutions,” he said.
Police have prohibited large gatherings in New Delhi and blocked sections of major routes leading to the capital from the northern state of Punjab from where most of the farmers are starting their march.
Farmers from states including the northern breadbaskets of Punjab and Haryana were ready to march to Delhi, KMSC President Sukhwinder Singh Sabhra told ANI.
The government announces support prices for more than 20 crops each year to set a benchmark, but state agencies buy only rice and wheat at the support level, which benefits only about 6% of farmers who raise those two crops.
In 2021, when Mr. Modi’s administration repealed the farm laws after the farmers protested, the government said it would set up a panel of growers and government officials to find ways to ensure support prices for all farm produce. — Reuters
It seems that there is not enough time — in a lifetime — to do all the things one wants to do or the difficult things one needs to do.
Procrastination is passive-aggressive behavior. It justifies delays. One postpones living life. A cynic once remarked, “It was never the right time.”
When is the right time? Does kismet determine all events? Are we not the masters of our own fate? Perhaps, only to a certain extent. One cannot control or predict the future.
“There will be lots of time.” Or so we like to think.
The optimist sees the hourglass half full. Sand seeps from top to bottom ever so slowly. The pessimist sees the hourglass half empty, with sand trickling down rapidly.
Poet and philosopher Kahlil Gibran once wrote, “I prefer to be a dreamer among the humblest, with visions to be realized, than lord among those without dreams and desires.”
When one is hopeful, one waits for the rainbow, the promise. He looks for the silver lining, the radiance of the sun after a storm.
So many events happen in a spectrum — from light to dark.
The artist visualizes colors in a prism from white (the presence of all colors) to black (the absence of color). It has been one long, dizzy, roller-coaster ride of sudden curves, exhilarating climbs and thrilling dips, and swirling colors.
There is beauty even in darkness. The specks of light illuminate even the blackest night. There have been so many spectacular sunsets with glowing rays of gold, copper, and bronze. The moonrise, luminous against the velvet sky, was a lantern guiding the way. Heavy fog would evaporate into fine mist. The dewdrops hung like crystal on the leaves. The lake would shine like a polished silver mirror, reflecting the moods of the heavens.
Fragrant flowers would bloom amidst the aromatic pine trees and evergreens.
Even in winter, little buds would break through to defy the cold. Lavender and poppies, sunflowers, tulips, and magnolias marked the passing seasons. Nature mesmerizes and invigorates the wandering pilgrim, the lonely nomad.
Woven together, the threads of life have become a unique tapestry of texture, colors, flowers, scents, and emotions.
Viewed from a distance with the passage of time, one can discern a luminous white light that emanates from above. The mystery of the Divine Plan unfolds.
All that really matters now is inner peace and love.
The simple basic things are essential. The completeness of oneself and spirituality can only grow from trials and cathartic experiences.
Material things — money, houses, cars, boats, and toys — can easily be taken away. A lifestyle drastically changes with a sudden reversal of fortune or the passing of a loved one. False friends disappear. People can turn nasty, dismissive or cruel when one is down and alone.
How does one survive the challenging, painful times?
By flowing with the tide. By allowing nature to take its course. By accepting that things always happen for a reason. We may never fully grasp the meaning, but we should learn trust and acceptance.
By letting go and forgiving. By facing and resolving difficult issues. One draws courage from deep within the soul — to stride into the future.
Life is a cycle. One can begin anew. Serenity comforts the heart. Live life, one day at a time.
“A butterfly comes and stays on a leaf — a leaf much warmed by the sun — and shuts his wings. In a minute he opens them, shuts them again, half wheels round, and by-and-by — just when he chooses, and not before — floats away. The flowers open, and remain open for hours, to the sun. Hastelessness is the only word one can make up to describe it; there is much rest, but no haste. Each moment, as with the greenfinches, is so full of life that it seems so long and so sufficient in itself.” — “The Pageant of Summer,” Richard Jefferies, American poet
Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.
LONDON — The cast of Bridgerton offered fans a sneak peak of its third season on Wednesday, sharing a glimpse of the latest budding romance in the hit Netflix drama that has gained fans around the world.
Characters and longtime friends Penelope Featherington, played by Nicola Coughlan, and Colin Bridgerton, portrayed by Luke Newton, take center stage in the new season of the show, which is set in Regency-era London.
The period drama is based on the books by Julia Quinn, with each focusing on a sibling of the Bridgerton family. The third season of the show skips the third book in Ms. Quinn’s series about Benedict Bridgerton to focus on Colin and Penelope, who are already well known to fans of the television show.
