MANILA, Philippines?Finance Secretary Cesar Purisima has found it unacceptable for banks to lend money even to those considered to be delinquent in their payment of taxes.

The banks explained that lending could fall drastically if they would be obliged to lend only to tax-compliant borrowers?an excuse Purisima seemed to find hard to swallow.

The Department of Finance earlier called on banks to help the government in its tax evasion drive. In particular, banks were asked to require borrowers to turn in the same financial statements they submitted to the Bureau of Internal Revenue prior to approval of their loans.

Purisima cited the rampant practice among corporate entities of maintaining two sets of books?one for the BIR and one for the bank they usually turn to for loans.

The financial statement submitted to the BIR is one that shows a lower income (to reduce tax liabilities), while the one that is shown to banks indicates a higher income (to avail itself of a higher amount of loan or to help ensure it gets the loan).

?Having two sets of books is illegal,? Purisima said.

If banks would require from their borrowers the same financial statements submitted to the BIR, he said, then tax evasion would be curbed and tax compliance would increase.

But some banks have expressed discomfort over the DOF plan, saying it may lead to a substantial drop in bank lending. They said the plan could even adversely affect the country?s growth prospects, where bank lending tended to support sustained expansion.

?That reasoning ... is not acceptable in a country that follows rules. I am appealing to the banks? sense of responsibility and nationalism. Let us all be responsible members of society,? Purisima told reporters Friday night.

Purisima added the DOF would not think twice in filing a case against a bank that would tolerate the use of two sets of financial statements.

?Banks should not just do business for the sake of profit,? Purisima said. ?They have to do the right thing.?