BIZ BUZZ: The crackdown on digital banking ‘backdoor’

Gone are the days when aspiring digital bank operators can buy an existing rural or thrift bank to secure a Philippine license without having to compete for the few available slots.

The Bangko Sentral ng Pilipinas (BSP) has found less than a handful of such digital banking wannabes going through the backdoor, Deputy Governor for financial supervision Chuchi Fonacier told Biz Buzz.

One of them is Seabank Philippines Inc. of consumer internet company Sea Ltd., the group that owns e-commerce platform Shopee. However, Fonacier quickly pointed out that Seabank has already complied with the P1-billion minimum capital required of digital banks.

In 2022, Sea group quietly bought 57-year-old Banco Laguna Inc. to enter the digital banking space after the six slots had been farmed out.

But for players other than Seabank that similarly took such route, the BSP has summoned them as part of its due process.

“When we call out, they need to explain,” Fonacier said. “If you’re a rural bank or thrift bank but your business model is that of a digital bank, we will require you [to comply with minimum capital].”

No longer is it a gray area. Anyhow, the BSP is set to reopen the licensing of digital banks to four new players—interestingly matching the current count of backdoor players—by next year. From hereon, each player has to earn its rightful spot. Any entity that needs to comply must do so immediately, Fonacier said.

“For us, there should be no backdoor,” the regulator said. —Doris Dumlao-Abadilla

‘Tagpuan’ at Clark airport

The Clark airport complex will have a new attraction with the construction of the P10-million “Tagpuan” park, a 3,200-square-meter pocket park where commercial space will be dedicated to food carts and other vendors.

The park is envisioned to become a green venue with lots of seating areas for visiting guests. It is also seen as a venue for public art installation.

The Clark International Airport Corp. (CIAC) said it seeks to “offer a space for employees, visitors and the public to relax and enjoy outdoor activities.”

The park can also be a potential venue for hosting small events or corporate gatherings.

The CIAC has already published an invitation to bid for interested contractors to turn this plan into a reality. Proponents have until Dec. 18 to submit their proposals. —Tyrone Jasper C. Piad

Deputy DA spokesperson

Joycel Panlilio, a lawyer who has been serving the agency for a long time, is the new deputy spokesperson of the Department of Agriculture (DA).

In Special Order No. 1747, the DA announced the appointment of Panlilio, who is also the agriculture assitant secretary for high-value crops and assistant secretary for “Sagip Saka” and intellectual property.

In this new role, Panlilio is responsible for enhancing DA’s media relations and speaking to the public to clear up confusion and false or misleading coverage.

Furthermore, she will appear at press conferences on behalf of Agriculture Secretary Francisco Tiu Laurel Jr. and/or spokesperson and Assistant Secretary Arnel de Mesa. —Jordeene B. Lagare INQ