Metro Manila (CNN Philippines, December 18) — The Philippines remains among the top ten countries worldwide leading efforts to make financial services available for all, according to a recent report.
The country ranked 8th along with Brazil out of 55 countries involved in the 2020 Global Microscope, three notches down from its ranking last year. Produced by The Economist research arm Intelligence Unit, this year’s report assessed the role financial inclusion has played in how nations have responded to the coronavirus pandemic.
The report listed the Philippines among the countries which saw the “greatest” improvements in Asia and Eastern Europe. It garnered an overall score of 71, placing second in the region next to India, which scored 73 and ranked 6th globally.
The document acknowledged the national government’s fiscal and monetary measures in response to the pandemic, citing regulatory relief measures of the Bangko Sentral ng Pilipinas in particular.
It mentioned the BSP’s declaration of multiple grace periods for loan payments in line with the Bayanihan to Heal as One and Bayanihan to Recover as One laws, assuring that loans do not acquire interest, penalties or other charges within the specified timeframes.
The central bank implemented a “temporary relaxation of compliance reporting requirements, determined on a case-by-case basis, and provided easier access to a rediscounting facility,” it explained.
“In the Philippines, e-money transfer services waived their user fees for the duration of the quarantine, and the central bank suspended licensing and registration fees for such services,” added the report, as the government encourages the use of digital transactions amid the pandemic to further avoid the spread of the virus.
Banks waived fees for interbank fund transfers for months early into the pandemic, though some of have already announced the resumption of fees beginning October.
The report also cited the BSP’s move to slash the minimum liquidity ratio for stand-alone thrift banks, rural banks and cooperative banks, along with the reserve requirement ratio for universal and commercial banks. The central bank likewise permitted loans to micro, small and medium enterprises be tagged under banks’ compliance with reserve requirements.
Also included in the study was the government’s distribution of emergency financial support worth ₱5,000 to ₱8,000 to 18 million low-income households during the onset of the pandemic.
“Changes since 2019 were driven by improvements to regulatory frameworks for emerging services including a new set of rules and regulations for crowdfunding platforms,” said the Global Microscope.
With this, the Philippines obtained a perfect score of 100 in the criteria referring to the regulation of financial products and outlets. It scored 71 in both government and policy support and stability and integrity regulation, 75 in consumer protection, and 69 in infrastructure.
Source : From the Web