 |
 |
|
|
       |
Comm’l, thrift banks violate agri loan rule |
|
By: Jun Vallecera
The Daily Tribune, Tuesday, February 01, 2005 The amount of money that can be borrowed from the banking system has grown in size from a year earlier by over nine percent to P1.066 trillion at end-June 2004. As an industry, compliance to the mandatory 25-percent lending to both agricultural as well as agrarian borrowers were above the 25 percent floor set by regulation as actual compliance stood at 26.5 percent. But that is not the whole story. The regular commercial banks and their thrift bank counterparts failed to comply with the minimum required as their actual compliance stood at only 18.8 percent and 22.7 percent, respectively. Under Presidential Decree 717, banks are required to set aside 15 percent of their loan portfolio to borrowers in the agricultural sector and another 10 percent to clients in the agrarian sector. According to the Bangko Sentral ng Pilipinas, banks with expanded licenses, or those known as universal banks, posted an over compliance as actual lending to mandated sectors stood at 27.2 percent of portfolio. Rural banks, on the other hand, walked the talk and actually handed loans to the mandated sectors equal to 46.6 percent of their portfolio, well above the 25 percent mandate. Rural banks channeled 17.2 percent of their money to agrarian borrowers instead of 10 percent as required and set aside another 29.4 percent of portfolio to agricultural borrowing entities rather than just 15 percent under the law. Banking system compliance to the 10-percent agrarian credit ratio requirement fell below the mandate at only 9.4 percent, lower than even the 9.7 percent level attained a quarter earlier. “Consistently, the banking system overcomplied with 15-percent agricultural credit requirement at 17.2 percent. The undercompliance of regular commercial banks at 11.4 percent and thrift banks at 8.4 percent was offset by the overcompliance of universal banks at 18.8 percent and rural banks at 29.4 percent,” BSP Governor Rafael Buenaventura said in a statement. Banks as a whole still prefer to lend directly to the mandated sectors, setting aside the bulk of P192.7 billion. |
 |
Circular Letters/Memoranda |
|
Speeches/ Presentations |
|
Photo Gallery |
|
The 2008 RBAP Charter Symposium |
|
2008 CFI Awards |
|
Rural Banking Week Celebration Golf Tournament |
|
Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
|
Financial Reporting Package 2008 |
|
BSP releases regulations on liquidity, market risk weighting |
