 |
 |
|
|
       |
BSP asks banks to cut service fees on remittances |
|
(08 February 2005, Tuesday - Malaya)
By MAX ESTAYO THE Bangko Sentral ng Pilipinas has asked local banks to lower service fees on remittances of overseas Filipino workers from the current $20 to $25 per transaction. BSP assistant governor Diwa Guinigundo said lower fees will encourage remitters to use the banking system than the cheaper but riskier informal channels. At present, the banking system captures only 69 percent of total OFW remittances, with the balance serviced by informal channels like door to door delivery. Based on National Statistics Office data, only 75 percent or $7.6 billion of the total OFW remittances in 2003 passed through banks. The BSP wants to increase the banking system's coverage of remittance money to at least 92 percent and move the funds away from unsafe channels. Guinigundo said the BSP has proposed that banks charge remittances by volume. For instance, banks could impute a one-time fee of $25 on the total remittances received on a day, instead of the $20 to $25 fee charged on each remittance. "Banks can just ask the remitters to share the $25 fee. In the end, the OFWs end up paying less but using the banks more for these transactions," he said. Guinigundo said that based on initial discussions, the banks appeared receptive to the proposal. "Barring any opposition from the banks, the BSP stands ready to come out with a new regulation to effect this change the soonest," he said. Guinigundo said the government is also creating an inter-agency task force to be headed by the Department of Labor and Employment with the BSP and the National Economic Development Authority as members. The move is aimed at strengthening the capacity of the banking system to capture the remittance not only of overseas Filipino workers, but also of exporters, most of whom have also resorted to informal channels for funds transmission. This, in turn, will help the government properly monitor inflows to the country relative to the country's goal of strengthening its balance of payment position. OFW remittances are now equivalent to about 10.5 percent of gross domestic product. In 2003, remittances were equivalent to more than 20 percent of the value of the country's exports of goods and services. Since the 1990s, inflows from Filipinos working overseas have exceeded the amount of gross inflows of foreign direct investment. During the past two years, annual flows of OFW remittances to the country approximated 45 percent of the country's gross international reserves. Remittances through November last year stood at $7.6 billion, higher than the 6 percent growth target for the whole year. The BSP is eyeing a 10-percent growth in remittances this year, on account of more highly skilled Filipino workers being sent abroad and improved capture of remittances by banks that allows shorter time for opening of accounts and delivering the remittance to the Philippines. Read more Malaya News>> |
 |
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 |
