Borrowers of closed banks get payment discounts
The Philippine Deposit Insurance Corp. (PDIC) will provide borrowers of shuttered banks discounts and waivers to settle their outstanding loans until the end of the year......»»
Banks’ bad loans ratio highest in 8 months
The share of bad loans to the banking sector’s total loan book went up to an eight-month high in January, snapping two straight months of decline, as borrowers felt the pinch of elevated interest rates......»»
PDIC extends loan incentive program for closed bank borrowers
PDIC extends loan incentive program for closed bank borrowers.....»»
Closed banks’ agriculture lots to be sold for P189 million
State-run Philippine Deposit Insurance Corp.is set to auction P189 million worth of agricultural lots owned by padlocked banks through a public electronic bidding on Nov. 8......»»
Oil prices jump as Hamas attack on Israel fuels supply fears
Oil prices rallied while the dollar and yen advanced Monday after Hamas launched a shock attack on Israel at the weekend, sparking fresh concerns about tensions in the Middle East. The crisis fanned concerns about supplies of crude from the region at a time when supply worries are already high owing to Saudi Arabia and Russia's output cuts. It has also renewed fears about the impact on inflation, with energy costs a key driver of spiking prices, giving a fresh headache to central banks as they try to ease up on interest rate hikes to avoid recessions. The surprise attack and Israel's declaration of war in response to it have left more than 1,000 dead and raised concerns that a potential broadening of the conflict could draw in the United States and Iran. "Key for markets is whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia," said ANZ Group's Brian Martin and Daniel Hynes. "Initially at least, it seems markets will assume the situation will remain limited in scope, duration, and oil-price consequences. But higher volatility can be expected." Both main contracts surged more than five percent in early Asian business before easing back as the day wore on. However, SPI Asset Management's Stephen Innes warned: "Historical analysis suggests that oil prices tend to experience sustained gains after the Middle East crises. "Meanwhile, stocks tend to eventually recover and trend higher after an initial period of volatility. Safe-haven assets like gold and Treasurys, which initially see gains during such crises, tend to fade from their initial price spikes as the situation stabilizes. "But with Middle East analysts considering this to be a pivotal moment for Israel, the view looks incendiary in any current scenario." A decidedly risk-off mood also saw investors push into the safety of the dollar, which was up against the pound and euro, as well as the Australian and New Zealand dollars. The yen, considered one of the safest currencies, strengthened against the greenback, though it still remains locked around 11-month lows. Gold, another key haven, gained more than one percent. Equity markets were mixed, with Shanghai dropping on its first day back after a week-long holiday as investors continue to fret over the stuttering Chinese economy. There were also losses in Mumbai, Singapore, Manila, Bangkok and Wellington, though Hong Kong rose as it opened in the afternoon, having been closed in the morning owing to a typhoon. Sydney and Jakarta eked out gains. Tokyo was closed for a holiday. London edged up at the open while Paris and Frankfurt were lower. The tepid performance came despite a rally on Wall Street, where traders welcomed data showing a forecast-busting jump in new jobs but wage growth slowing. The "Goldilocks" figures -- neither too strong nor too weak -- lifted optimism the world's top economy can avoid a recession even as the Federal Reserve keeps rates elevated. Still, there are worries the bank will hike one more time before the end of the year, with officials determined to bring inflation to heel and keep it at their two percent target. Key figures around 0715 GMT West Texas Intermediate: UP 3.5 percent at $85.69 per barrel Brent North Sea crude: UP 3.1 percent at $87.23 per barrel Hong Kong - Hang Seng Index: UP 0.4 percent at 17,552.01 Shanghai - Composite: DOWN 0.4 percent at 3,096.92 (close) London - FTSE 100: UP 0.3 percent at 7,518.16 Tokyo - Nikkei 225: Closed for a holiday Euro/dollar: DOWN at $1.0540 from $1.0588 on Friday Pound/dollar: DOWN at $1.2195 from $1.2234 Dollar/yen: DOWN at 149.15 yen from 149.30 yen Euro/pound: DOWN at 86.49 pence from 86.52 pence New York - Dow: UP 0.9 percent at 33,407.58 (close) (Bloomberg News contributed to this story) The post Oil prices jump as Hamas attack on Israel fuels supply fears appeared first on Daily Tribune......»»