“This time we know the people falling in love, we’re already rooting for them,” executive producer Shonda Rhimes told a question-and-answer panel in London, where a scene of the new series was shared.
Bridgerton became a global phenomenon when it was released in 2020 and won praise for its diverse cast.
The new season sees fan favorites Adjoa Andoh and Golda Rosheuvel reprise their roles as Lady Danbury and Queen Charlotte respectively. Since season two of Bridgerton aired, the latter character has had her own spin-off origins story.
“It’s a great support for the characters now going forwards, the fans have caught up,” Ms. Rosheuvel told Reuters of the spin-off.
Bridgerton season 3, made up of eight episodes, will launch in two parts, the first released on May 16 and the second on June 13. — Reuters
THE Department of Transportation (DoTr) has signed an agreement with Manila Electric Co. (Meralco) to power the Metro Manila Subway.
The power utility giant will finance, install, construct, control, operate, and maintain the required facilities within the switching station for the Metro Manila Subway, the DoTr said in a media release on Thursday.
“I would like to thank Meralco for your support as this agreement will help the Metro Manila Subway a step closer to reality,” Transportation Secretary Jaime J. Bautista said in a statement.
Under the agreement signed by the two parties, Meralco will construct facilities at the Valenzuela Depot of the Metro Manila Subway project.
Meanwhile, the DoTr will allocate to Meralco a switching station area of approximately 1,743 square meters for the interconnection of the Metro Manila Subway to Meralco’s distribution network.
The Metro Manila subway will connect 17 stations in Metro Manila. It is initially scheduled to start full operations by 2027 but was then delayed to 2029 on right-of-ways acquisition issue.Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose
LONDON — Britain’s markets watchdog has ordered more than 1,000 banks, insurers and brokerages to report how many sexual harassment, discrimination and other non-financial misconduct cases they have recorded since 2021 and how they have dealt with them.
The Financial Conduct Authority (FCA) promised lawmakers in January it would investigate how financial services companies deal with such misconduct amid complaints from victims that they are often silenced or forced to quit.
The view that London’s financial sector remains an “old boys club” in which perpetrators of abuse operate with apparent impunity became more widespread after sexual assault and misconduct allegations against hedge fund founder Crispin Odey and Confederation of British Industry (CBI) officials last year.
Mr. Odey has denied wrongdoing, but his hedge fund closed. The CBI said it had dismissed a small number of staff who had failed to meet “high standards of conduct.”
The FCA said on Wednesday it had sent Section 165 notices — under which it has the power to compel firms to produce information — to 184 investment banks, 217 commercial insurers, 349 insurance intermediaries and 288 wholesale brokers.
A failure to respond could lead to a public censure, a fine or a search of the premises. The notice also means that firms can comply even if they have signed non-disclosure agreements (NDAs), one lawyer noted.
The FCA wants high-level data for the number of nonfinancial misconduct incidents since 2021, how they were detected and the outcomes, including any NDAs and employment tribunal hearings, so it has a better view of the problem.
It is also asking for the number of cases involving senior managers and where incidents took place: at the office, working from home, working offsite or in work-related social situations.
In the notice to Lloyd’s of London, its insurance managing agents and intermediaries, the FCA said the wholesale insurance market had a “long way to go in having an inclusive culture” and asked for a response by March 5.
Lloyd’s, which regulates nonfinancial misconduct amongst its ranks, has previously acknowledged problems with sexual harassment and day-time drinking in the commercial market, which employs nearly 50,000 people.
“Lloyd’s is working with the FCA to support the survey and our market’s responses,” a spokesperson said.
Lawmakers have said they were appalled by the scale of the problem in finance after 40 women from 30 financial firms told them anonymously about how victims typically are forced to move teams, leave or are silenced with NDAs.
The FCA, which has said non-financial misconduct is relevant when considering whether people are “fit and proper” to work in finance, has said it might publish some aggregated data but will ensure that individual firms cannot be identified. — Reuters
BRUSSELS — Operations at the port of Antwerp, one of Europe’s biggest container ports, were seriously impacted as hundreds of farmers on tractors blocked the roads around the port to demand better pay and working conditions, officials said.
The protest follows a large number of similar actions by angry farmers in France, Belgium, the Netherlands and beyond, as farmers also demand looser environmental rules and better protection against cheap imports.
