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Women shaping Philippine monetary policy
Women have made significant strides as leaders in the Philippine financial services industry even as challenges continue to persist. At the helm are two distinguished female members of the Monetary Board (MB) – the policy-setting body of the Bangko Sentral ng Pilipinas (BSP) –both of whom are breaking the bias for women in finance......»»
BSP issues guidelines for payment systems
The Bangko Sentral ng Pilipinas (BSP) has released its first Manual of Regulations for Payment Systems (MORPS), a formal compilation of all payment system regulations approved by the Monetary Board as of end-December 2023......»»
Bank loans used as RRR compliance hit P6.4 billion
Mid-sized and small banks have extended around P6.4 billion loans to micro, small and medium enterprises (MSMEs) as well as large companies, and booked these loans in compliance with their reserve requirement ratios, according to the Bangko Sentral ng Pilipinas......»»
March inflation may pick up amid high food prices
Inflation likely accelerated for the second straight month in March, mainly driven by high rice prices, prompting the Bangko Sentral ng Pilipinas (BSP) to keep borrowing costs unchanged at its next policy review in April, analysts said......»»
Philippines posts 196 mln USD deficit in February
MANILA, March 19 (Xinhua) -- The Philippines' overall balance of payments (BOP) posted a 196-million-U.S. dollar deficit in February, significantly lower from the 895-million-dollar BOP deficit recorded a year ago, the country's central bank said on Tuesday. The Bangko Sentral ng Pilipinas (BSP) said the BOP deficit in February reflected outflows arising mainly from the national government's foreign currency deb.....»»
Buy Now, Pay Later scheme revenue to reach $1.92 B
Revenues from online shopping applications offering the “buy now, pay later” scheme are forecasted to reach $1.92 billion by the end of the year because of the good financial landscape in the Philippines, software developer Appdome said. In fact, according to the Bangko Sentral ng Pilipinas, account ownership among Filipinos stood at 56 percent at end-2021. According to Jan Sysmans, Mobile App Security Evangelist at Appdome, though efforts are underway to increase this to 70 percent by the end of this year, a significant portion of the population remains underbanked or unbanked. However, this success can only be made possible by developers keeping their apps secure from all manner of threats plaguing the mobile landscape. Customer protection prioritized “In response to the changing threat landscape, Buy Now Pay Later app providers must prioritize customer protection. They can do this by automating protections and embedding defense into the developmental lifecycle,” he said. BNPL apps offer mobile shoppers a financial installment service that allows them to delay paying the full price. Micro-credit loans are used to acquire items at a reduced cost, including vacation trips, electronics, and exercise equipment. The remaining amount will then be settled at an agreed-upon date. Currently, the Philippines boasts numerous BNPL apps for users to choose from. These include TendoPay, LazPayLater, Grab PayLater, UnaPay, BillEase, Cashalo, Plentina, Atome and GCredit. Threats Sysmans said BNPL apps’ rising popularity can be attributed to their easy application and credit acquisition processes. However, he said these features have also attracted opportunistic cybercriminals looking to prey on new victims and drain their funds for their own nefarious purposes. Without proper security, users will lose faith in BNPL apps and turn to other competing services that can prioritize their safety. Sysmans said there are five tactics for which BNPL app makers need to be prepared, namely weaponizing BNPL apps for synthetic fraud, overlay and keylogging tactics, data and application programming interface breaches, trojan apps, and hacking and fraudster research. “Hackers understand that one doesn’t simply attack their targets head-on. They first need to be familiar with the app’s environment and features. The best way to do that is by interacting with the primary workflows, such as purchases. Developers can stay on top of this tactic by obfuscating their app’s coding and utilizing solutions that can block the use of Dynamic Binary Instrumentation toolkits like Frida,” he said. Security With more customers adopting BNPL apps to pay for their goods, the need to prioritize security becomes greater than ever. “This is why app makers need to embrace a shift-left mindset that pushes the integration of protection features at the earliest stages of development. And with the mobile security solutions mentioned above, they can continue to build trustworthy experiences, leading to greater user loyalty,” he said. “Appdome empowers app developers with tools and capabilities to seamlessly integrate robust mobile cyber defense measures into their apps without disrupting the development cycle or compromising user experiences. Through Appdome’s advanced mobile malware protection, BNPL app providers can safeguard their users’ data from cyber threats, enhancing trust and fostering loyalty,” he added. The post Buy Now, Pay Later scheme revenue to reach $1.92 B appeared first on Daily Tribune......»»
