Press Release
August 16, 2021

Poe to BSP: Ask banks to give consumers breathing room in ECQ

Sen. Grace Poe asked the Bangko Sentral ng Pilipinas (BSP) to exert its persuasive powers on banks to provide relief to consumers during the enhanced community quarantine (ECQ).

"The BSP has lowered interest rates and provided banks regulatory relief. In the same way, it can encourage banks to provide their clients relief during these difficult times. Banks are expected to share the same breathing room with consumers," Poe said.

It is well within the BSP's authority to ask banks to pass on such relief, the senator stressed.

The International Monetary Fund, in its assessment of the Philippine economy released last week, noted that the amount of bad loans has not risen as much as initially expected.

Poe, chairperson of the Senate committee on banks, financial institutions and currencies, acknowledged the BSP for having laid down the groundwork for banks to strengthen their capital years ago. Stress test results for this year showed that banks' solvency and liquidity are relatively resilient.

"Providing consumers payment flexibility during the ECQ may just be what they need to stave off financial ruin. We are a consumer-driven economy and helping them get back on their feet is crucial in sustaining economic recovery," Poe said.

According to the BSP's latest data, total loans of commercial and universal banks amounted to P9.8 trillion as of end-June 2021. Consumer loans, dubbed by BSP as loans for household consumption, amounted to only P817.4 billion, which is barely a 10th of total loans.

"Big companies can call their banks and ask for lower interest and an extension of the payment period," Poe said, "But for small borrowers, it is never that easy. Without any relief or loan restructuring, they can easily lose a home or livelihood. For TNVS drivers, they will be deprived of their vehicle and source of income. If we will only think long-term, we will extend a helping hand to consumers."

As sponsor, Poe earlier led the passage of the Financial Institutions Strategic Transfer (FIST) Act or Republic Act 11523 that allows banks to offload their nonperforming loans to FIST corporations to enable banks to bankroll activities that will fuel the country's economic recovery.

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[FILIPINO VERSION]

Poe: 'Wag gipitin ang mga konsyumer sa panahon ng ECQ

Hiniling ni Sen. Grace Poe sa Bangko Sentral ng Pilipinas (BSP) na hikayatin ang mga bangko na magbigay ng kaluwagan sa kanilang mga konsyumer habang ipinapatupad ang enhanced community quarantine (ECQ).

"Pinababa na ng BSP ang interest rates at nagbigay na sa mga bangko ng regulatory relief. Kaya rin nitong hikayatin ang mga bangko na magbigay ng kaluwagan sa kanilang mga kliyente sa panahon ng kagipitan," sabi ni Poe.

Sa pagsusuri ng International Monetary Fund sa ekonomiya ng Pilipinas na inilabas nitong nagdaang linggo, nakitang hindi masyadong tumaas ang 'bad loans' tulad nang inisyal na inaasahan.

Kinilala ni Poe, chairperson ng Senate committee on banks, financial institutions and currencies, ang BSP dahil sa paglatag nito ng batayan para mapalakas ng mga bangko ang kanilang kapital ilang taon na ang nakalipas.

"Ang pagbibigay ng payment flexibility sa mga konsyumer habang nasa ECQ ay mahalaga para makaiwas sila sa financial ruin. Tayo ay consumer-driven economy at mahalagang matulungan silang makabangon para maitaguyod ang pagbangon ng ekonomiya ng bansa," lahad ni Poe.

Sa pinakabagong datos ng BSP, ang kabuuang pautang ng commercial at universal banks ay nagkakahalaga ng P9.8 trilyon nitong katapusan ng Hunyo 2021. Ang consumer loans, na tinawag din ng BSP na pautang para sa household consumption ay nagkakahalaga lamang ng P817.4 bilyon, na ika-10 bahagi lamang ng kabuuang pautang.

"Maaaring tumawag ang mga malalaking kumpanya sa kanilang mga bangko para humiling na mapababa ang interes at palugit para sa payment period," ayon kay Poe. "Subalit para sa mga maliliit na nangungutang, hindi iyon ganoon kadali. Kung walang kaluwagan o loan restructuring, madaling mawawala ang kanilang bahay o kabuhayan. Para sa mga TNVS driver, pagkakaitan sila ng kanilang sasakyan at pagkukunan ng kita. Kung mag-isip lang din ng pangmatagalan, tutulungan natin ang mga konsyumer," dagdag pa ng senadora.

Bilang sponsor, pinangunahan ni Poe ang pagsasabatas ng Financial Institutions Strategic Transfer (FIST) Act o Republic Act 11523 na pinapayagan ang mga bangko na ilipat ang kanilang mga nonperforming loan sa mga FIST corporation para masuportahan ng mga bangko ang mga aktibidad na tutulong sa pagbangon ng ekonomiya ng bansa.

Reference: https://www.bsp.gov.ph/Statistics/Banking%20Statistics/Loan%20Accounts/14.aspx

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