“Operations are heavily disrupted,” Stephan Van Fraechem, the director of the association of port companies Alfaport VOKA, told Reuters. “No freight can be delivered or picked up, as trucks are halted, while employees are only being allowed in after a long wait.”
Mr. Van Fraechem said this was costing companies working in the port millions of euros “for a conflict they play no part in.”
The delays this is causing for freight handling come on top of the problems that port companies are already experiencing as attacks on vessels in the Red Sea force shipping companies to stay away from the Suez Canal and opt for longer routes instead.
“Supply chains are already disrupted,” Mr. Van Fraechem said. “Now ships that are already working outside their usual schedule arrive in a port where they can’t unload. This is a cause of great concern.”
A spokesperson for the port said roads were blocked at various places, disrupting traffic and causing long lines of trucks.
In France, the head of the country’s biggest farming union, FNSEA, said protests that hit the sector last month — blocking highways across the country — could resume if the government does not do more to meet their demands for better pay and working conditions. — Reuters
CASH REMITTANCES rose to another record last year as overseas Filipino workers (OFW) sent more money to their families who struggled with spiraling prices, the Philippine central bank said on Thursday. Read the full story.
Frankly, we have a quite talkative (“verbose,” as others would put it) Constitution. At 12,700 words, it is more than double that of the world’s oldest, longest continually running constitution, that of the United States which is at 4,500 words. On that score alone, a revision to our Constitution may indeed be opportune. Less talk, less mistake.
So, the least we could do is to make our Constitution leaner and more flexible: simply delete Arts. XI to XV. They have no place being there and their contents are better off left to the discretion of Congress. The “impeachment provisions” could be placed under the General Provisions.
Interestingly enough, despite our Constitution’s loquacity, it did forget to state a “Supremacy Clause.” Because, believe it or not, there’s no legal basis for actually saying that our Constitution is the supreme and fundamental law of the land. For some reason, the framers of the 1987 Constitution overlooked providing for something akin to Article VI.2 of the US Constitution. Indirectly of course, there is Art. VIII.5 of the Constitution. But that is as far as the Supreme Court goes. In any event, it wouldn’t hurt to put an express and clear “supremacy clause” in our Constitution.
Profound changes to our governmental system with far-reaching beneficial consequences could be made without the need for constitutional amendments. One is that local government units (LGUs) can be further strengthened by simply amending the Local Government Code (not necessarily through the Constitution). The power to make investment, trade, and customs regulations, and provide education, welfare, and health services should be devolved to, with primary responsibility in the hands of, the provinces. The national Departments for Trade, Education, Welfare, and Health shall now be relegated to mere coordinating agencies. The LGU shall be solely responsible for raising domestic revenue and developing export markets. The National Government shall focus on merely addressing trade remedies and security issues. All LGU earnings shall remain with the LGU, with the consequence that no province is entitled to any more share from the national budget. This renders inutile the need for a federal form of government.
Another is our Civil Service, whose structure can be changed through revising the civil service code rather than constitutional amendment so that only department secretaries are appointed by the president, with the rest (i.e., undersecretaries down) being permanent employees of the government. This has the advantage of a more stable, professional, and politically neutral civil service system with better institutional memory.
As for actual constitutional amendments, one is on voter qualification. Raise the voting age to 25 years. Scientific research indicates that the human brain attains full development at about that age. Such, at the same time, corresponds with other scientific findings suggesting that the youth today go through an extended adolescence period, ending (again) at around 25 years of age.
Also, require all new voters to pass a civics exam. With the Philippines having a 99% literacy rate and considering one needs to pass various tests just to drive an automobile, it makes sense that voters prove their knowledge (consequently, the desire to have knowledge) about the country whose officials and issues they’ll be voting upon.
Whatever happens, we need to retain our current presidential and unitary governmental system. Our recent and quite unfortunate experience with the COVID pandemic shows the complete inappropriateness and unreadiness our country is for a federal form of government. Besides, any concern that local governments might have could readily be addressed by revising the local government code and not the Constitution.
Having said that, the Constitution could be changed so that the president and vice-president are voted together, with the choice of the vice-presidential candidate left to the presidential candidate. Whatever reasons given in the past for non-tandem voting, experience shows it does not work. By electing a team, the Philippines is assured of a more cohesive government, with the vice-president having better opportunity to be productive governance-wise.
Furthermore, presidents should be constitutionally required to have a majority of votes cast, with a run-off election if need be.