PDIC to auction P270 million assets of closed banks
State-run Philippine Deposit Insurance Corp. aims to raise at least P270.6 million from the sale of residential and commercial lots owned by closed banks next month......»»
SBCorp.: Financing gap yawns P400B
Department of Trade and Industry attached agency Small Business Corporation is seeing the financial gap, or the inability of private banks, lending firms, and the government’s lending arms to provide loans is now ranging from P300 billion to P400 billion. “Even if we put together government banking institutions providing loans to entrepreneurs, as well as savings and loans associations and cooperatives, the country’s financial gap still lacks from P300 to P400 billion. That’s our estimate based on our study,” Robert Bastillo, SBCorp president, exclusively told the DAILY TRIBUNE during his interview in the paper’s online show, Straight Talk. Bastillo said this is the main reason why small entrepreneurs have become baits to traditional loan sharks, colloquially known as the “5-6” scheme associated with Indian nationals, instead of formal sources of loans. They would rather close shop “This was also the reason why some businessmen opted to stop their enterprises due to this financial gap problem in the country. They would rather close shop. In fact, the International Finance Corporation estimated that the financial gap in the country is from P12 to P13 trillion, but we contradicted that because the economy of the country is not that huge,” he said. Bastillo said the whole portfolio of the banking sector in the country is approximately P8 trillion. With the huge financial gap, Bastillo said SBCorp’s P10 billion budget allocation is indeed not enough to fill in the gap. He said that’s why they have formulated programs to influence the financing sector so that MSMEs will look fundable to financial institutions, just like SBCorp’s P3 or the Pondo sa Pagbabago at Pag-asenso program. The P3 Program is a financing initiative by government to assist micro-entrepreneurs throughout the country by providing affordable and cost-efficient microloans, “But if the P3 will be coursed through cooperatives, then we give only a 2 percent interest rate per year. Cooperatives can stretch the interest rate by as much as 30 percent per year. But cooperatives nowadays provide only a 2 percent interest rate,” according to Bastillo. Bastillo said that if the P3 is directly availed from SBCorp., they will provide the loan at one percent per month or 12 percent per year, but with a diminishing effect, compared to other private banking institutions. Good players MSMEs that are good payers can be rewarded by a lower interest rate of up to 10 percent per annum if they will avail of another loan, Bastillo said. The scheme is a funding program that will provide an alternative source of financing for microentrepreneurs that is easy and quick to access, and is seen to give a boost to the micro enterprises sector, which comprises the bulk of Philippine micro, small, and medium enterprises. The program also aims to stabilize informal lending, locally known as 5-6 lending, and prevent micro-entrepreneurs from falling victim to usurious lenders. Added funding Meanwhile, Bastillo insisted that if funding for the SB Corp. is added by the government, more microloans will be ushered into MSMEs. “If the capital of P10 Billion, provided by the Magna Carta for MSMEs, will be raised around P50 to P100 billion, then we will be able to help more borrowers. However, it would take time to realize this, as amendments are needed to the Magna Carta for this request. Right now, it is still at the Committee level at the House of Representatives,” according to Bastillo. The post SBCorp.: Financing gap yawns P400B appeared first on Daily Tribune......»»
MSMEs good payers — SB Corp.
