MANILA, Philippines—Banks should take advantage of time-bound tax exemptions and fee privileges under a new law meant to make it easier for financial institutions to cleanse their books of loans that went bad during the COVID-19 pandemic.
This was the appeal made by the head of the Bangko Sentral ng Pilipinas (BSP), who said his agency expected as much as P130-billion of credit gone bad and nonperforming assets to be unloaded by lenders to asset management companies under the Financial Institutions Strategic (FIST) Act.
“The timing of the passage of this law is significant,” BSP Governor Benjamin Diokno said at an online briefing. “In the past, in response to the Asian financial …
Keep on reading: BSP urges banks to use FIST law to cleanse books of billions in bad debt