Also, a vice-president currently has a monthly salary of P325,807 to P374,678 (plus other benefits), so it’s ridiculous for this public official to not have any specifically designated work. Constitutionally, the VP could preside over the Senate, with voting power available in case of ties. Or at least reserve a cabinet position, preferably Finance (as that would be a serious training ground for one who should be ready anytime to assume the presidency).
For our judiciary, we should revise the Constitution so that only purely constitutional questions reach the Supreme Court, with all other issues stopping at the Court of Appeals. For the latter, the Congress can legislate that divisions of the Court of Appeals be assigned jurisdictionally and physically to different regions or provinces.
Finally, regarding our legislature, our people have had enough experience with both the bicameral and unicameral versions to make an informed decision on the matter. A presidential form of government can very much work with a unicameral Congress. However, if we do decide to stick with a bicameral legislature, then at least have the Senate constitutionally converted to having its members elected on a regional or provincial (including autonomous regions) rather than national basis. This ensures greater equal representation. The Senate members could also be appointed from the ranks of the respective Provincial Boards, instead of being directly elected by the citizens; doing so lessens costs and makes the senators more accountable to the people of that region or province.
The views expressed here are his own and not necessarily those of the institutions to which he belongs.
Jemy Gatdula read international law at the University of Cambridge. He is the dean of the Institute of Law of the University of Asia and the Pacific, and is a Philippine Judicial Academy lecturer for constitutional philosophy and jurisprudence.
HANNAH GUTIERREZ, chief weapons handler for the film Rust, will face a drug-related charge as part of her manslaughter trial next week in the 2021 fatal on-set shooting of the movie’s cinematographer, a New Mexico judge ruled Wednesday.
New Mexico District Court Judge Mary Marlowe Sommer denied Ms. Gutierrez’s request to exclude from the trial an evidence-tampering charge for allegedly giving a bag of cocaine to a crew member after the shooting to prevent police finding it.
Prosecutors contend Ms. Gutierrez’s judgment may have been impaired on the day of the shooting by her use of marijuana, cocaine, and alcohol on evenings after filming. They claim this could have led her to load a live round into actor Alec Baldwin’s gun, mistaking it for a dummy round.
The reproduction Colt .45 Mr. Baldwin was rehearsing with fired the live round that killed cinematographer Halyna Hutchins and wounded director Joel Souza.
Should prosecutors convince jurors of a link between Ms. Gutierrez’s alleged drug use and her failure to spot the live round, she could be judged to have shown criminal negligence and found guilty of involuntary manslaughter, legal experts said.
Her trial starts Feb. 21 in Santa Fe. She faces three felony charges from October 2021 — involuntary manslaughter, evidence tampering, and carrying a firearm into a bar. If she is convicted of the charges, all of which she has pleaded not guilty to, she could face over four years imprisonment.
Mr. Baldwin has pleaded not guilty to a charge of involuntary manslaughter. His trial date has not yet been set.
Also Wednesday, Judge Marlowe Sommer rejected a request by prosecutors to exclude from evidence a state worker safety investigation that found the movie’s production company showed “plain indifference” to safety hazards ranging from weapons mishandling to accidental firearms discharges on set. — Reuters
Beyond financial assistance, the SM Group supports its scholars’ holistic development through various enriching activities, fostering a fulfilling student life.
SM Foundation continues commitment to a brighter future for the Filipino youth
By Angela Kiara S. Brillantes
Education has served as a foundation of a progressive society as it holds the power to unlock personal, economic, and global growth, enabling individuals to survive and thrive in society.
Many stand as a testament that access to high-quality education is key to building successful lives and ending the cycle of poverty. However, not all are given the opportunity for quality education, as seen in an alarming education crisis in the country.
In response, SM Foundation, the social good arm of the SM Group, is supporting Filipino youth by providing college scholarship programs to meet their educational needs.
SM Foundation’s College Scholarship Program, known for its commitment to social development, helps students from low-income families achieve their dreams by providing financial aid and access to quality education. The program also helps students develop essential work and life skills, and build relationships with other scholars through fun activities and events.
A significant part of life’s journey
Empowered by the SM College Scholarship Program, Angela Sibayan achieves academic success, graduating with a Bachelor of Science in Electronics Engineering from a prestigious university in Baguio.
The SM Foundation has been instrumental for many Filipino youth, such as Angela Sibayan, a shining example of an SM Scholar Alumni, having obtained a degree in BS Electronics Engineering (BSECE) from Saint Louis University in Baguio City.
At first, college was not a sure thing for Ms. Sibayan as her family was struggling financially, and college applications were difficult as well.