The micro, small and medium entrepreneurs are being extolled by Small Business Corporation, an attached agency of the Department of Trade and Industry, for being good payers even though some of them have already closed shop because of the global contagion three years ago. During his guest appearance at the Daily Tribune’s digital show Straight Talk on Wednesday, SB Corp. president Robert Bastillo said almost one-third of the lenders catered to by SB Corp. have closed their businesses during the height of the Covid-19 pandemic. “The good thing is that these MSME lenders are still paying their debts even if their businesses were shuttered. These are indeed entrepreneurs as they want to have a good reputation and a good track record when it comes to debt. That is important for us. But still, the majority of the lenders are good payers even though some are delayed,” he said. The past-due rate of SB Corp. during the pandemic was 30 percent, considering that most funds in its portfolio were released during the pandemic. Past due rate manageable The past-due rate refers to the lenders who are delayed in their payments. Currently, the past-due rate of SB Corp. is from 20 to 25 percent, considered by Bastillo as healthy, considering that the country is just coping with the pandemic crisis. From 2019 to date, Bastillo said SB Corp.’s total direct MSME lenders are now at 55,000, while those courses through cooperatives, micro-finance institutions, and private financing companies — or what they call loan conduits — are now reaching 300,000. “SB Corp. lenders can borrow from P30,000 up to P20 million maximum. Lenders up to P5 million do not need collateral, but first-time borrowers can only borrow up to P3 million. If they are good payers, they can expand their loan after six months,” he said. No stringent requirements required In terms of process, SB Corp. does not require stringent requirements for MSMEs if they are only lending up to P100,000. “We only require other requirements, such as a Mayor’s Permit, among others if they are already asking more than P100,000. We have credit scoring in place based on the lender’s assets or annual sales. That’s a discipline in lending and a risk management procedure,” he said. SB Corp.’s fund being ushered to MSME lenders is coming from its corporate equity, being a corporation. Inadequate revolving fund “We have a capital of P10 billion, but what has been given to us for the past 28 years, was P2 billion. It’s a revolving fund that is not enough. The P10 billion was given in full in the last pandemic, but those are meant for dying MSMEs. It’s hard during that time,” according to Bastillo. He said even the salaries of their employees are coming from the revolving funds, as they are given by the government annual appropriations because they are a corporation that is supposed to earn money. “We live within what we earn. It is difficult in the sense that it is also challenging. How do you help and keep yourself afloat when everybody around you is struggling? That is our problem during the pandemic. But we are happy to say that despite that, we have a modest income, and we were able to serve MSMEs very fast,” he said. According to Bastillo, MSMEs with P100,000 to P3 million worth of assets are considered micro, MSMEs that have an asset of P3 million to P15 million are considered medium, while those with 100 million assets are considered large entrepreneurs. The country’s MSMEs dominate the entrepreneurial environment, accounting for more than 99.5 percent, 80 percent of which are micro. The SB Corp. is a government financial institution created in January 1991 under Republic Act 6977 or the Magna Carta for Small Enterprises, amended by RA 8289 in 1997 and RA 9501 in 2008. It has the primary responsibility of implementing comprehensive policies and programs to assist MSMEs in all areas, including but not limited to finance and information services, training and marketing. The post MSMEs good payers — SB Corp. appeared first on Daily Tribune......»»
Government raises P172 million from sale of closed banks’ assets
The Philippine Deposit Insurance Corp. earned some P172 million from disposing assets of padlocked banks in the first semester of the year......»»
Auction set for assets of closed banks
The Philippine Deposit Insurance Corp. will put up for sale P151 million worth of commercial and residential lots owned by padlocked banks......»»
