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BSP mulls grant of FCDU licenses to rural banks |
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By Ted P. Torres
The Philippine Star 10/14/2005 The Bangko Sentral ng Pilipinas (BSP) is open to granting foreign currency deposit unit (FCDU) licenses to rural banks but under a strict regulatory environment. BSP Deputy Governor Nestor A. Espenilla Jr. said they are open to allowing rural banks to transact foreign currencies "as long as it does not require legislation." Espenilla said they have already the Rural Bankers Association of the Philippines (RBAP) to submit their proposals for review by the monetary authorities. "As long as we can work out systems and regulations to ensure that the bank and the bank clients have sufficient protection and safeguards are in place, I do not see why not," Espenilla added. The BSP wants to put stiff regulations and working systems to ensure the proper utilization of the FCDU license. "We want to be sure that it is not abused. We also want to be sure that the rural banks know how to maintain and utilize or manage foreign currencies deposited by their clients," the BSP official added. If there is no need for legislation, Espenilla said the BSP is prepared to issued a circular after sufficient consultations and discussions. The rural banks want to get an FCDU license to maximize opportunities brought about by the increasing volumes of remittances from overseas Filipino workers (OFWs). There are over 764 rural banks operating roughly 1,800 offices nationwide. Remittances, which reached nearly $9 billion last year, were coursed mainly through commercial banks or money transfer companies in areas where the rural banks operate. Rural banks have already started tapping the remittance market but only the peso or converted currency rather than the foreign currencies from its origin, such as United States dollar or EU euro. "The rural banks want to license so that they can invest the foreign currencies in investment instruments which give good returns and that makes sense," Espenilla added. |
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Circular Letters/Memoranda |
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Speeches/ Presentations |
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Photo Gallery |
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The 2008 RBAP Charter Symposium |
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2008 CFI Awards |
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Rural Banking Week Celebration Golf Tournament |
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Client Satisfaction Survey for Licensing Management System of the Supervision and Examination Sector |
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Financial Reporting Package 2008 |
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BSP releases regulations on liquidity, market risk weighting |