But, with her commitment to finishing her studies, she looked for alternative ways and opportunities to continue college. According to Ms. Sibayan, she applied for scholarships and as a student assistant. Fortunately, she qualified for the SM Foundation’s scholarship program.
For her, receiving the scholarship was a sense of relief, comfort, and gratitude. It was her stepping stone to fulfill her and her family’s dream of finishing her studies to improve their quality of life.
Angela Sibayan, an SM Scholar (right), participated in the recent gathering of SM scholars in SM City Baguio, where she shared her inspiring story of success.
The scholarship was a lifesaver for Ms. Sibayan. She mentioned how the foundation provided her with financial aid for her tuition and monthly allowances that helped her with day-to-day expenses. With online learning, she was given an electronic tablet to make studying easier.
Remarkable opportunities have also brought her to other places. She also joined various organizations both inside and outside the university to enhance her leadership skills and establish connections, she had an online internship at a global information and communications technology (ICT) company during the pandemic; and, before graduating, she showcased her research in Thailand and even received an award for it.
Aside from financial opportunities, the foundation served as a motivation for her to keep pushing forward, especially during the pandemic.
“If it were not for the consideration and encouragement of SM Foundation, I would not be able to come back stronger and achieve more than what I have anticipated,” she said.
“The scholarship has become a big part of my life as it paved the way to where and who I am today that I can ever be proud of,” she continued. “I believe that others should strive for similar opportunities as such rare opportunities create big and positive changes, and impacts in life.”
She has even learned a lot from being an SM scholar, including insights from SMFI founder, the late Henry “Tatang” Sy, Sr.
“There is no such thing as overnight success,” she said. “There is no substitute for hard work. We must also help others in the society with what we can. Living by heart these mantras of Tatang, helped me reach greater heights and explore more opportunities that serve as stepping stones for me to achieve my goals and improve my life.”
A path to the right track
SM Scholar Joyson Abucay attended the SM scholars’ get-together in SM City Baguio, an event designed to strengthen ties and encourage a well-rounded student experience.
Another SM scholar, Joyson L. Abucay, is currently studying BS Secondary Education Major in English at Saint Louis University. For Mr. Abucay, being an SM scholar is an honor and responsibility.
For him, applying for the SM scholarship was perfect timing. The scholarship helped him to push forward and stay dedicated to his motivation and dreams for a career in English education.
“Stumbling upon the SMFI Scholarship as a student aspiring to pursue Secondary Education felt like an extraordinary opportunity. It perfectly resonates with my passion to contribute to a meaningful endeavor,” he said.
He said, receiving the scholarship program was a mix of relief and pride. Being a scholar was the turning point of his academic journey since it opened countless opportunities and helped him grow as an individual.
“[The scholarship] empowered me to shift my perspective from feeling like a background character to acknowledging my potential as the protagonist of my own story. This recognition instilled a renewed sense of self-belief and ignited a passion for pursuing ambitious goals,” he said.
With the SM scholarship, Mr. Abucay is on the right track. Currently, he is ranked top 5 and top 7 Dean’s Lister at the School of Teacher Education and Liberal Arts in his school, and participates and teaches in weekly Bible studies.
“I encourage future applicants to actively pursue similar scholarships, as they can lead to fulfilling experiences and destinations even beyond their initial plans. My core belief has always been and will always be ‘Intelligence is not measured by the number of medals you have earned, but with the quality of knowledge you have learned’,” he said.
The SM College Scholarship Application is open from Feb. 1 to March 31, 2024. To learn more, visit www.sm-foundation.org or follow @smfoundationinc on social media.
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SINGAPORE-BASED power control solutions provider Enercon Asia Pte. Ltd. is seeking to expand its services in the Philippines, its top official said on Thursday.
“What we have seen in the Philippine market, the demand is very strong… We do need an appointment of 100 people to address the demand in the Philippines,” Enercon Asia Executive Chairman Azhar Othman told reporters.
Currently, Enercon’s services in the country are being managed by 11 people, Mr. Othman said, adding that the company is looking for engineers and managers.
Established in 1994, Enercon Asia offers power control solutions for generator, grid, solar, wind, hydro, and battery storage synchronization.
Its expertise extends to power plant control, automation, SCADA (supervisory control and data acquisition), and cloud-based energy monitoring.
“On operational level, the first investment, of course, is to beef up the local team, and we have plans to at least double or triple the number of people in the Philippines,” Mr. Othman said.