Fuse Lending mulls tie-up with small lenders
Fuse Lending Inc., a subsidiary of Globe Telecom Inc., is exploring partnerships with community-based stores and small lenders like cooperatives to provide business loans to more micro, small and medium enterprises or MSMEs. “We have no partnerships with cooperatives but there are discussions with some. Nothing is final yet. But we’re always open to partnerships,” Baby Aquino, Fuse vice president for strategy and chief of product, told the Daily Tribune last Wednesday at an event by GCash and Fuse entitled “Borrow for Tomorrow” in Bonifacio Global City, Taguig. Fuse and Globe’s GCash provide a range of loan products using the mobile app. Fuse said 35 percent of its P100-billion loan disbursements as of July went to MSMEs. In terms of client locations, 70 percent are based in Metro Manila. Best way to reach the market “There are many who have expressed interest in partnering with us. We have a dedicated department for big partnerships but it also focuses on tapping retail shops and sari-sari stores. This is the best way to reach the market,” Aquino said Aquino said the firm is maximizing artificial intelligence or AI to determine possible business loan borrowers based on their behaviors when using GCash’s various transactions. “We’re using AI because customers don’t declare all the time that they are doing retail business on the side. For these customers, we give different communications or messages,” she said. Based on clients’ feedback, Aquino said many MSME owners need bigger amounts but for short-term use. “We continue to explore other products which can offer bigger loan amounts. Retail shops really appreciate that we can enable them to have stocks for their products but with GGives because they often are not able to sell all their inventory in one day or short period of time,” Aquino explained. GLoan offers credit up to P125,000 on a one-at-a-time disbursement with repayment period of up to 24 months. GGives, on the other hand, offer multiple loans at the same time with a total amount of up to P125,000 which is paid in installments. Campaign in public markets As the Christmas season starts in the Philippines as early as this month, she said Fuse and GCash will be putting up campaigns, including financial literacy activities, in various public areas including public markets to reach MSMEs that will be setting up their stalls to sell products for Christmas gifts. “We’ll not stop and focus on MSMEs because there are still many of them to serve. They can use bigger credit amounts to buy additional stocks of their products and so increase their sales, as well,” Aquino said. GCash’s marketplace links clients with financing firms and banks that can provide bigger amounts for long-term goals, such as purchase of equipment or real estate. The post Fuse Lending mulls tie-up with small lenders appeared first on Daily Tribune......»»
Even Indian lenders drawn to SBCorp’s P3
A high-ranking official of a Department of Trade and Industry-attached agency has revealed that even traditional Indian lenders based in the Philippines want to avail of the Pondo sa Pagbabago at Pag-Asenso, or P3, Program of the government. Small Business Corporation or SBCorp president and CEO Robert Bastillo made the revelation when he guested on the second Daily Tribune’s Asian Innovation Forum on Tuesday. He said half of the funds allocated to P3 are meant for cooperatives, micro-finance institutions, and private financing companies that have members that can easily access micro-entrepreneurs, particularly those who own sari-sari or small stores. “P3 was conceptualized to combat loan sharks or informal money lenders. When we visited a cooperative in a municipality in Bicol recently, we discovered that Indian lenders were now lowering their interest rate to 5 percent per month,” Bastillo said. “Surprisingly, some Indian lenders even wanted to avail themselves of our P3 program. If that is the case, it means the program has an impact,” he added. He explained that SBCorp is ready to provide funding to micro and small entrepreneurs to eventually expand operations in the long run or when banking institutions are not yet ready to provide MSE loans to them due to a lack of a banking track record. “That is why we are asking Congress to add more funds to SBCorp. The current fund is not enough to help MSMEs in their entrepreneurial journey,” he said. SBCorp estimated that there is a P300 to P400 billion financing gap in the country, which means that banking institutions, even cooperatives, and microfinancing institutions are not able to respond to the needs of MSE lenders. “We are asking for P50 billion for our total capital, including our current fund. While for the P3, we are aiming to make it a full-fledged law for it to have automatic appropriations. We aim that 10 to 15 percent of the current financing gap will be given to us, enough to serve MSEs and cooperatives, among others,” he said. In March 2023, the House of Representatives approved on third and final reading of House Bill 7363, or the proposed P3 Act, with an overwhelming 278 votes. The “P3 Act aims to provide an affordable, accessible, and simple financing program for MSEs, especially those in the poorest populations and underserved areas. HB 7363 mandates the creation of the P3 Fund, which shall be lent out to qualified MSEs under such terms and conditions that will meet the purposes of the Act. The P3 Fund shall be accessible through the SBCorp. and accredited partner financial institutions such as rural banks, thrift banks, development banks, cooperative banks, cooperatives, non-stock savings and loan associations, microfinance non-government organizations and lending companies. Currently, the P3 Program, with an annual allocation of P1.5 billion from the national government, is intended to provide micro-entrepreneurs with an alternative source of financing that is easy to access at a reasonable interest rate, that is in a safe environment away from dubious practices of informal lenders, and that is sustainable as delinquent borrowers are effectively barred from borrowing in the next loan cycle. Under the P3 Program, a microenterprise can borrow between P5,000 and P200,000, depending on its business status and repayment capacity, with no collateral requirement. Interest rates and service fees, all in, do not exceed 2.5 percent monthly. The post Even Indian lenders drawn to SBCorp’s P3 appeared first on Daily Tribune......»»
