THE BANGKO Sentral ng Pilipinas (BSP) said on Friday that banks will no longer need to secure its approval to convert foreign currency loans to peso, and for the transfer of such loans from foreign currency books to regular accounts.
In a press release, Deputy Governor Diwa C. Guinigundo said that “rules governing the: conversion of foreign currency loans granted by banks to peso loans; and transfer of such loans, as well as Real and Other Properties Acquired from banks’ foreign currency deposit unit books to the Regular Banking Unit books, have been liberalized.”
“… [T]hese transactions no longer require prior BSP approval under certain conditions which seek to ensure that banks fully understand the nature and extent of the risks involved and that they have put in place appropriate business policies and risk management systems to manage these transactions.”
The press statement said the move was “in line with the BSP’s thrust to further liberalize FX rules while maintaining a safe and sound financial system, a stable FX market, and an appropriate monetary policy.”
The BSP has been easing restrictions on foreign exchange transactions to enhance ease of doing business and encourage the public to transact with banks rather than the informal market. — EJCT