Phl phishing attacks highest in SE Asia, linked to 2% loss in GDP
At least two percent of the global Gross Domestic Product was lost due to increasing cases of online fraud, phishing, and scams, Senator Mark Villar said Monday. Villar, presiding over the hearing by the Senate Committee on Banks, Financial and Institutions and Currencies, lamented that the proliferation of online scams threatened not only the potential of online banking but also the stability of the banking system and the hard-earned money of the Filipino people. “While digitalization and the widespread use of digital finance opened opportunities for the banking sector, it is also apparent that opportunists also devise new methods to take advantage of this emerging financial market,” Villar said. While there’s an increasing number of Filipinos using online payment platforms, Villar noted that crimes related to digital financial transactions are also growing. “A significant number of Filipinos have been targeted by digital fraud attempts and a portion of them eventually fall victim to it,” he said. The Bangko Sentral ng Pilipinas said it has received more complaints regarding online banking transactions compared to those related to using Automated Teller Machines and credit cards, among others. In fact, the Anti-Money Laundering Council reported a rise in suspicious transactions in 2020 comprising acts of phishing, skimming, and transactions related to money mules. The Security Exchange Commission likewise noted a significant rise in complaints related to online fraud committed by online lending platforms. Villar said as these scammers take advantage of their victims, they also rattle their victims' trust in the country’s banking and financial institutions. “Trust, being the currency of the banking system, must be well-earned. Given the proliferation of online fraudsters, it is imperative that we strengthen our efforts to keep scammers at bay,” he added. Among the existing laws aimed at fighting online bank fraud include Republic Act 11765 or Financial Products and Services Consumer Protection Act; the RA 11934 or Subscriber Identity Module (SIM) Registration Act; and RA 10175 or Cybercrime Prevention Act of 2012. Villa said as criminal elements adapt to legislation to perpetuate fraud, hence, “there is a need to legislate new laws to keep them off track” such as the proposed Anti-Financial Account Scamming Act. “This measure will reinforce and earn back the public’s trust in our financial institutions,” he said. The number of phishing attacks in the Philippines during the first half of 2022 already surpassed the number of attacks at over 1.8 million detected compared to 1.34 million attacks during the entire year of 2021. Villar described the spiking cases of online scams as “extremely concerning.” This, as data from Kaspersky Security Network revealed that cases of financial phishing attempts in the Philippines from February to April 2022 were highest in Southeast Asia. Villar emphasized that the Anti-Financial Account Scamming Act or AFASA will evidently deal with cases of online fraud and will provide a regulatory framework that penalizes scammers as well as entails safeguard measures to protect Filipinos and their financial accounts. “Because of the lack of a regulatory framework that penalizes these scammers, there are and there will be more victims in the foreseeable future,” he added. AMLC executive director, Matthew David, said they required banks and payment operators to maintain the 'Know Your Customer document' for their system and store a system that could verify the identity of the clients, including the bank account owners. “They are required to do some verification in order to make sure the true identity of the customers,” David added. The public committee hearing was followed by an Executive Session due to the confidentiality and sensitivity of the issues and information that will be discussed. Villar said the executive session was conducted to ensure that law enforcement measures being undertaken to apprehend and prosecute scammers will not be disrupted. The post Phl phishing attacks highest in SE Asia, linked to 2% loss in GDP appeared first on Daily Tribune......»»
