ECONOMIC GROWTH of 7-8% this year and next should be attainable as prospects for stronger economic activity remain favorable, the head of the Bangko Sentral ng Pilipinas (BSP) said yesterday.
May 182015
Apr 192015
REMITTANCES from overseas Filipinos should stay resilient despite rising geopolitical tensions in the Middle East and North Africa, a senior official of the Bangko Sentral ng Pilipinas (BSP) said.
Apr 212014
MANILA, Philippines – The government has kept its inflation targets for this year until 2016 following an inter-agency meeting, the Bangko Sentral ng Pilipinas said yesterday. In a statement, the central bank said inflation targets have been maintained at three to five percent for this year, and at two to four percent for both 2015 and 2016. “Based on the most recent assessment of current inflation developments, evolving economic and financial trends as well as indicators of the public’s inflation expectations and the BSP’s emerging forecasts, the current (three to five percent) target for 2014 of the government remains appropriate for the Philippine economy,” the central bank said. “The government also decided to maintain the medium-term inflation target of (two to four percent) for 2015 – 2016 as it continues to be consistent with the country’s current inflation dynamics and outlook for the next couple of years and the expected higher potential capacity under a low inflation environment,” the BSP continued. The 2014 inflation target was first announced in 2010, while the 2015 to 2016 targets were announced in 2012. The DBCC itself is made up of the BSP governor, the secretaries of the departments of finance and budget and management, the Socioeconomic Planning secretary, and the executive secretary. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The inter-agency committee is tasked to set the targets and assumptions of macroeconomic fundamentals including the gross domestic product, foreign-exchange rate, and trade data, among others. The economy grew by a faster-than-expected Read More …
Apr 162014
MANILA, Philippines – The Bangko Sentral ng Pilipinas sees no reason why the high level of foreign direct investments in January would not be sustained throughout the year, an official said yesterday. “The momentum can be sustained… I don’t see any reason why not,” central bank Deputy Governor Diwa C. Guinigundo told reporters. “For January, that was actually one of those challenging times when we experienced portfolio outflows because of the US Fed’s action, but nonetheless the more durable and more permanent type of investments came in,” he continued. Net FDI inflows summed up to $1.027 billion in January, its highest level in two years, latest BSP data showed. It was primarily driven by foreign companies lending to their local affiliates to finance operations and the expansion of their firms in the Philippines. “Moving forward, we believe that the economy will continue to grow and many of the macroeconomic stories will be the same, if not improved over time,” Guinigundo pointed out. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “So we expect that the same confidence will be maintained and our foreign direct investors will continue to come in,” he added. The BSP has forecast net FDI inflows to reach $2.6 billion this year, 33 percent below the actual $3.86 billion recorded in 2013. The lower net inflow projection was due to the US Federal Reserve’s scaling back of asset purchases, which has prompted investors to move back to advanced economies from emerging markets in anticipation of an Read More …
Apr 102014
MANILA, Philippines – Despite the continued slowdown of inflation in March, the Bangko Sentral ng Pilipinas said it remains vigilant amid risks that could cause an uptick in the rise of commodity prices. “Clearly, while we see inflation falling within the target range this year and next, there are additional challenges to our operating environment this year relative to last year,” BSP Governor Amando M. Tetangco Jr. said in an e-mailed statement. Inflation eased for a second month to 3.9 percent in March on the back of lower price increases for housing, water, electricity, gas, and other fuels. This puts the three-month average to 4.1 percent, above the midpoint of the central bank’s three to five percent target range. “Inflation has slowed over the last two months. However, the upside risks to inflation that we have mentioned before still remain,” Tetangco said. “In particular, we note potential price pressures that could emanate from increases in power rates, higher food prices and potential volatility in oil prices are still present,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “The uncertainty as to when supply-side pressures will dissipate also highlights the potential risk of second-round effects,” Tetangco noted. The BSP, mandated to keep prices stable, last month kept key policy rates stable amid inflation expectations seen falling within target. However, monetary authorities hiked banks’ reserve requirement (RR) ratio by one percent age point due to the sustained high domestic liquidity growth seen since July. “[W]e continue to be mindful Read More …
Mar 162014
