The Bangko Sentral ng Pilipinas (BSP) has published proposed rules to guide banks in allocating at least four percent of their loanable funds to the development of innovation for the benefit of micro, small and medium-sized enterprises (MSMEs) and startups. The BSP in the draft circular stated that the loanable …
Read More »MSME loan slips fall to 463.13 billion pesos in 2021
MANILA, Philippines — Lending by banks in the Philippines to micro, small, and medium-sized enterprises (MSMEs) fell 3.6 percent to 463.13 billion pesos in 2021 from 480.5 billion pesos in 2020, as the sector has yet to fully recover from the impact of the pandemic, according to the Bangko Sentral …
Read More »Sanctions put Russia in an economic stranglehold and the West has even more options, experts say
Breadcrumb Links News “It’s a bit like a massive aerial bombardment (in financial terms)” Deputy Prime Minister Chrystia Freeland speaks during a press conference following a meeting on the situation in Ukraine on Parliament Hill in Ottawa, February 28, 2022. Photo by David Kawai/Bloomberg Content of the article The Russian …
Read More »Agri-Agra Act Changes to Free Up More Funds
Lawrence Agcaoili – The Filipino Star February 13, 2022 | 00:00 MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) says farmers, fishers and micro, small and medium enterprises (MSMEs) in the agriculture, agribusiness and related sectors should be given a bullet in arm once amendments to the prescribed thresholds …
Read More »Banks decide to raise interest rate on deposits by one percent due to tight liquidity – myRepublica
KATHMANDU, February 12: Banks are raising the interest rate on deposits citing the tight liquidity position in the country’s banking system. The Nepal Bankers Association (NBA) at a meeting on Friday decided to raise the interest rate on deposits by one percent. In the revised rate, the apex organization maintained …
Read More »Decision to raise internal loans could worsen liquidity crunch
As the government struggles to spend its existing resources, it has started to raise internal loans, fueling fears that this will lead to a further shortage of financial resources at banks which are already under pressure to lend due to the lack of of cash. On Friday, the Nepal Rastra …
Read More »BSP makes last push for reform measures
With only a few months left in the 18th Congress, the Bangko Sentral ng Pilipinas (BSP) on Friday reiterated its push for pending bills conducive to economic recovery amid the protracted pandemic. Specifically, the BSP was pushing for the adoption of the following measures: the Law on the Protection of …
Read More »“Magna Carta” for MSMEs producing a “parvi eventus”
Read this in the digital edition of the Manila Times. As reported by the Bangko Sentral ng Pilipinas (BSP) this weekend, Philippine banks again failed to meet their obligation to provide loans to micro, small and medium enterprises (MSMEs) at the end of the third quarter of this year. In …
Read More »The central bank authorizes banks to use funds from local units for loans to the productive sector
Amid a severe shortage of loanable funds in the banking sector, Nepal Rastra Bank on Monday opened the door for commercial banks to count up to 80 percent of local government reserve funds deposited in commercial banks as a deposit. The central bank has also paved the way for banks …
Read More »Economic recovery: some glimmers of hope but still a long way to go – myRepublica
The year 2021 was decidedly not as gloomy as the year before in terms of freeing the economy from the clutches of the COVID-19 pandemic. Economic activities accelerated as the spread of the coronavirus gradually slowed. The signs are positive but the economy could sink into a crisis if corrective …
Read More »Fund for agri-agra loans on the rise
FUNDS for lending to the agriculture and agrarian reform sectors increased by 21.36% at the end of September, but did not reach the level required by law, data from the Bangko Sentral ng Pilipinas (BSP). The banking system had reserved 804.17 billion pesos for the sector as of September 30, …
Read More »The tightening of liquidity is expected to continue for a few months
With the shortage of loanable funds forcing most banks and financial institutions to suspend their loans, the crisis is expected to continue as the government plans to withdraw more money from the banking sector for income tax purposes by the end of the year. mid-January next year, officials and experts …
Read More »Central bank says more deposits, less loans, sign of improving liquidity
Nepal Rastra Bank officials said the gap between deposits and credit, which has led to the current shortage of loanable funds in banks and financial institutions, has turned towards a correction. According to them, this is reflected in the reverse trend of deposit collection and credit expansion in the third …
Read More »Economy faces headwinds but finance minister oblivious to crisis
Last week, Finance Secretary Madhu Kumar Marasini sent out a tweet containing warning signals. “Boosted consumer demand, chaos in supply chain management, hoarding, hyper credit, rising inflation: boost!!!”, Marasini wrote on the social media platform, attracting quite a bit of attention. The Finance Secretary’s tweet comes at a time when …
Read More »Government allows banks to use up to 80% of funds provided to local governments in their CD ratio – myRepublica
The limit has been extended by an additional 30% to help ease the liquidity crisis seen in the banking system KATMANDU, December 21: The government has revised the deposit limit, on the amount of the subsidy granted to local communities, which the banks concerned have used to maintain their credit-to-deposit …
Read More »Amidst liquidity shortage, government delays increase in domestic lending