Salmon, Oradian seal partnership serving unbanked Filipinos
Oradian has included fintech innovator Salmon in its roster of valued customers, providing expertise by adopting Oradian’s advanced core system to drive its growth strategy, and to help the government attain its goal of improving the numbers of unbanked Filipino Currently servicing tens of thousands of customers, Salmon is a consumer fintech company built by a team of finance professionals and entrepreneurs and backed by world-class investors that develop better and more inclusive financial products with a focus on innovation, flexibility, security, relentless focus on customer care and added value for clients. The fintech firm started originally with in-store purchase financing, as Salmon had intended to expand its range of financial services to cover all the daily needs of clients in the Philippines and beyond, bridging the financial inclusion gap for millions of consumers. “We’re delighted to have found a technology partner in Oradian. As we enter a new stage of our institutional development and ready ourselves to deliver new product offerings, Oradian provides some essential tools that will power our continued growth,” said George Chesakov, CEO and co-founder of Salmon in a press conference on Wednesday. Founded in 2022, Salmon has already attracted a cumulative $36 million in equity and debt funding, reflecting deep confidence in its business model and growth potential. Essential recipe “Oradian offers a vital combination of flexible, scalable, best-in-class technology and comprehensive in-market customer support and expertise that enables us to drive growth, scale rapidly, and boost our performance. This is an essential recipe for remaining competitive in an increasingly crowded fintech landscape,” said Chesakov. Salmon’s early success is indicative of the strength and health of the Philippines’ financial technology market, particularly as the Bangko Sentral ng Pilipinas and the national government seek to promote digital lending and boost financial inclusion. The BSP in its report last month said 22 million Filipinos have gained access to formal financial accounts between 2019 and 2021. According to the 2021 Financial Inclusion Survey of the BSP, 34.3 million Filipino adults remained unbanked, as the country’s banked population was at about 56 percent of all adults in 2021, improving from just 29 percent in 2019. First cloud-native core banking system Oradian, the first cloud-native core banking system to be used by BSP-regulated financial institutions in the Philippines, has been serving institutional customers for more than 10 years, enabling enhanced growth and performance with its cloud-native, API-enabled platform. Reflecting on this new partnership, Antonio Separovic, CEO and co-founder of Oradian said: “Oradian’s mission is to partner with high-growth, tech-enabled financial institutions to drive growth and promote financial inclusion for last-mile communities. “Oradian’s system is designed for sophisticated tech-led teams like Salmon that leverage technology to scale financial services throughout the entire community — we’re excited to work alongside George and Salmon’s team as they meet these goals.” The post Salmon, Oradian seal partnership serving unbanked Filipinos appeared first on Daily Tribune......»»
Lapid eyes credit assistance program for OFWs
Senator Manuel “Lito” Lapid is rallying for the establishment of a credit assistance program for Overseas Filipino Workers to recognize their contributions to the country’s economy. Lapid filed Senate Bill 2390 or an Act Establishing a Credit Assistance Program for Overseas Filipino Workers, which allows beneficiaries to avail themselves of a loan of up to P50,000 from the Overseas Worker and Welfare Administration. “It is not enough that we acknowledge the contributions of OFWs to the country. A word without corresponding action is nothing. In recognizing their immense role in our economy, we must respond to their needs to repay their sacrifices,” he said. Lapid explained the program targets to defray the living expenses of OFWs’ dependents during the first three months of absences, as well as recruitment expenses, including placement fees, documentation costs, and plane tickets. Under the bill, the loan shall be paid in 12 equal monthly installments or more but not exceeding 24 months at a preferred interest rate not to exceed six percent per annum. “It cannot be overly stressed how important the role OFWs play in the shaping of the country's economy,” Lapid said, noting that cash remittances from OFWs hit a record high in 2021, while the world was reeling from the effects of the COVID-19 pandemic. Records from the Bangko Sentral ng Pilipinas showed that cash remittances coursed through banks rose by 5.1 percent to $31,418 billion in 2021 from $29,903 billion in 2020. “For this reason, the least that we can do to repay them is to craft programs that would allow access to services more easily and without the rigorous processes which are laden with bureaucratic runarounds,” Lapid pointed out. The post Lapid eyes credit assistance program for OFWs appeared first on Daily Tribune......»»