Credit card literacy revs up as use rises
The Credit Information Corporation continues its campaign for wise and safe use of credit cards as more Filipinos shift to cashless payments. CIC, along with the Credit Card Association of the Philippines, or CCAP, will hold the “Swipesmart” free webinar on 31 August on their Facebook page from 9 a.m. to 11 a.m. CIC on its website announced the webinar will discuss the responsible use of credit cards to build a good credit rating for easier access to loans and cybersecurity for prevention of financial theft. CCAP executive director Alex Ilagan said cases of credit card fraud have risen by 21 percent in 2021 amid the pandemic as interactions were conducted through remote technology. During this period, Visa Philippines said more Filipinos or 52 percent preferred online credit card payments while 44 percent chose card payments at physical stores. Rise in cards use inevitable CCAP expects more Filipinos to use credit cards as the Philippine Statistics Authority projected more income earners in the country with a 1.52 percent population growth each year and more businesses both online and physical open post-pandemic. Currently, 64 percent of the population own credit cards, CCAP reported. “As the economy continues to reopen and becomes more robust, pent-up demand for consumer goods and services will persist, feeding into the growth of the e-commerce, retail and services, travel and tourism, automotive, and housing sectors, among others,” Ilagan said. “A credit card is one way to extend your purchasing power,” he continued. Credit cards are used for small to medium purchases. For long-term and bigger purchases, banks strictly evaluate borrowers’ credit card histories submitted by the CIC as required by law. CIC shared it has obtained credit data of 41.8 million individuals as of 30 June 2023. Visit www.creditinfo.gov.ph for the registration link to the webinar. The post Credit card literacy revs up as use rises appeared first on Daily Tribune......»»
Retention of cap on credit card rate gets banks’ backing
The decision of the Bangko Sentral ng Pilipinas to maintain the rate cap on credit card transactions will benefit both the borrowers and the industry amid the aggressive rate hikes delivered by the central bank, according to banks and credit card issuers......»»
Research group: Interest cut not likely until Q2 2024 due to inflation risk
A subsidiary of Fitch Solutions said on Friday that cutting the interest rates in the Philippines is too early due to the potential inflationary effects of El Niño in the country. BMI, a division of Fitch Solutions, said in an emailed commentary that the Bangko Sentral ng Pilipinas might not lower its interest rates until next year after it kept its benchmark rate at 6.25 percent during its most recent policy-setting meeting. "With the clear risk to the inflation outlook and the external sector under pressure, policymakers will likely keep financial conditions very restrictive for a while longer," BMI said. "This feeds into our expectations for rate cuts to materialize only in the second quarter of 2024," it added. Although BMI anticipates that inflation will ease to less than 4 percent by the fourth quarter of this year, the start of El Niño "may threaten food prices" in the country. It also mentioned how the weather could raise concerns about the disinflationary process in the Philippines. "In addition to inflation, maintaining currency stability will be a key consideration in the central bank's near-term policy decisions," BMI said. The Fitch Solutions unit added that maintaining currency stability, apart from inflation, will be a key consideration in the central bank's near-term policy decisions. BMI noted that the Philippine peso has depreciated by about 1.9 percent against the US Dollar in the year-to-date and is currently trending towards its one-year low of P59.47 per dollar. "Policymakers will be cautious about exacerbating further weakness in the peso, especially given that the US Federal Reserve has not completely closed the door on further tightening – a key risk that we have been highlighting," BMI said. "These factors will prompt the BSP to keep interest rates at multi-year highs. But this will come at the expense of growth," it added. Meanwhile, BMI reduced its 2023 its growth forecast from 5.9 percent to 5.3 percent in light of "a poor economic performance" in the second quarter. For context, the Philippine economy decelerated by 4.3 percent year-on-year in the second quarter amid slow government spending. Latest data from Philippine Statistics Authority showed that the gross domestic product growth in April to June period was lower than the 7.5 percent recorded in the period last year and the 6.4 percent in the first quarter this year. The country's GDP also shrank by 0.9 percent during the second quarter after expanding by 1.1 percent during the first quarter. "Rate cuts would only be considered when food prices have stabilized, and major central banks have begun their easing cycle, which we expect in the second quarter of 2024," BMI said. The post Research group: Interest cut not likely until Q2 2024 due to inflation risk appeared first on Daily Tribune......»»
