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Bill boosting BSP enforcement powers being prepared

A measure seeking to strengthen the central bank’s oversight functions is currently being drafted, a senior legislator said Friday, following the release of an international assessment report on the Philippine financial sector.

“I am working on a draft and will be collaborating with Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno on matters we can work on,” House Ways and Means Chairman Jose Maria Clemente S. Salceda told BusinessWorld Friday.

The International Monetary Fund (IMF), in its financial sector assessment program, recommended the amendment of the bank secrecy law to give the BSP “additional teeth” in regulating financial institutions.

The IMF said the central bank’s regulatory framework “is broadly effective for the size and complexity of the Philippine banking system, but legislative gaps continue to hinder effective supervision of banks.”

“More work is needed to strengthen BSP’s oversight on the assessment of ultimate beneficial ownership of banks operating in the Philippines,” the report said. “Limitations on BSP’s enforcement powers also impair its ability to fully protect the bank from the actions of parent companies and affiliates.”

“The weaknesses in the regulatory oversight functions of the Bangko Sentral ng Pilipinas can be addressed with some changes in its charter,” Mr. Salceda noted, saying that a measure expanding BSP’s risk oversight powers “may be a useful backstop to induce banks to grow loans to more sectors faster.”

Mr. Salceda said various issues raised by the IMF are related to the Manual of Regulations for Banks, which the central bank can resolve without new legislation. “The crux of my work will be on a legislative framework for crisis management, recovery and resolution.”

“My options are to file an omnibus bill on the recommendations, or to take them up separately. An omnibus is probably the most effective way to do this, but I will consult with Governor Diokno on what he thinks is best,” Mr. Salceda said. “My inclination is to use the report as an impetus to expand financial inclusion in a safe manner and to future-proof our banking sector and prepare it for a more digital economy.” — Kyle Aristophere T. Atienza

Peso ends stronger on vaccine development news, US inflation data

The peso closed stronger Friday on positive news regarding the development of another coronavirus vaccine, and as US inflation slowed in October.

US biotechnology company Moderna, Inc. reported that it will move forward with its vaccine trials with an expanded the number of cases under study, which will trigger a stage of development known as the “first interim analysis” before an independent panel.

Meanwhile, the US reported inflation of 1.2% in October, down from 1.4% in September.

Core inflation which excludes volatile items like food and energy, was unchanged.

The peso closed at P48.21 against the dollar, against P48.27 on Wednesday, according to the Bankers Association of the Philippines. The market was closed Thursday due to typhoon Ulysses.

The peso opened the Friday session at P48.46, its low for the day. Its peak during the session was P48.20.

Dollar volume was $669.1 million on Friday, up from $507.9 million previously.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text that the progress made by Moderna was a key catalyst.

Meanwhile, a trader said in an e-mail that the peso was also stronger after US inflation came in lower than expected.

On Monday, Mr. Ricafort expects the peso to trade between P48.15 and P48.30. The trader gave a range of P48.15 to P48.25. — Kathryn Kristina T. Jose

Typhoon Vamco kills at least 14 in Philippines

By Charmaine A. Tadalan, Reporter and Angelica Y. Yang

Typhoon Vamco killed at least 14 and hurt eight other people after submerging many parts of Luzon island, including the capital region, and left half-a-million people without electricity.

At least three people were still missing, according to the local disaster agency.

Six of those who died came from the Cagayan Valley region, five from the Bicol region and one from the Cordillera Administrative Region, Office of Civil Defense Administrator Ricardo B. Jalad told an online news briefing.

The storm, locally named Ulysses, made landfall in Quezon province on Wednesday and crossed Central Luzon, according to the local weather bureau.

It weakened into a severe tropical storm over the South China Sea, but strengthened into a typhoon just as it left the Philippine area of responsibility, it added.

Mr. Jalad said more than 100,000 families had fled, including 64,552 families or 231,312 people whom local governments had evacuated before the typhoon came. Most of the came from the Ilocos region, Cagayan Valley, Central Luzon, Calabarzon, Mimamropa, Bicol region and Eastern Visayas.

“With the rescue operations conducted, an additional 44,194 families or 170,000 individuals were evacuated,” Mr. Jalad said. These came from Metro Manila, Cagayan Valley, Central Luzon, Calabarzon, Mimaropa, Bicol and the Cordillera Administrative region.

The agency monitored 105 areas that experienced flooding, eight landslides and two sea incidents.
Almost 500,000 customers of Manila Electric Co. (Meralco) still did not have electricity on Friday morning, the company said in a statement.

The affected customers were located in parts of Metro Manila, Bulacan, Cavite, Rizal, Laguna and the Quezon Province.

While linemen have already been dispatched to affected areas,restoration work might take longer in areas with heavy flooding, Meralco spokesman Joe R. Zaldarriaga told an online news briefing.

Power restoration in areas where the distribution utility’s facilities sustained heavy damage might take awhile, he added.

Metro Manila, Batangas, Bulacan, Cavite and Laguna might have their electricity back by Nov. 15, Energy Secretary Alfonso G. Cusi told presidential spokesman Harry L. Roque at a separate news briefing.