Grumbling mounts
There continues to be discontent among certain sectors regarding the proposed policy on military pensions, and now there is another idea floated to scrap the free college education. Just like a low rumbling sound of thunder, affected sectors are grumbling over Finance Secretary Benjamin E. Diokno’s statement that the free access to state university education is “unsustainable” — which is indicative of a potential effort to repeal a landmark legislation enacted during the administration of President Rodrigo R. Duterte, who appointed Diokno as Budget and Management secretary and then Bangko Sentral ng Pilipinas governor. For six years as a member of Duterte’s economic team, we were oblivious to Secretary Diokno’s opposition to Republic Act 10931, or the Universal Access to Quality Tertiary Education Act of 2017. Straight from the horse’s mouth during a forum organized by the University of the Philippines School of Economics on 19 August, he said the law is anti-poor since “there are more poor people who do not attend college.” To say that subsidizing college education really “consumes a lot of funds” is irresponsible, anti-Filipino and anti-development. RA 10931 was embraced by Filipinos during a period when the financial situation of the government appeared stable. The blame for becoming indebted to finance the efforts to control the pandemic falls neither on the people nor on the national government. Fast forward to post-pandemic, there is no convenient excuse for sacrificing human investment through debt for education to support lavish government expenditures in the wake of the national government pronouncements that the gross national product increased to P5.643 billion in the second quarter of 2023 from P5.592 billion in the first quarter of 2023. Truth be told, 2.46 million students were beneficiaries of a free college education during the academic year 2021-2022. It is not only they who are reaping the rewards of one of the “most long-lasting” legacies of former president Duterte’s administration, but their families, communities, and the country. Jade Baguna, a Tertiary Education Subsidy or TES program graduate in Social Work, cannot help but share the positive impact of the policy on his life and his family. Despite facing challenges like long walks to and from school and a meager weekly allowance during high school, the program enabled him to complete his degree, achieve the eighth position in the board examination, and become a Social Work instructor. The Finance Secretary may have lost his train of thought that investing in free college education has long-term economic benefits. A well-educated workforce is crucial to driving innovation, technological advancements, and economic growth. By providing access to higher education, the country can nurture a pool of skilled professionals who will contribute to various industries, drive entrepreneurship and attract investments. At a time when the need to rejuvenate an economy is paramount, scrapping free college education may limit the availability of qualified workers, hinder economic development and reduce global competitiveness. One of the most compelling arguments for a free college education is that it promotes equal opportunity and social mobility. By removing financial barriers, individuals from all socioeconomic backgrounds can pursue higher education based on merit and potential rather than financial means. This ensures that talented and motivated students, regardless of their background, have a fair chance to improve their lives and contribute to society. Sec. Diokno’s sustainability concerns sparked a debate. Commission on Higher Education Chairperson Prospero de Vera said there is nothing better than for a country to invest in its young people and produce highly skilled manpower. “It’s the best anti-poverty strategy. You educate an individual, you make him employable, and you make sure the poverty stops with him or with her,” he said. For Cagayan de Oro 2nd District Representative Rufus Rodriguez, taking out the scholarship program is synonymous with seeing a decay of education in our country. “Education is the great emancipator of people from the bondage of poverty. With education you are able to move forward with your family,” he said. Senator Francis Tolentino has this to say: “Perhaps the lack of money of the national government should not be the reason why they cannot be given the opportunity to study. Education is a basic human right. We need to provide our youth with the necessary basic tertiary education.” Higher education provides a holistic learning experience and fosters personal growth and critical thinking. It promotes civic engagement, social responsibility, and the development of well-rounded citizens. By scrapping free college education, we risk limiting these benefits and creating a society that is less educated, less informed, and less equipped to tackle complex societal challenges. Time and again, it pays to revisit Article 26 of the Universal Declaration of Human Rights. Access to education should not be seen as a privilege but as a fundamental right. In other words, recognizing education as a human right implies that every individual is entitled to receive an education, without any form of discrimination, as it is legally protected. The post Grumbling mounts appeared first on Daily Tribune......»»