It is almost mid-December, but the government has yet to start raising internal loans, citing the lack of liquidity in the banking system. Banks and financial institutions in Nepal say they are running out of loanable funds. The open market operations committee, chaired by the vice-governor of the central bank, …
Read More »PHL must stimulate agricultural financing
More than a decade after the promulgation of Republic Law 10,000 or the Agri-Agra Reform Credit Law of 2009, banks are still reluctant to extend credit to the agriculture and food sectors. land reform. The law requires all government and private banking institutions to allocate at least 25 percent of …
Read More »Lenders’ agri-agra compliance remains low
BANKS ‘COMPLIANCE with mandatory credit quotas for the agriculture and land reform sector has shown “no improvement” as loans for these sectors remain limited, a member of the Monetary Council said. V. Bruce J. Tolentino, a member of the Monetary Council of Bangko Sentral ng Pilipinas (BSP), said the central …
Read More »Reviews | It’s high time for postal banking
USPS has a public service mandate to provide a similar level of service to communities across the country, regardless of local economic conditions. In addition to daily mail delivery to remote locations, the Postal Service maintains post offices even in low-income urban neighborhoods and small towns that lack other basic …
Read More »A look back at Bangladesh’s financial sector
This is part of a two part series Bangladesh’s economy is recovering from the Covid-19 pandemic. The challenges in ensuring a successful and smooth exit from these terrible 18 months are formidable. In particular, the financial sector has been under severe stress. Virtually all businesses have experienced a sudden sharp …
Read More »Nepal spent more on servicing domestic debt than larger foreign loans
Although Nepal’s stock of domestic debt is lower than external loans, the government spent more money to repay domestic debt than external debt in the last fiscal year 2020-21. This raised the question of whether the government should prioritize external borrowing over domestic debt. According to the Public Debt Annual …
Read More »Can central bank digital currency lead to cryptocurrency collapse
The idea of central bank digital currencies is not new, as central bankers around the world are discussing this topic, and even the International Monetary Fund, as Managing Director Christine Lagarde, discusses the downsides and pros of the idea. The need to have this conversation has now become commonplace. In …
Read More »Liquidity crisis and low capital spending
For about a month now, two reports on the Nepalese economy, the liquidity crisis (limited availability of loanable funds in the banking sector) and low government capital spending have dominated the media. The latest data released by Nepal Rastra Bank, the central monetary authority, also indicates a serious shortage of …
Read More »Government delays increase in domestic lending due to liquidity shortage in banking system
Last year, the government started raising internal borrowing in early October. But this year, as the month draws to a close, the government has yet to decide when domestic debt will be increased. The government of Sher Bahadur Deuba has reduced internal loans to be raised in the current fiscal …
Read More »Soaring interest rates could hamper post-pandemic recovery
Guru Neupane, a developer of the Upper Chameliya hydroelectric project, is concerned about the potential rise in bank interest rates. Faced with a liquidity shortage, commercial banks are competing to entice depositors, offering high interest rates on deposits. It could also lead to an increase in interest rates on loans. …
Read More »Controlling Capital During COVID-19 | East Asia Forum
Author: Bryan Mercurio, CUHK, Ross Buckley, UNSW and Erin Fu, HUST While capital controls were the accepted economic orthodoxy of the 1950s and 1960s, it became distinctly heterodox and drew the wrath of the International Monetary Fund in the early 1990s. After the rather successful use of capital controls by …
Read More »Commercial banks face shortage of funds, likely to raise interest rates further after Dashain – myRepublica
KATMANDU, October 11: Banks are likely to raise interest rates on loans after mid-October, citing the lack of loanable funds available at home, caused by the excessive increase in imports and slow remittances. According to bankers, the country’s banking system faced a shortage of money supply to provide loans. “The …
Read More »Agri-agra loans climb at the end of June
BANK loans to the agriculture and land reform sector increased 13.60% at the end of June this year, according to the Bangko Sentral ng Pilipinas (BSP), but have not reached the mandated amount. As of the end of June 2021, the banking system had set aside 789.60 billion pesos for …
Read More »NRB injects an additional 20 billion rupees into the country’s financial market to ease liquidity crunch – myRepublica
KATMANDU, September 17: The Nepal Rastra Bank (NRB) on Thursday injected an additional 20 billion rupees into the national financial system in an attempt to alleviate the growing lack of liquidity in the banking system. According to NRB, he issued a pension worth the donated amount through the bidding process …
Read More »Banks sanctioned by P859M from 2018 to 2020
Benjamin E. Diokno, Governor of Bangko Sentral ng Philippines – BLOOMBERG THE CENTRAL BANK slapped Fines worth 859 million pesos on Fifinancial institutions from 2018 to 2020, with non-compliance with mandatory credit quotas among the main violations, said the governor of Bangko Sentral ng Pilipinas (BSP), Benjamin E. Diokno on …
Read More »Tanzania: Bot’s 1tri / – Will it Boost the Private Sector, Solve the High Interest Dilemma?
