BSP – Page 3 – Maniolas

Net foreign direct investments surge 66%

Economy

Jan 102014

Net foreign direct investments surge 66%

MANILA, Philippines – Net foreign direct investment inflows rose 66 percent to $254 million in October last year from $153 million in the same period in 2012 amid the country’s robust growth and favorable macroeconomic fundamentals, the Bangko Sentral ng Pilipinas reported yesterday. “The notable rise in foreign investments into the country reflects favorable investor sentiment on the back of the country’s macroeconomic stability amid challenging global conditions,” the central bank said. The economy expanded 7.4 percent in the first nine months of last year, faster than the government’s six- to seven-percent target. Inflation stood at an average of three percent in 2013, at the low end of the BSP’s three- to five-percent target range. Central bank data showed net equity capital grew 19 percent to $68 million in October from $57 million in the previous year, while reinvested earnings plunged 44 percent to $50 million from $90 million. Placements in debt instruments or borrowings made by local subsidiaries from the parent companies, meanwhile, surged to $135 million from $6 million. Gross equity placements in October last year came from the US, Singapore, Switzerland, Hong Kong, and Taiwan. These funds went into manufacturing, transportation and storage, financial and insurance, real estate, and mining and quarrying. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In the first 10 months of 2013, net FDI inflows went up 35 percent to $3.361 billion from $2.485 billion in the same period in 2012. Net equity capital placements slid 48 percent to $658 million Read More …

Remittances help boost PHL savings rate in 2012

Entertainment

Jan 092014

Remittances help boost PHL savings rate in 2012

An employee counts U.S. dollar bills before changing it to Philippine Pesos inside a money changer in Manila September 19, 2013. The Philippine central bank said remittances from overseas Filipino workers (OFWs) have allowed households to save money, boosting the country’s savings rate.(MNS Photo) MANILA (Mabuhay) – Remittances from overseas Filipino workers (OFWs) have allowed households to save money, boosting the country’s savings rate, according to the Bangko Sentral ng Pilipinas (BSP). Based on the BSP’s latest Flow of Funds report, domestic savings has expanded by 6.8 percent to P2.001 trillion in 2012, with households accounting for the bulk of that amount. “The economy’s savings momentum is sustained amid solid overall revenue performance of all sectors and the country’s sound macroeconomic fundamentals,” the BSP said. The FOF presents a summary of financial transactions among the different institutions of the economy, and between these institutions and the rest of the world. It identifies which institutions are net borrowers and net lenders for the year. Institutions are categorized into four, namely financial corporations, non-financial corporations, the general government, and households. The household sector remained the top saver in the economy for the fifth consecutive year, accumulating P928.9 billion in savings. “This was partly brought about by the steady stream of overseas Filipinos’ remittances,” the BSP said. The non-financial corporations sector has generated savings of P713.4 billion due to the broad-based growth in savings across sub-sectors. The general government sector, meanwhile, registered the highest growth in savings at 33.5 percent to P252.2 billion Read More …

BSP sets release of new coins

Economy

Dec 182013

MANILA, Philippines – Filipinos may soon be using new coins as early as 2015 as the Bangko Sentral ng Pilipinas (BSP) is finalizing the design and features of the currency. “We are now discussing the new generation coins… A committee is now discussing the design for the new coins and by 2015, this is expected to be finalized,” BSP Deputy Governor Diwa C. Guinigundo said. “So probably by 2015 or 2016, we will be launching the NGC (new generation currency) coins,” he added. Guinigundo further said the design and make of the coins will have to be approved first by the BSP Governor and the President before they are launched to the public. The new coins will match the new generation bank notes launched in late 2010 and may have lesser metal content. At the same time, new technologies to prevent counterfeiting will be introduced, along with features that would help the blind distinguish between the denominations.