BSP target: 70% of adult Filipinos to have bank accounts
The country's central bank may achieve its aim of having 70 percent of adult Filipinos with bank accounts later this year as more Filipinos are now part of the official financial system, the new Bangko Sentral ng Pilipinas (BSP) chief recently said. "In our financial inclusion survey in 2021, 56 percent of [adults] in the country had a bank account, a significant increase from just 23 percent in 2017," he said during the BSP 30th Anniversary Reception for the Banking Community. "We're confident we will reach our target of 70 percent by this year," he added. Remolona attributed digitalization to financial equality in the country, allowing people to save money, invest in their futures, and participate in the digital economy more effectively. He added that more Filipinos made more digital payments and formally opened bank accounts. "We're making some progress. At last count, 42 percent of retail payments were in digital form. This is up from just one percent 10 years ago. That proportion should hit our target of 50 percent this year," Remolona said. So far, 258 digital payment companies have been given licenses by the BSP. Remolona expects competition and network effects to result in a system where the "most innovative, efficient, and responsible providers truly respond to customers' needs." Meanwhile, on the sidelines of the banking event, BSP deputy governor Bernadette Romulo-Puyat said that the central bank's recently deployed coin deposit machines (CODM) in various retail locations across Greater Manila Area have already recorded P12 million worth of deposits within just one month of operation. "It's been only one month since we deployed all the machines, but we started with just ten machines. Yet, we have already received 12 million worth of deposits," Puyat told reporters. The machines located in Robinsons Manila, SM Hypermart, SM, and Filinvest Alabang have been experiencing heavy foot traffic, with the Robinsons Manila machine being the most popular. The influx of people depositing coins has been attributed to the artificial coin shortage in circulation, as people tend to keep their coins at home or find it troublesome to deposit them at the banks. The coin deposit machines accept all coins except unfit ones and reject deposits with scotch tape or other items mixed with the coins. Puyat also shared that the highest deposit received was worth P50,000 in coins, which the depositor immediately converted to e-wallet credits. "In fact, 98 percent of depositors use e-wallets for their transactions," Puyat said. The BSP plans to expand the initiative to more locations in Metro Manila. When asked about future plans, she mentioned, "We're planning to relaunch it with Gov. Eli (Remolona) and maybe in Pasig, as Mayor Vico texted me. He also wants it in Pasig." The post BSP target: 70% of adult Filipinos to have bank accounts appeared first on Daily Tribune......»»
GCash sees Paleng-QR as deterent vs.cybercrime
An executive of Globe Telecom’s GCash said e-wallet providers should help further expand the use of QR codes at public markets to teach most Filipinos about cybersecurity in various digital financial services, including digital banking. “You cannot educate someone if he or she is not using the digital platform payment, so we make people part of the digital economy, even in marginalized areas,” said Migs Geronilla, GCash chief information and security officer, during the cybersecurity forum organized by Digital Pilipinas, Bank of the Philippine Islands, and Global Fintech Institute last Friday, 28 July 2023. The Bangko Sentral ng Pilipinas’ Paleng-QR uses QR codes that consumers can scan through their mobile phones and draw funds from their e-wallets to pay for goods at public markets. Cash-lite payments Conceptualized in 2021, this program was launched by the BSP along with the Department of the Interior and Local Government to promote cash-lite payments as the world made a shift to the digital economy. Regarding Paleng-QR, Geronilla said, “We’re very aggressive on it, making this digital payment a part of the daily lives of users. That’s the point of doing financial education and cybersecurity because when we see that it’s good for them, we can pinpoint where they can actually absorb the information.” With the proliferation of e-wallets and digital banks, Lawrence Ferrer, president and CEO of Bayad, a payments collector, said cybercrimes among Filipinos remain rampant and their trust in companies shaky. Organized and well-funded “Cyberfraudsters are organized and well-funded,” he said, recounting a time when “I got an SMS informing me that my bank account was unlocked. I’ve been getting this since last year, so you can imagine the amount of effort they put in. I don’t think this comes only from the Philippines but also outside.” Research group Tangere found in a recent survey it conducted that 80 percent of Filipinos receive scam attempts through text messages and 15 percent of them are alerted with such messages at 2 in the morning. Majority or 90 percent of the 1,000 respondents in the survey said they mostly fear phishing, a method where fraudsters obtain personal information of victims, such as their credit card numbers, by sending them emails or text messages. The post GCash sees Paleng-QR as deterent vs.cybercrime appeared first on Daily Tribune......»»