UBS to pay $1.4-B to settle US fraud charges on subprime loans
UBS will pay $1.4 billion to settle US charges that it defrauded investors in the sale of mortgage-backed securities central to the 2008 financial crisis, the Justice Department announced Monday. The agreement resolves the last outstanding case brought by federal prosecutors against major banks in the wake of the financial calamity, an initiative which has garnered $36 billion in settlements from nearly 20 financial institutions, a Department of Justice (DOJ) press release said. In its civil case launched in 2018, the DOJ argued that UBS "knowingly made false and misleading statements" in connection with the sale of 40 residential mortgage-backed securities (RMBS) issued in 2006 and 2007. The DOJ had alleged that contrary to UBS representations, the giant Swiss bank "knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers' ability to repay." Ultimately the 40 RMBS "sustained substantial losses," the DOJ said. "With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities," said Breon Peace, US Attorney for the Eastern District of New York. "The substantial civil penalty, in this case, serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes," he added. UBS characterized the case as a "legacy matter," adding in a statement that the funds have been provisioned for in earlier periods. The post UBS to pay $1.4-B to settle US fraud charges on subprime loans appeared first on Daily Tribune......»»
At least 11 killed, 13 missing in Beijing rainstorms
At least 11 people were killed and 13 were missing after heavy rains lashed Beijing, state media said Tuesday, in downpours that have submerged roads and deluged neighborhoods with mud. Storm Doksuri, a former super typhoon, swept northwards over China after hitting southern Fujian province on Friday, following its battering of the Philippines. Heavy rains began pummeling the capital and surrounding areas on Saturday, with nearly the average rainfall for the entire month of July dumped on Beijing in just 40 hours. Swaths of suburban Beijing remain badly hit by the rains -- some of the city's heaviest in years. On the banks of the Beijing river, one of the worst affected areas, AFP reporters saw muddy debris strewn across the road. One man told AFP he had not seen flooding this bad since July 2012, when 79 people were killed and tens of thousands evacuated. "This time it's much bigger than that," he said, declining to give his name. "It's a natural disaster, there's nothing you can do," a 20-year-old man surnamed Qi waiting for a taxi with his grandmother outside a hospital told AFP. "(We) still have to work hard and rebuild." On Tuesday, state broadcaster CCTV reported that the rains had killed at least 11 people, two of whom were workers "killed on duty during rescue and relief". Thirteen people were missing, but another 14 had been found safe, the broadcaster said. President Xi Jinping on Tuesday called for "every effort" to rescue those "lost or trapped" by the rains. More than 100,000 people deemed at risk across the city have been evacuated, according to state-owned Global Times newspaper. Authorities have allocated 110 million yuan ($15.4 million) for disaster relief work in Beijing and surrounding provinces, CCTV said. 'Endure what we can' On Tuesday, around a dozen emergency vehicles, including trucks with water tanks and bulldozers, were spotted on the road between Shijingshan and Mentougou districts. Parts of the road were still closed off and workers in bright orange raincoats were using shovels to clear it. Florist Wang Yongkun, 62, had piled sandbags around the door of his shop, but the floor inside was still coated in mud. He said in 15 years working there he had never experienced anything like the last few days. "We started cleaning up in the afternoon yesterday... and woke up again at seven today to continue," he said. "You just have to deal with it... We will endure what we can." Around 150,000 households in Mentougou were without running water, the local Communist Party newspaper Beijing Daily said, with 45 water tankers dispatched to offer emergency supplies. Cars swept away Further south in Fangshan district, the Dashi River had overflowed, with trees along the riverbank partially submerged, and some sections of the road cordoned off. Roads were caked in mud, foliage and various debris, including an upturned armchair. AFP reporters saw collapsed bridges at two locations, with locals saying the damage had happened during the rains. Earlier social media videos tagged in Fangshan had shown multiple cars being swept along roads turned into fast-flowing streams. Live images from broadcaster CCTV on Tuesday morning showed a row of buses half submerged in