BSP keeps key rates steady

Economy

Dec 122013

MANILA, Philippines – The Bangko Sentral ng Pilipinas decided yesterday to keep its key policy rates steady amid a manageable inflation environment. The BSP’s overnight borrowing and lending rates were maintained at 3.5 percent and 5.5 percent, respectively. Interest rates on special deposit accounts facility and the reserve requirement ratios were also left unchanged. “The Monetary Board’s decision is based on its assessment that the inflation environment remains manageable,” BSP Governor Amando M. Tetangco Jr. said in a briefing. The country’s average inflation rate of 2.8 percent for the first 11 months of the year was still below the BSP’s full-year target range of three to five percent. “While inflation forecasts have slightly risen due to the recent increase in global oil prices, utility rate adjustments, and the impact of the recent typhoons, the future inflation path continues to be within the target over the policy horizon since the uptick is expected to be largely transitory,” he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Market expectations of inflation remain consistent with the target range,” he added. The Monetary Board expects inflation to average 2.9 percent this year, slightly below its previous forecast of three percent announced in October. But the central bank hiked its 2014 inflation forecast to 4.5 percent from four percent on the back of higher oil prices, power adjustments and the impact of recent natural calamities. The 2015 inflation forecast, meanwhile, has been downgraded to 3.2 percent from 3.4 percent. The Monetary Board is Read More …

BSP stands ready to curb peso volatility

Economy

Dec 112013

BSP stands ready to curb peso volatility

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said yesterday it stands ready to curb any excessive volatility in the peso’s movements against the dollar. BSP Governor Amando M. Tetangco Jr. said this amid the weakening streak of the peso, which went back to 44-to-a-dollar level last Monday. “As we understand it, the peso weakness over the past couple of days is partly due to real demand for specific import requirements and partly due to some portfolio adjustment of funds in reaction to Fed (US Federal Reserve) tapering concerns,” Tetangco said. “We are closely monitoring developments, and, as is our policy, will maintain a strategic presence in the market, as needed to curb excessive volatility in foreign exchange rate movements,” he added. The peso on Wednesday closed at a 44.12 per dollar, strengthening from Tuesday’s finish of 44.29:$1. Tuesday’s close was the lowest since Sept. 6. Eduardo Francisco, president of BDO Capital & Investment Corp., said foreseen rise in remittances due to the Christmas may partly strengthen the peso before the year ends. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “[I] believe it will remain weak but hope it will be back to 43.50:$1 level by year end as more remittances come in,” he said. Historically, the volume of remittances are highest during December due to the Christmas season. But the central bank earlier noted the volume may even be higher this year as Filipinos abroad may send more to their families following the devastation of recent Read More …

BSP relaxes ‘know-your-customer’ requirement for Yolanda victims

Entertainment

Dec 042013

BSP relaxes ‘know-your-customer’ requirement for Yolanda victims

(Bangko Sentral ng Pilipinas logo) MANILA (Mabuhay) – The Bangko Sentral ng Pilipinas (BSP) has relaxed the “know your customer” requirement until the end of the year, as the onslaught of super typhoon Yolanda destroyed essential documents. The monetary board, the policy making body of the BSP, approved to waive temporarily, the presentation of official identification documents in processing transactions of typhoon victims. Under the Anti-Money Laundering Act, the know your customer is a requisite among financial institutions to prevent banks from money laundering activities. It establishes a means of verifying their clients’ identities. It covers residents of affected areas namely Leyte, Samar, Cebu, Iloilo, Capiz, Aklan and Palawan provinces, with daily transactions of up to P50,000 or its foreign currency equivalent. The clients however, should present written certification that they are typhoon victims, although notarization is not required. Once the relaxed period lapses, identification documents will be required and records will be updated. (MNS)

BSP bats for more reforms Stronger insolvency framework pushed

Economy

Dec 032013

BSP bats for more reforms Stronger insolvency framework pushed

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said the country needs a stronger insolvency framework to reduce the losses incurred by the bankrupt firms’ creditors. “We really need a stronger insolvency framework and this weakness is not only true for the Philippines but it’s also true for other countries, as highlighted by the Asian financial crisis (in 1998),” BSP Governor Amando M. Tetangco Jr. told reporters on the sidelines of the Forum on Asian Insolvency Reform. “A number of reforms have already been implemented but the task now is really to improve the quality… not only the framework but also the implementing agencies have to be empowered,” Tetangco said. Tetangco explained that weak insolvency systems were one of the key problems of Asian markets that eventually led to the Asian financial crisis in 1998. Tetangco said the government needs to focus on the proceedings following a company’s declaration of bankruptcy, specifically the liquidation and division of remaining assets to creditors. “Having a well-developed insolvency law is important for the development of an effective insolvency system. But this is not enough, as we have seen in countries that have modernized their laws. We need to ensure its proper, effective and timely implementation,” Tetangco said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “It is equally important thereforeto focus on developing strong institutions that would interpret and implement the laws. Combined, a well-developed insolvency law and strong institutional capabilities provide a good foundation for a smoothly functioning insolvency system,” Read More …