Digibanks to open financial access to unserved
The Bangko Sentral ng Pilipinas is studying whether to open license applications to more digital banks in the country soon. In a Philippine economic briefing in Canada last Thursday, BSP Governor Eli Remolona said officials are still monitoring developments in digital banking and electronic payments in the Philippines and building the proper infrastructure, systems, and human resources before authorizing more industry players. “We’ve limited licenses to six digital banks for now, and we must catch up with technology. So we’re expanding our capacity to work with digital banks, and pretty soon, I think we’ll be ready to work with more digital banks,” Remolona said. BSP has been collaborating with financial technology firms through its regulatory sandbox, where financial technology firms present their innovative products and services and have them tested under the watch of a BSP regulator. “What we do is put them in the sandbox and bring in the regulator to work with them so the regulator understands the implications of the innovations. Usually, you have the innovation and regulations at the end of the year. It’s a matter of efficiency and competitiveness for the banking system,” Remolona explained further. Department of Budget and Management Secretary Amenah Pangandaman, who previously served as assistant BSP governor, said further studies on digital banking and electronic money issuers or EMIs are needed to ensure BSP regulations truly promote the adoption of these innovative services nationally. “We have a study that there was a time when there were a lot of EMIs in the country. As of now, it’s on hold before a study. Hopefully, BSP will develop recommendations on whether to open the digital banking space or limit the players moving forward.” McKinsey & Company reported that GoTyme, UnionDigital Bank, and UNO Bank had a total market value of $3 billion, more than the $ 2.2 billion of traditional banks between January 2021 and January 2023. However, the report stressed: While competition in digital financial services is intensifying, dominant players have yet to emerge outside the mobile payments subsector. Six digital banks have recently launched operations in the Philippines, but none lend at scale. Tonik Digital Bank Inc., Maya, and Overseas Filipino Bank Inc are the three other digital banks. In a summit on artificial intelligence in May, Henry Aguda, president of UnionDigital Bank, said digital banks must still acquire trust from most Filipinos, especially for loans, before new industry players can compete successfully and be profitable. “If I use a car analogy, the six digital banks generally use the same road and most car parts. But ours is a different engine, and that changes the game. I’m not saying there should be lighter regulations, but more progressive regulations with a digital banking slant.” The post Digibanks to open financial access to unserved appeared first on Daily Tribune......»»
AMRO predicts PHL GDP will grow 6.5% in 2024
The ASEAN+3 Macroeconomic Research Office (AMRO) on Tuesday maintained its growth and inflation forecasts for the Philippines in 2023 as the country's inflation sharply declined amid reliance on consumer spending to churn growth. In a press conference, AMRO maintained their forecast that the Philippine gross domestic product (GDP) will grow by 6.2 percent in 2023 and 6.5 percent in 2024. AMRO also expects consumer prices in the Philippines to have an average of 5.9 percent in 2023, before falling sharply to 3.8 percent in 2024. AMRO’s chief economist Dr. Hoe Ee Khor explained that the optimism about the Philippine economy stems from the structure of the economy. “Because of the structure of the economy, the other economies are dependent on manufacturing, whereas the Philippines is a service-driven economy,” the AMRO's chief economist said. He added that the Philippine economy is largely driven by consumer spending. For context, the economy grew as mobility restrictions were loosened, which allowed people to spend more money in the third quarter of 2022. Remittances from overseas Filipinos also contributed to consumer spending and household incomes. Data from Bangko Sentral ng Pilipinas showed that remittances accounted for 8.9 percent of the country's GDP in 2021. BSP has raised its benchmark interest rate by 425 basis points since May 2022 in an effort to curb inflation. However, the BSP has acknowledged that the high prices are largely due to supply chain disruptions, both domestically and internationally. Meanwhile, AMRO expects the ASEAN region to grow by 4.5 percent in 2023, slightly slower than their previous projection of 4.9 percent. However, AMRO is still bullish on the region's prospects, and they believe that the economy will turn a corner towards the end of the year. “Downside risks have receded slightly primarily on account of better-than-expected improvement in the global economy,” they added. The post AMRO predicts PHL GDP will grow 6.5% in 2024 appeared first on Daily Tribune......»»
