Bad Credit Loans Online – After FIST, BSP Wants Bank Secrecy, 3 Other Measures Adopted

Just after enacting legislation that will help ease the burden of bad loans from banks, the central bank wants Congress to adopt four more measures to help the Philippine economy weather the adverse effects of the coronavirus pandemic.

In particular, Bangko Sentral ng Pilipinas Governor Benjamin Diokno urged lawmakers to pass four key bills that would improve consumer protection, ease bank secrecy laws, boost lending to the agricultural sector, and provide support financial support to companies in difficulty.

“The Financial Consumer Protection Bill sets out a clear legal mandate and comprehensive framework for protecting financial consumers,” he told reporters in a briefing last week. “Financial inclusion, financial education, good governance and effective supervision all come into play to this extent.”

Meanwhile, the Bank Secrecy Bill will allow the monetary regulator to review bank deposit information under specific circumstances. Its supporters hope this will allow the BSP to fulfill its mandate more effectively and have a more “holistic” banking review.

The Agri-Agra bill, for its part, will strengthen rural development by proposing a comprehensive approach that takes into account the wider ecosystem of agricultural finance and the needs of the community.

“It addresses the challenges the agricultural sector faces in accessing finance,” said Diokno.

Finally, the GUIDE Bill – or Unified Initiatives of Government Financial Institutions for Struggling Businesses for Economic Recovery – seeks to strengthen the capacity of the Land Bank of the Philippines and the Development Bank of the Philippines to provide access to credit and financial assistance for companies in difficulty.

“These include micro, small and medium enterprises and strategically important enterprises severely affected by the pandemic,” Diokno said, adding that the central bank was eager to further engage both chambers of Congress for the passage of the pandemic. these bills.

Last week, President Duterte enacted a measure that would allow financial institutions to offload bad loans that have increased due to the pandemic-induced downturn in business – a framework that will provide greater protection for banks against external shocks.

Diokno said the Strategic Transfer of Financial Institutions (FIST) law would reduce the banking system’s NPL (NPL) ratio between 0.63 and 7 percentage points.

“The FIST law will allow banks to easily dispose of bad assets through asset management companies,” he said. “The new law will help maintain the stability of the banking system despite the effects of the COVID-19 pandemic. This will ease the banks’ NPL ratios in the future. ”

The draft rules for implementing the law were already being prepared by the Securities and Exchange Commission as the lead agency for the relief measure, taking into account contributions from the central bank. The draft rules are currently being circulated to industry stakeholders for their comments. INQ

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