UP UNTIL May 1994, no foreign bank was permitted to enter the country apart from four foreign lenders that were already operating at that time. In February 1995, the Bangko Sentral ng Pilipinas (BSP), under Republic Act (RA) No. 7721, approved the application of 10 out of 22 foreign banks that had expressed interest. Under RA 7721, only when one of the 10 banks pulls out could another offshore lender enter the Philippine financial system.

THE FURTHER EASING in domestic inflation buoyed investor sentiment for much of the first quarter this year even as upside risks — mostly from the external front — remain.

ANALYSTS are painting a rosy picture for banking stocks following the sector’s mixed performance in the first quarter and the central bank’s decision to slash reserve requirements, but advise investors to remain selective on which ones to include in their respective portfolios.

ARTIFICIAL intelligence (AI), robotics, cloud computing, machine learning, and the Internet of Things (IoT) are among the things that make up Industry 4.0 — more commonly known as the Fourth Industrial Revolution (FIRe). As these technology breakthroughs are becoming more evident in business and day-to-day living, how prepared is the country’s financial system in harnessing its potential benefits and at the same time, mitigating its potential costs?

THE PHILIPPINES is among the most vulnerable to the impact of natural disasters and climate change. Last year saw 24 tropical depressions, 20 tropical storms, 16 typhoons, one super typhoon, and at least 13 earthquake episodes.

YEARS of robust economic growth have given rise to a middle-class with increased disposable incomes. Some of these incomes are splurged on consumption and luxury items, while some are put off in savings accounts for good use. But with measly interest rates, who would want to let their cash sit idly by? What better use is saved cash for?

LAST MONTH saw the Malaysian-lender CIMB Bank formally launching its operations in the Philippines, more than a year after it received the central bank approval to establish banking operations in the country.

ECONOMISTS expect local financial markets to rebound this year following a challenging 2018 even as uncertainties both at home and abroad remain.

WITH THE DOWNTREND in inflation allowing room for the central bank to retain or cut key interest rates, analysts remain bullish on bank stocks this year as they expect banks’ to net higher earnings and at the same time, lower funding costs.

Weather conditions may be unfavorable, crops may fail.

WITH the agriculture sector being perceived as high-risk, finding a source of funding is a tall order for farmers, more so when they have little or no assets to pledge as collateral. This leads them to borrow money from informal lenders at predatory rates, which makes them susceptible to a cycle of poverty that would last generations.

RURAL BANKS began to sprout in the 1950s when the countryside lacked basic financial services, which prompted the government to set up measures to incentivize the establishment of such lenders by way of lower interest and other perks. Prior to this, the main sources of credit were moneylenders in the informal sector that charged very high interest rates. Convenient and secured payment facilities in many rural communities hardly existed.