BSP: Digital Payments in the Philippines Surge to 42.1%
The Bangko Sentral ng Pilipinas (BSP) revealed that digital or e-payments have accounted for 42.1 percent of payment transactions in the Philippines by the end of 2022, marking a significant growth from the 30.3 percent recorded in 2021, according to its 2022 Status of Digital Payments report. The development comes as the BSP’s Digital Payments […].....»»
Digital payments share rise 42%
The share of monthly digital payments to total monthly retail payments volume in the Philippines rose to 42.1 percent in 2022 from 30.3 percent in 2021, latest e-payments data of the Bangko Sentral ng Pilipinas recently showed. The primary contributors to the growth include merchant payments, person-to-person transfers, and salaries and wage payments. Merchant payments and P2P transfers experienced a digitalization boost of 35.6 percent and 91.2 percent respectively. Additionally, it is worth noting that salaries and wage payments saw a substantial increase of 41.1 percent, compared to only 32.0 million transactions in 2021. More accounts utilized These findings align with the most recent report from the BSP Financial Inclusion Survey, which revealed a significant rise in the ownership of transaction accounts, predominantly e-money accounts. Furthermore, it indicated that more of these accounts are now being utilized for making payments. “The latest results show that we are steering in the right direction as we move closer to our goal of converting at least half of total retail payments volume into digital form by the end of 2023 under the BSP DigitalPayments Transformation Roadmap,” outgoing BSP Governor Felipe Medalla said. “The numbers tell us that the deliberate reforms and initiatives we have been undertaking are responsive to the shifting needs of the public towards more efficient payments services. Since the pandemic, which broadened digital payments adoption and acceptance, the upward trajectory of digital payment usage has been sustained. We need to carry on to maintain this trend, focusing on the overall value-adding experience of using digitalpayments,” Medalla added. The post Digital payments share rise 42% appeared first on Daily Tribune......»»
BSP bans six money service firms for violations
The Bangko Sentral ng Pilipinas has banned six money service businesses from registering their companies further in the Philippines they were caught operating without a license. In a statement released on Monday, BSP’s policy-making body Monetary Board has disqualified the entities and any sole proprietorship owned and/or controlled by their respective owners/operators from registering with, and/or obtaining a license from the BSP to engage in any activity that is authorized or supervised by the BSP for operating as MSB without prior BSP registration. "The (disqualification) is pursuant to Section 901-N of the Manual of Regulations for Non-Bank Financial Institutions, and is part of BSP’s efforts to address the proliferation of entities engaged in the operation of unauthorized MSBs," the Central Bank explained. Of the six MSBs that BSP recently banned, three are located in Makati City, two in Pasay City and one in San Fernando, Pampanga. Last February, the BSP also disqualified one MSB in Dumaguete City, Negros Oriental, and another one in Panglao, Bohol. Last year, the BSP disqualified 10 MSBs from obtaining a license to operate because they failed to register with the BSP. MSBs are non-bank entities that provide remittance, money changing and foreign exchange dealing services. MSBs can also deal in virtual assets, which are digital representations of value that can be traded or used for payment. As of the end of 2022, the BSP has registered 7,584 MSBs, an 0.18 percent increase from 7,570 in 2021. The BSP said it is committed to ensuring that MSBs are properly regulated and supervised to protect the public. The post BSP bans six money service firms for violations appeared first on Daily Tribune......»»
