MANILA, Philippines—Banks can finally get rid of their pandemic-induced bad loan buildup after President Rodrigo Duterte on Tuesday (Feb. 16) signed the Financial Institutions Strategic Transfer (FIST) Act into law.
Finance Secretary Carlos Dominguez III, who heads the administration’s economic team, announced this on Viber on Tuesday.
Under the FIST Act, banks and financial institutions can dispose of their non-performing loans (NPLs) and assets through asset management companies similar to special purpose vehicles (SPVs) formed 20 years ago after the Asian financial crisis.
Bangko Sentral ng Pilipinas (BSP) data showed that gross NPLs in the ban…
Keep on reading: Measure letting banks dispose of bad loans is now law