The National Grid Corporation of the Philippines (NGCP) in an advisory said eight 69-kilovolt (kV) transmission lines in Luzon were still unavailable as of 11 a.m. on Friday.

COVID-19 infections near 404,000

The Department of Health (DoH) reported 1,902 coronavirus infections on Friday, bringing the total to 404,713.

The death toll rose by 31 to 7,752, while recoveries increased by 506 to 362,903, it said in a bulletin.

There were 34,058 active cases, 83.9% of which were mild, 9.4% did not show symptoms, 4.3% were critical, 2.3% were severe and 0.12% were moderate.

Cavite reported the highest number of new cases at 122, followed by Davao City at 113, Quezon City at 84, Bulacan at 81 and Manila at 78.

Nine duplicates were removed from the tally, while 13 cases previously tagged as recovered were reclassified as death, the agency said. Twenty-nine laboratories failed to submit their data on Nov. 12, it added.

The Department of Health (DoH) asked local governments to enforce minimum health standards at evacuation centers to prevent the spread of diseases.

Health Undersecretary Maria Rosario S. Vergerie told an online news briefing health or safety officers should be appointed so they could screen evacuees for symptoms and isolate suspected coronavirus cases.

Ms. Vergeire also reminded evacuees to observe minimum health standards by wearing masks, washing their hands frequently, and social distancing.

DoH also urged Filipinos who waded in floodwaters to get checked at health centers for tetanus and leptospirosis.
“Leptospirosis is deadly,” she said in Filipino. Prophylaxis should be taken within 24 to 48 hours after exposure to flood.

Leptospirosis is acquired when the leptospira bacteria enter the body through wounds after exposure to flood water, vegetation and moist soil that are contaminated with the urine of infected animals, particularly rats, DoH said on its website. — Vann Marlo M. Villegas

Senate bill seeks hazard pay for other workers

A bill that seeks to give workers in public hospitals hazard pay during the coronavirus pandemic has been filed at the Senate.

Senate Bill 1908 by Senator Ralph G. Recto will cover sanitation workers, housekeepers, food service workers, janitors, security guards and equipment and building maintenance staff, among others.

“They are low-paid workers but are still classified as employed, thus disqualifying them from receiving emergency government aid for the jobless,” Senator Ralph G. Recto said in the bill’s explanatory note.

“They are not allied medical and health workers and some are private employees under contract of service, they are not entitled to hazard pay as contemplated in the Bayanihan II law,” he added.

The law provided for a COVID-19 special risk allowance for all health workers in private and public hospitals, on top of a hazard pay.

The country was placed under a state of calamity for six months starting March 16, amid the pandemic. This was later extended for a year until Sept. 12, 2021.

Under Mr. Recto’s bill, the hazard pay may cost up to 25% of the daily salary, subject to available funds. It will be based on the number of days the support worker serves in the COVID-19 section of the hospital.

The fund will be taken from the 2020 savings in the national budget or any contingency funds for the first year of the measure’s implementation and later from the annual spending plan.

If enacted, the bill will be applied retroactively to cover services rendered since March 17, 2020. — Charmaine A. Tadalan

Gov’t suspension of VFA termination sound — lawmaker

The Philippine government’s decision to extend the suspension of a military pact with the US on the deployment of troops for war games was “sound and strategic” considering the outcome of the US elections, a congressman said on Friday.

Muntinlupa Rep. Rufino B. Biazon said the move would give time for the US administration “to settle in and possibly pursue talks with the Philippines on issues concerning the visiting forces agreement (VFA).”

“The impending change in administration in the US offers the Philippines an opportunity to engage the new administration and discuss concerns pertaining to the Philippine-US relationship and come to a refresh or reboot of security arrangements in the region,” he said in a statement.

The extension of the suspension of the VFA termination showed that the Philippines was not abandoning its long-standing strategic alliance with its former colonizer, Mr. Biazon said.

Foreign Affairs Secretary Teodoro Locsin, Jr. this week said the suspension had been extended “to find a more enhanced, mutually beneficial, mutually agreeable, and more effective and lasting arrangement.”

“President-elect Joe Biden mentioned his desire to reinforce and strengthen alliances with Australia, Japan, and the Republic of Korea to maintain a secure and prosperous Indo-Pacific region when he took part in separate congratulatory calls from the leaders of the three nations,” he said.

The Philippine government extended the suspension of the VFA abrogation for six more months.

President Rodrigo R. Duterte in February said he was ending the military pact after the US Embassy canceled the visa of Senator Ronaldo O. Dela Rosa, his former police chief who led his deadly war on drugs. — Kyle Aristophere T. Atienza

Meralco implements major relocation works for the NLEX-SLEX connector road

In support of the government’s on-going Build, Build, Build program, Meralco’s top executives, along with representatives from key stakeholders such as DPWH and NLEX Corporation, visited and inspected the major portion of the pole relocation activities for the NLEX-SLEX Connector Road construction site along various streets in Sta. Cruz Manila, on the evening of October 29. Despite working constraints caused by the pandemic and the effects brought about by typhoon Quinta, Meralco delivered on its commitment to this project, in partnership with NLEX Corp and DPWH.