Digital payments breach 40% in 2022
The share of digital payments to total retail transactions breached 40 percent last year from 30.3 percent in 2021 amid the efforts of monetary authorities to push digitalization, according to the Bangko Sentral ng Pilipinas......»»
BSP junking LIBOR as rates benchmark
The Bangko Sentral ng Pilipinas and market stakeholders have agreed on a new overnight rate that will replace the London Interbank Offered Rate or LIBOR this month, central bank governor Felipe Medalla said on Wednesday. Medalla said the new overnight or ON rate will be generated by translating the 28-day BSP bill rate to its ON equivalent. This new ON reference will be effective on or before 30 June 2023. Medalla added that the market’s agreement on the new ON rate is a “major milestone” in the transition away from LIBOR. “The new ON rate will provide a reliable and transparent benchmark for pricing short-term financial instruments,” Medalla said. “This will help to ensure the smooth functioning of the financial markets,” he added. Credible curve In addition to the new ON rate, the BSP and market stakeholders also discussed the need for a credible yield curve. A yield curve is a graph that shows the relationship between interest rates and maturities. It is used by investors to assess the risk of different investments. Medalla said that a credible yield curve is essential for the efficient functioning of the financial markets. “Since macro-financial decisions are based on these benchmark risk prices, having a credible yield curve is in everyone’s best interest,” Medalla said. He also pointed out the necessity of having a yield curve based on “active trading of marketable securities.” “This will ensure that the yields are accurate and reflective of the true risk of the underlying assets,” he added. The central bank chief said the BSP and market stakeholders agreed that the start of January 2024 would be the “fighting target” for having a credible yield curve in place. Another central bank official said that Philippine banks still have transactions worth billions of pesos tied to LIBOR. “Global markets need alternative means to price. This is the tentative solution,” Bangko Sentral ng Pilipinas assistant governor Johnny Noe Ravalo said in the same briefing The LIBOR rate, which had a global linkage of $265 trillion at the start of 2021, has served as a benchmark rate for a wide range of financial instruments, such as credit cards, corporate loans, mortgages, and derivatives. The post BSP junking LIBOR as rates benchmark appeared first on Daily Tribune......»»
BSP to replace LIBOR with new ON rate
The Bangko Sentral ng Pilipinas and market stakeholders have agreed on a new overnight rate that will replace the London Interbank Offered Rate (LIBOR) this month, central bank governor Felipe Medalla said on Wednesday. In a media briefing, Medalla said the new ON rate will be generated by translating the 28-day BSP bill rate to its ON equivalent. This new ON reference will be effective on or before 30 June 2023. Medalla added that the market's agreement on the new ON rate is a "major milestone" in the transition away from LIBOR. "The new ON rate will provide a reliable and transparent benchmark for pricing short-term financial instruments," Medalla said. "This will help to ensure the smooth functioning of the financial markets," he added. In addition to the new ON rate, the BSP and market stakeholders also discussed the need for a credible yield curve. A yield curve is a graph that shows the relationship between interest rates and maturities. It is used by investors to assess the risk of different investments. Medalla said that a credible yield curve is essential for the efficient functioning of the financial markets. "Since macro-financial decisions are based on these benchmark risk prices, having a credible yield curve is in everyone's best interest," Medalla said. He also pointed out the necessity of having a yield curve based on "active trading of marketable securities." "This will ensure that the yields are accurate and reflective of the true risk of the underlying assets," he added. The central bank chief said the BSP and market stakeholders agreed that the start of January 2024 would be the "fighting target" for having a credible yield curve in place. Another central bank official said that Philippine banks still have transactions worth billions of pesos tied to LIBOR. “Global markets need alternative means to price. This is the tentative solution,” BSP assistant governor Johnny Noe Ravalo said in the same media briefing The LIBOR rate, which had a global linkage of $265 trillion at the start of 2021, has served as a benchmark rate for a wide range of financial instruments, such as credit cards, corporate loans, mortgages, and derivatives. The post BSP to replace LIBOR with new ON rate appeared first on Daily Tribune......»»