Philippines rural banks seek longer time to comply with new BSP rules

Rural banks are seeking a longer time to comply with the new rules set by the Bangko Sentral ng Pilipinas raising the minimum capital requirements. BSP Governor Felipe M. Medalla said the central bank is giving rural banks enough time to comply, however, the Rural Bankers Association of the Philippines (RBAP) president, Atty. Mary Ann Tupasi-Saddul, said that the five-year period is not enough to comply with the new rules considering that many lenders are still recovering from the pandemic. The RBAP is also exploring possible partnerships with government agencies that implement social amelioration programmes. The BSP is also giving rural banks other options like merging and infusing capital. The BSP raised the minimum capital requirements for rural banks to at least PHP50m from PHP10m previously, as part of the Rural Bank Strengthening Program (RBSP).