Money supply expands to P6.3 T in October

Economy

Nov 302013

Money supply expands to P6.3 T in October

MANILA, Philippines – Demand for money continues to grow in October as domestic liquidity (M3) rose 32.5 percent year-on-year to P6.3 trillion, Bangko Sentral ng Pilipinas (BSP) data showed. The rise was slightly faster than the 31.3 percent expansion recorded in September. M3 is one of the economic indicators being watched closely by the central monetary authority as this may have an impact on the country’s inflation rate. It consists of money supply, peso, savings and time deposits and deposit substitutes of money generating banks or deposit money banks. If the M3 level is high, this means there is too much money in the financial system. which may trigger inflationary pressures. On a month-on-month basis, seasonally-adjusted M3 increased two percent, similar to the expansion record the previous month. The BSP attributed the money supply growth to the sustained expansion in domestic claims, or credits to the domestic economy. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Domestic claims grew 11.6 percent in October from 10.9 percent in September due to the continued increase in claims on the private sector (16.2 percent), in line with the sustained growth in bank lending. Net claims on the public sector, on the other hand, rose five percent in October, largely as a result of the increase in credits to the government. Net foreign assets (NFA) also grew 10.5 percent, from 7.7 percent in September. The BSP said its NFA position improved on the back of robust foreign exchange inflows from remittances, BPO receipts Read More …

Banks’ real estate exposure rises

Economy

Nov 202013

MANILA, Philippines – Local banks’ exposure to the property sector continued to grow in end-June from the previous quarter, but the Bangko Sentral ng Pilipinas assured these remain manageable. Universal, commercial and thrift banks’ real estate exposure (REE) summed up to P900.1 billion as of June, up seven percent from end-March. “The increase in REE was mainly driven by real estate loans which accounted for 84.7 percent of their total exposure to the real estate sector,” the central bank said. Real estate loans went up seven percent to P762.5 billion in the second quarter from P715.5 bililon in the previous three months. At the same time, investments in the property market, which make up 15.3 percent of the total REE, also climbed during the period. Investments in real estate securities jumped eight percent to P137.7 billion in end-June from P127.1 billion in the first quarter. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The central bank stressed the total REE only made up 21.7 percent of the banking system’s total loan portfolio of P4.2 trillion in June. “In line with its financial stability objectives, the BSP is keeping an eye on measuring the whole landscape under the new coverage of banks’ exposure to the real estate industry,” the central bank said. “The BSP is keen on monitoring the credit conditions that support the heightened activity in property development to prevent potential impairment of intermediation.” The BSP last year introduced stricter regulations in monitoring banks’ exposure to the real estate Read More …

Inflation seen rising in Nov-Dec

Economy

Nov 192013

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said the inflation rate in the Philippines would rise in the last two months of the year following the massive destruction brought about by Super Typhoon Yolanda in the Visayas region. BSP Governor Amando M. Tetangco Jr. said inflation is now seen averaging 3.2 percent this year and 4.5 percent in 2014, both are upward revisions of an October forecast of three percent and four percent, respectively. Tetangco said that the BSP will announce the final full-year inflation forecast on Dec. 12, its last rate-setting meeting. “(This is just) one of the scenarios in our modeling exercise (that will be) firmed up before (the) next policy meeting,” Tetangco said in a text message. Typhoon Yolanda ravaged the Visayas region earlier this month, killing thousands, wiping out villages and destroying billions-of-pesos worth of agriculture and infrastructure. BSP Deputy Governor Diwa C. Guinigundo said the jump in the inflation rate is one of the impacts of the natural disaster given possible supply shocks. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “That’s the staff’s initial assessment considering the effects of the disaster,” Guinigundo said. “(We) will continue to monitor until the last Monetary Board meeting on monetary policy in December,” he added. The Monetary Board has kept overnight borrowing and lending rates at 3.5 percent and 5.5 percent, respectively, since the start of the year. It has been able to do so on the back of the country’s robust economic growth and Read More …

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