floodwater. In the parking lot of a high-rise apartment complex, cars were piled on top of each other, alarms still sounding, while people lined up with buckets and other containers to collect fresh water. Chaotic scenes Local media on Monday published footage of chaotic scenes aboard high-speed rail trains stranded on tracks for as long as 30 hours, with passengers complaining that they had run out of food and water. Authorities "must properly relocate affected people, work quickly to repair damaged transportation, communication, and electricity infrastructure, and restore the order of normal production and life as soon as possible", Xi said on Tuesday. The capital activated a flood control reservoir on Monday for the first time since it was built in 1998, the Beijing Daily said. Parts of neighboring Hebei province remain under red alert for rainstorms, with authorities warning of potential flash floods and landslides. In Handan, Hebei province, rescuers lifted by crane reached a man trapped on his car in floodwaters, lifting him to safety before the car was flipped and washed away by the current. China has been experiencing extreme weather and posting record temperatures this summer, events that scientists say are being exacerbated by climate change. The country is already preparing for the arrival of another typhoon -- Khanun, the sixth such storm of the year -- as it nears China's east coast. The post At least 11 killed, 13 missing in Beijing rainstorms appeared first on Daily Tribune......»»
Quick AI response as small biz magnet
Digital banking powered by artificial intelligence or AI is increasingly becoming the norm. How fast and flexible industry players can maximize benefits from this technology to provide credit to most small businesses is the edge, Edwin Bautista, president and CEO of Union Bank of the Philippines, told the Daily Tribune. [caption id="attachment_164549" align="aligncenter" width="585"] Edwin R. Bautista, president and CEO, UnionBank of the Philippines[/caption] “All we know is AI will disrupt industries, so the earlier you try to figure out how to adopt it, the better. Now, the question is, how many financial institutions are prepared to make that bet of lending using alternative data sources using AI?” Bautista said. UBP’s digital banking arm UnionDigital Bank is shifting gears to provide small businesses with accessible loans using AI. It collects data from the Internet and humans and organizes them into qualitative and quantitative categories to generate text, images, audio and videos. Many small business owners usually need financial statements on paper, as they sell products and services primarily online through social media, such as Facebook, Instagram and TikTok. However, Bautista said their financial capabilities could be traced and analyzed even without the formal documents required by traditional banks, such as income tax returns, financial statements, and trading partners profiles. He stressed AI does not discriminate. “When you look at the smaller businesses, they appear as an underground economy, so they cannot produce those kinds of documents. AI will help us because what it does is it puts together different information about that particular business or person and flow of sales so it can give a prediction on whether the small business owner will pay you back or not.” This technology is critical to lenders, including informal lenders, as micro, small and medium enterprises comprise 99 percent of all businesses in the country and drive most of its economic activities. Global market researcher McKinsey & Company said Philippine-based lenders can boost their growth by tapping the country’s bankable population, which is expected to expand by 30 percent to 85 million by 2030, along with owners of small and medium enterprises. “The Philippines has an estimated 15 million informal entrepreneurs and self-employed workers. Meanwhile, retail lending is heavily concentrated in a narrow band of wealthy households,” the researcher said. McKinsey reported a few domestic digital banks had gained traction, with three digital banks, including UnionDigital, growing a total market value by $3 billion. In contrast, traditional banks only saw a $2.2 billion growth between January 2021 and January 2023. However, McKinsey stressed digital banks in the Philippines have been limiting their services to mobile payments. “While competition in digital financial services intensifies, 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.” Unlike informal lenders, Bautista said digital banks can reach more borrowers as AI learns about all people with access to the Internet and produces sound data correlations. “The theory is that if you have many friends and are