MANILA, Philippines—The Philippine banking system will enjoy better insulation against shocks after President Rodrigo Duterte signed into law a measure that will allow financial institutions to unload their bad assets that have risen due to pandemic-induced business slowdown.
Bangko Sentral ng PIlipinas (BSP) Governor Benjamin Diokno welcomed as “great news” the passage of the Financial Institutions Strategic Transfer (FIST) Act into law.
Because of this measure, the BSP said non-performing loan ratio of the banking system will likely decline by anywhere between 0.63 and 0.7 percentage points.
“The FIST law will allow banks to easily dispose bad assets through asset management…
Keep on reading: BSP says FIST law ‘great news’ that would reduce banks’ bad loans