The Bangko Sentral ng Pilipinas (BSP) yesterday assured the public of the continued access to and delivery of essential banking services amid the Enhanced Community Quarantine (ECQ).
In addition, the BSP stressed that it’s COVID-19 package of relief measures remains in place. These aim to incentivize lending, promote continued access to financial services and support the continuity of delivery of banking services.
Benjamin Diokno, BSP Governor, said that consistent with the policy intent of these measures, banks have been active in providing financial relief to their borrowers.
Data from the BSP showed that as of end-June 2021, the level of restructured loans of banks jumped to P328.6 billion, almost seven times the P48.7 billion posted for the same period last year.
This was equivalent to 3.1 percent of total loans, up from 0.5 percent recorded a year ago.
Loans to micro-, small-and medium enterprises (MSMEs) that are used as alternative compliance with the reserve requirements have also surged since the start of the pandemic.
As of reserve week ending 29 July 2021, loans to MSMEs that were utilized as alternative compliance with the BSP’s reserve requirements amounted to P188.7 billion, up from the P8.7 billion recorded as of end-April 2020.
“These developments indicate banks’ continuing efforts to assist borrowers weather the challenges faced during this difficult period. Thus, customers are encouraged to approach banks regarding adjustments to their loan terms to match their cash flows and paying capacity,” Diokno said.
He added customers may also make use of the BSP Online Buddy or BOB to raise complaints and concerns on their financial transactions.
Meanwhile, Diokno said the Monetary Board decided to close the window for the submission of applications from new digital banks, including converting banks, starting September 1, 2021.
“The closure of the application window will allow the BSP to monitor the performance and impact of digital banks on the banking system and their contribution to the financial inclusion agenda,” Diokno said.
“We need to ensure that the business environment continues to allow healthy competition among banks enabling them to offer innovative and competitive financial products and services to their clients,” the Governor added.
Digital bank applications that are received by the BSP until 31 August 2021 will be processed on a first-come, first-served basis and will be assessed for completeness and sufficiency of documentation/information as well as compliance with the licensing criteria on the establishment of digital banks. Applicants that are able to submit the complete documentation on or before the said closure date will be processed by the BSP.
The applications received on or before 31 August 2021 with noted documentary deficiencies or which do not meet the BSP’s pre-qualification criteria will be returned and will not be subject to further processing.
The organizers will be informed that their applications will be deemed closed. After 31 August 2021, the BSP will no longer entertain nor accept new or returned applications.
To date, the Monetary Board has already approved the application of five digital banks, including two (2) incumbent banks which have converted their existing licenses to a digital bank license. These include UNObank, UnionDigital Bank, and GoTyme.
While Overseas Filipino Bank Inc. and Tonik Bank are banks that converted their existing license to digital banks.
The Monetary Board approval corresponds to the first of the three-stage licensing process. Meanwhile, the BSP is currently processing two other digital bank applications.
“As these tech-savvy, customer-centric players introduce innovations in the banking sector, we are confident that the BSP is on track to achieving its digitalization and financial inclusion goals,” Diokno explained. — Jimmy Calapati