grounded in a particular community, chances are you will not just run away from your debt. The minute borrowers go outside their community. It’s challenging for informal lenders because they already do not know the people they are lending to.” With the developments in AI, Bautista said UBP is redesigning its brick-and-mortar banks by tapping digital technologies and its UnionDigital to exchange market insights, systems, and people skills to boost mutual growth. “We think we can be the number one Consumer Bank in the Philippines in the next three years. Why? Because Our growth path is based on broadening the base on which we can learn to adapt. You can only do that if you’ve transformed your front, middle, and back office accordingly.” Bautista said this means the ever-changing skills development of people of both banks. While AI has been demonized by some of the labor force and business owners worldwide, saying it will replace traditional jobs and employees, Bautista said the future remains uncertain. Still, it can also highlight innately human jobs. “AI may rather have pluses and minuses. You will be affected negatively, but you will also have a positive impact if new jobs are generated.” Bautista said proof of this is the human eye, intuition, and brain need to verify whether AI-generated data matches customers’ changing preferences and needs. “So today, I can know instantly what my customer sentiments are. If my back-end operations take me six months, what good is knowing today if I can act on it? And the only way I can act is I have people with the ability to modify their things and a back end that allows me to change my products and features near real-time.” The post Quick AI response as small biz magnet appeared first on Daily Tribune......»»
PDIC to auction P115 million assets of closed banks
The Philippine Deposit Insurance Corp. will put up for sale P115 million worth of agricultural and residential lots owned by padlocked banks......»»
Closed banks’ assets up for sale
The Philippine Deposit Insurance Corp. will put up for sale P137.5 million worth of commercial and residential lots owned by padlocked banks......»»
Shares down but peso rebounds
The Philippine Stock Exchange index fell on Tuesday, going the same path as the United States equities, but the peso gained against the US dollar. After the day’s trading, the local bourse’s main index slipped by 0.31 percent, or 20.24 points, to 6,502.85 points. All Shares followed with a drop of 0.19 percent, or 6.65 points, to 3,463.81 points. Most of the sectoral indices also closed in the negative territory, led by Mining and Oil, which declined 0.92 percent; Holding Firms, 0.79 percent; Property, 0.45 percent; and Financials, 0.30 percent. On the other hand, Services gained by 1.14 percent and Industrial by 0.22 percent. Volume reached 562.94 million shares amounting to P4.16 billion. Decliners dominate Decliners surpassed advancers at 84 to 82 while 55 shares were unchanged. “Local shares were sold this time, as the shortened week continued with Tuesday ending in the red, this time with sentiment being dragged by the US tech sell-off,” Luis Limlingan, Regina Capital Development Corp. head of sales, said. He said investors are also waiting for the release of the latest US data on home sales, durable goods, and consumer confidence. “Additionally, they will also watch for developments out of Russia following the brief rebellion seen over the weekend,” he said, referring to the attempted rebellion by the private army of mercenaries known as the Wagner group, which has been fighting along with the Russian army in Ukraine. Oil prices also fell “tracking a broader calm in financial markets as investors watched warily to see if there’ll be further fallout from an attempted insurrection in Russia that could disrupt energy supplies from one of the world’s largest oil producer nations.” Meanwhile, the peso improved against the US dollar after it ended the day at 55.32 from 55.7 the previous day. It started the day at 55.67, better than its 55.77 start in the previous session, trading between 55.7 and 55.3 and resulting in an average of 55.51. Volume reached $1.03 billion, up from Monday’s $646.4 million. Rizal Commercial Banking Corp. chief economist Michael Ricafort traced the peso’s performance to the general weakening of the US dollar, the launch of the Philippine peso-US dollar cross-currency swaps that would allow banks and their clients to hedge foreign exchange and interest rate risks, as well as the report about the lower government budget gap in May 2023. He forecast the peso to trade between 55.25 and 55.45 against the US dollar on Wednesday. The post Shares down but peso rebounds appeared first on Daily Tribune......»»