The Bangko Sentral ng Pilipinas (BSP) has established a rating system that will evaluate banks’ compliance with various regulations that were designed to ensure the sustainability of their favorable financial standing.
The peso moved sideways on Tuesday as the market weighed the impact of a central bank’s move to restrict access to its special deposit account (SDA) facility and favorable outlook on the domestic economy.
The country’s balance of payments (BOP) reversed to a surplus in April as robust dollar inflows, mainly remittances and foreign investments, exceeded outflows.
Bent on pushing more money out of vaults and into the economy, the Bangko Sentral ng Pilipinas has issued a memorandum to banks that will further limit their access to the BSP’s special deposit account (SDA).
After reporting a huge net loss in 2012, the Bangko Sentral ng Pilipinas has requested from the government a rescue package composed of tax exemption, additional capitalization and a mechanism for sharing of losses.
Bangko Sentral ng Pilipinas (BSP) has directed pawnshops to strictly implement identification requirements for customers to help ensure that items being pawned are not stolen goods or illicit covers for money laundering.
As speculations abound that the interest rate on special deposit accounts (SDAs) would be slashed further, the Bangko Sentral ng Pilipinas said it could not rule out another rate cut.
Responding to concerns that tightening real-estate regulations in neighboring economies could be pushing speculative demand to the Philippines, the Bangko Sentral ng Pilipinas said a new directive further limiting the exposure of banks to the property sector was being readied.
The country’s big banks can withstand shocks, such as a rise in loan defaults, should global economic problems spill over to the Philippines, as the level of their capital continues to exceed domestic regulatory requirements and international standards.
After cutting the rate on special deposit accounts (SDAs) by a total of 150 basis points, the Bangko Sentral ng Pilipinas is not likely done
with the current monetary easing cycle, a Bank of the Philippine Islands economic research said.
Burdened by huge losses from its dollar purchases and interest payments, the Bangko Sentral ng Pilipinas has asked for additional capital from the government, saying financial support would help ensure monetary stability given the surge in foreign capital and domestic liquidity.
The peso dropped on the first trading day of the week amid expectations the Bangko Sentral ng Pilipinas again would cut the interest rate on special deposit accounts.