MANILA, Philippines – Banks, law enforcers, and consumers should all work together to minimize losses from stolen information from automated teller machine (ATM) cards, the Bangko Sentral ng Pilipinas said. “This kind of loss should be approached as a shared responsibility,” BSP Governor Amando M. Tetangco Jr. said in an e-mail to reporters over the weekend. “Banks are required to take all prudent measures to minimize the risk. Customers should be careful in handling their ATM cards. Police authorities should be running hard after the criminal syndicates,” he said. Tetangco made the comment when asked if banks should be required to provide insurance products to cover losses from ATM fraud or scams. “Without these in place, insurance will be a costly and counter-productive proposition. Customers will ultimately bear the cost either in higher fees or more restrictive services,” Tetangco said. The central bank has estimated losses to ATM fraud at P220 million in 2013, Vicente De Villa III, director at the BSP’s Supervisory Data Center, told a Senate hearing last month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Thieves have resorted to skimming, in which information stored in one’s card is stolen through devices installed in an ATM, the BSP chief said. “A skimmed card by itself will not work unless the PIN has also been compromised. So a related issue is how the password is stolen with the skimmed card,” Tetangco said. “In the past, it was the hidden camera that was the solution. Banks could validate Read More …
Feb 182014
MANILA, Philippines – The country may see the entry of more foreign banks soon as the Bangko Sentral ng Pilipinas (BSP) readies its proposed amendments to the law that will pave the way for the liberalization of foreign banks’ entry. BSP Governor Amando M. Tetangco Jr. told reporters yesterday the central bank is preparing the proposed amendments to RA 7721 or the law governing the entry and operations of foreign banks in the country. “We’re looking at that and we will be presenting our proposal to Congress, which should basically entail the liberalization of foreign bank entry,” Tetangco said on the sidelines of Euromoney’s Philippines Investment Forum 2014. The act liberalizing the entry of foreign banks in the country, approved in 1994, only allows the entry of 10 foreign banks. Tetangco said the form of liberalization needed – whether increasing the figure or completely removing the limit – will still be assessed. “That’s something we need to discuss but the overall thrust is to liberalize our regulations with respect to the entry of foreign banks,” Tetangco said. “There are different ways and we are looking at those possibilities now,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Philippines is gearing up for the Association of Southeast Asian Nations Economic Integration set to be launched by 2015. Part of this is the financial integration which will give the region’s banks a bigger market and more opportunities for growth. Tetangco said the country needs to amend RA 7721 Read More …
Feb 112014
THE BANGKO Sentral ng Pilipinas (BSP) has granted regulatory relief to banks affected by tropical depression Agaton (international name: Lingling), to allow them to lift penalties on clients unable to pay their dues.
Jan 232014
MANILA, Philippines – Amendments to the central bank charter that would give the institution additional powers of surveillance over banks and its sister companies is “critical” for financial stability, the International Monetary Fund said. “That’s critical… that’s a very important aspect and most countries have that actually,” IMF resident representative Shanaka Jayanath Peiris told reporters. “The lesson from the global crisis was that there should be a regulator with powers to ensure financial stability, to cover and avoid regulatory gaps, and to be able to look at institutions including financial and non-financial entities,” he continued. Peiris was commenting on the Bangko Sentral ng Pilipinas’ proposed amendments to the New Central Bank Act of 1993 aimed at strengthening the institution’s monetary and financial stability mandates. The said amendment is deemed important in order to trace where bank loans go to or if these funds are being granted as fresh loans by the borrower. This will help the BSP assess the risks faced by the banks if the end-borrower does not pay the firm that originally received the loan from the bank. “From the global crisis, we learned that not knowing was the problem but also you need the power to act as well,” Peiris said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “So first you need to enhance the monitoring which also partly being done but you also have to have the legal mandate for it if you need to act in the future,” he added. The global financial Read More …
Jan 162014
MANILA, Philippines – The net inflow of foreign portfolio investments, also known as hot money, surged eight percent in 2013, exceeding the central bank’s projection on the back of the country’s sound macroeconomic fundamentals. Bangko Sentral ng Pilipinas data showed net hot money inflow went up to $4.225 billion last year from $3.911 billion in 2012. It was also way above the revised $3.2 billion assumption of the central bank for 2013. Foreign portfolio investments are also called hot money given the ease with which the funds enter and exit economies. The BSP attributed the increase in hot money inflow to the country’s sound macroeconomic fundamentals; sustained high growth in the first three quarters; (and) the investment grade ratings given to the Philippines. The central bank also said crisis in developing countries such as the United States and those in the euro zone also caused funds to be diverted to emerging economies such as the Philippines. Gross inflows jumped 54 percent to $28.404 billion in 2013 from $18.483 billion in 2012, while gross outflows climbed 66 percent to $24.180 billion from $14.571 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last year’s gross inflows were the highest recorded since 1999, surpassing the previous record high of $18.5 billion in 2012. “There was a steady stream of investment inflows of more than $2 billion a month except in the ghost month of August, believed to be unlucky for business, and in December due to the announcement of the forthcoming Read More …