Asked on the amount of investment to be allocated, he said that it is “fluid in terms whether we get the project to be deployed this year or next year.”
“We’re very excited about the future of the Philippines, and that’s why we want to invest aggressively in the people,” he said.
Mr. Othman said that the company is open to opportunities for partnerships in the Philippines.
“We are looking for local partners who understand the local structure of the business.” — Sheldeen Joy Talavera
Having spent most of my active career deep in the trenches of the lending side of financial institutions, I have seen the complex concerns of credit decision making. At the end of the day, credit analysis is a practice that combines elements of both art and science. On one hand is the science of obtaining and analyzing the facts of a loan request through objective data analysis and quantitative matrices. On the other, it requires the art of making subjective judgment about information and assessing the credibility of the borrower. Striking the right balance between these two is crucial.
Credit risk analysis is science in the sense of employing the methodology of natural science, which consists of procedures and practices of theorizing, testing and revising new information. It relies heavily on data-driven methodologies and financial ratios. Analysts scrutinize balance sheets, income statements and cash flow statements to gauge a borrower’s financial stability. Ratios such as debt-to-equity, current ratio and interest coverage provide insights on borrower’s abilities to meet its financial obligation. The science involves interpreting these numbers to assess risk.
Moreover, it delves into the statistical realm, utilizing predictive models to forecast a borrower’s future performance. Credit scoring, for example, assigns numerical values based on factors like payment history, outstanding debt and length of credit history. This objective evaluation streamlines the lending process and makes it more efficient.
However, Terence Yhip and Bijan Alagheband wrote a caveat. “A related fallacy is the belief that the mathematization of credit analysis makes it more accurate and objective. At best, mathematics and statistics are just tools, albeit indispensable, to detect, test and quantify patterns in a large data set… Used properly, they are powerful and useful tools for making informed investment decision. Mathematical models, no matter how sophisticated or carefully constructed, will still be a limited although important tool in credit analysis because much of the information inputs is qualitative.”
Credit analysis is thus also part art because it involves experience, practice, skill and imagination. Interpreting numbers requires understanding the industry dynamics, macroeconomic factors, and the qualitative aspects of a borrower’s business. This is illustrated in the assessment of management quality and strategy. Numbers tell part of the story, but understanding the people at the helm is equally critical. This human element introduces a level of uncertainty transcending pure science.
In practice, seasoned credit analysts often rely on intuition and experience in making nuanced judgments. This involves reading between the lines of financial statements, detecting subtle warning signs, and identifying both risks and opportunities not solely derived from the quantifications made. The analyst is like an artist painting a comprehensive picture, blending the colors of quantitative data and qualitative insights. The analyst’s experience and acumen contribute the shades and insights that make the overall judgment complete.
The warning here is not to equate subjectivity of the art with guesses and personal prejudices. The subjectivity discussed here is grounded in the observation of empirical data, extensive training, and seasoned experience. The overall understanding of the issues thus should improve. This is the reason why expert judgment is necessary to complement the number results.
Credit analysis is thus an intricate balance between science and art. Financial analysis and statistical modeling are combined with the intuition and interpretative skills of an artist. This fusion empowers the credit analysts to navigate the complexities of credit risk with finesse for the desired outcomes.
This blend of art and science is especially most critical when lending to small businesses which generally suffer in terms of the opacity of their financial statements. A strict by the book approach is difficult and may not result in the desired quality loan portfolio. In fact, many applications may be denied outright simply because of the absence of the right data set. How much art and science to apply depends on the problem in question. That is why banks must invest in the right people to bring alive these principles. That is what developmental lending is all about.
The reader who is a potential borrower must be keenly aware of the many intricacies of lending decisions. Awareness of what is on the other side of the bargaining table should help applicants package their approach to any borrowing transaction. It is crucial to read and comprehend the concerns of the other party to ensure transparency and avoid potential pitfalls.
The borrower should strive to provide accurate and comprehensive details to mitigate information gaps. After all, a good lending transaction should lead to a win-win arrangement where the initial problems of information asymmetry are resolved to the satisfaction of both parties. Mutual trust will lead to a long-lasting and beneficial financial partnership.
The views expressed herein are the author’s own and do not necessarily reflect the opinion of his office as well as FINEX.
Benel Dela Paz Lagua was previously EVP and chief development officer at the Development Bank of the Philippines. He is an active FINEX member and an advocate of risk-based lending for SMEs. Today, he is independent director in progressive banks and in some NGOs.