TODAY’s analysis examines the so-called high interest charged by banks in Tanzania amid initiatives by the BoT to pump 1 tril / – to increase private sector investment in what the BoT governor , Professor Florens Luoga, described it as an effort to mitigate the macroeconomic impacts of the covid-19 …
Read More »Agri-agra loans post double-digit growth in the first quarter
Lawrence Agcaoili (The Philippine Star) – June 30, 2021 – 12:00 am MANILA, Philippines – Loans from national banks for agriculture and land reform saw double-digit growth of 10% to 765.92 billion pesos in the first quarter, from 696.35 billion pesos in the same quarter of last year, according to …
Read More »Agri-Agra Law is 46 years old; he remains toothless and useless
NO verbal scams by regular benefactors, business groups, civic organizations and chambers of commerce have had the longevity of “Investing in Agriculture”. From my adulthood in the still agrarian years of the 20th century to today’s private groups of tech moguls exploring space travel (think Space X and Blue Origin), …
Read More »Agri-agra penalties attain P13B in 8 years
Sanctions imposed on banks that failed to satisfy the necessary credit score allocation for agriculture and land reform totaled greater than 13 billion pesos over an eight-year interval, in accordance with a central financial institution official. “We collected round 13.4 billion pesos in agro-agricultural penalties from 2011 to 2018,” Lyn …
Read More »Your central financial institution – Manila Commonplace
“The governor’s reply to this conundrum: simply preserve being optimistic.” The COVID-19 pandemic is above all a well being disaster. That is what Governor Benjamin Diokno of Bangko Sentral ng Pilipinas (BSP) says. But the top of the central financial institution alone has poured more cash into the financial system …
Read More »RBI boldly crosses paths with ‘Lakshman Rekha’ as he embarks on quantitative easing, writes Ajit Ranade
The Reserve Financial institution of India’s Financial Coverage Committee (MPC) meets each two months to resolve on the principle coverage rate of interest. That is the speed at which the RBI grants an in a single day mortgage, that’s, an in a single day mortgage, to a business financial institution …
Read More »Solon pushes Senate on Agri-Agra invoice
A invoice that enables banks to increase support to the agricultural sector and make them adjust to the Agri-Agra legislation continues to be pending within the Senate greater than a yr after the Home of Representatives handed the measure, has declared the primary creator of the invoice. Camarines Sur consultant …
Read More »BSP defines different modes of compliance for agricultural-agrarian loans
Lawrence Agcaoili (The Philippine Star) – March 8, 2021 – 12:00 am MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has relaxed compliance guidelines for agriculture and land reform loans as Philippine banks proceed to fall beneath the prescribed threshold. BSP Governor Benjamin Diokno issued Round 1111 after the …
Read More »Agri-Agra loans plunge at finish of 2020 – The Manila Occasions
Financial institution loans to the agriculture and land reform sector fell 2.76 p.c on the finish of final yr, additionally beneath the prescribed threshold, in line with information from Bangko Sentral ng Pilipinas ( BSP). The banking system put aside 713.599 billion pesos for the sector on the finish of …
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