Seen in photo are (from L-R): Meralco executives, Ferdinand Geluz, FVP, and Chief Commercial Officer and Ronnie Aperocho, SVP and Head of Networks; NLEX Corp. COO, Raul Ignacio; DPWH Secretary Mark Villar and Chairperson of the Build, Build, Build Committee, Anna Mae Lamentillo on-site during the relocation of the Meralco electric facilities which would ultimately pave the way for the speedy completion of the said vital infrastructure project which is an 8-kilometer all elevated 4-lane toll expressway connecting the NLEX to the Skyway Stage 3 and will benefit at least 35,000 motorists/vehicles per day, reducing travel time from SLEX to NLEX from 2 hours to just 20 minutes.

Several Meralco Networks crews, as shown in the right photo, are seen working double-time to clear the electric facilities affected by the construction of this infrastructure project. This consolidated one-time big-time interruption work involved322 personnel and 68 various line construction equipment and vehicles as they worked on the installation of 104 new poles, 32 spans of XPLE power cable, 78 spans of tree wire, and the retirement of 57 poles.

 

 

Suntrust wins Most Innovative Residential Developer Award

Real estate developer Suntrust Properties Inc. (SPI) once again proves its steadfast commitment to its communities with another international recognition from Global Economics Award for being the Most Innovative Residential Developer.

The award recognizes the property developer’s quality and distinction in the residential and commercial sectors along with its ability to compete globally. Suntrust takes pride in this momentous accomplishment as some of the criteria include past performance, achievements, innovation, growth, and sensitivity of the local environment.

“We are beyond honored to be chosen, once again, as this year’s Most Innovative Residential Developer. This award serves as a testament of how resilient we are, that amid the challenges brought by the pandemic, we still live up to our promise and commitment of providing quality and affordably priced homes to Filipino families,” said Atty. Harrison M. Paltongan, the company president.

Apart from the aforementioned criteria met by the company, SPI also proudly hosts a spectrum of project developments, from condominium to subdivisions and individual estate across the country.

 “This moment is also an inspiration for the company to continue building the Filipino dream, staying true to our goal of being a home for every Filipino,” he added.

Along with its subsidiaries, Stateland Inc. (SLI), Sunrays Property Management Inc. (SPMI), and Suntrust Ecotown Developers, Inc. (SEDI), the company continues to rise above today’s challenges by continuously building dreams for millions of Filipinos here and abroad.

To get the latest updates from Suntrust, please visit www.suntrust.com.ph.

A grand and safe staycation awaits at Grand Hyatt Manila

Get two complimentary Rapid Antigen Tests when you book a Grand Escape at Grand Hyatt Manila.

Delight in complimentary breakfast, 20% off dining, 50% off laundry services, and more with its Grand Escape promotion. Grand Hyatt Manila offers guests a worry-free stay by complying with strict international and local hygiene standards. By doing so, it is offering guests two complimentary Rapid Antigen Test when they choose to avail of our Grand Escape staycation package.

 

Book a room by Dec. 15, 2020, for stays through Oct. 1, 2020 to Aug. 31, 2021, for as low as P12,000 nett. Each reservation comes complete with the following:

  • Complimentary Rapid Antigen Test by Abbott for two guests (Additional tests are priced at P2,000)
  • Complimentary breakfast for all registered guests (Up to two adults and two children below 12 years old)
  • 20% discount when dining at The Grand Kitchen, The Lounge or The Peak
  • 50% discount on laundry services
  • Welcome amenity-filled with an array of beverages
  • Access to Illume Spa 24-hour fitness center and pool
  • Flexible check-in and check-out times
  • Complimentary parking
  • Complimentary local calls
  • Complimentary WiFi

For reservations and further inquiries, call +632 8838 1234 or email sea.reservations@hyatt.com.

The safety and well-being of Grand Hyatt Manila’s guests and colleagues is always a top priority. In response to COVID-19, it is taking multiple steps to care for your well being. Precautionary measures include enhanced cleaning and sanitization procedures in all guestrooms, dining outlets, and public spaces.

Grand Hyatt Manila is ISO 22000 certified and adheres to strict food safety management standards that ensure your food is sourced and prepared safely for consumption. Learn more about how we are focused on maintaining a safe environment for you and your loved ones.

TERMS AND CONDITIONS

Prior reservation is required. Call +632 8838 1234 or email sea.reservations@hyatt.com to avail of the offer. This offer cannot be used in conjunction with other promotional offers, privileges, or VIP cards. Discounts and privileges are not convertible to cash. Reservations may be canceled 24-hours prior to the check-in date to avoid a one-night fee. Bookings must be guaranteed by credit card. Blackout dates apply Dec. 30 and 31, 2020.

As of Oct. 6, 2020, the hotel has been granted with Certificate of Authority to Operate for Staycation by the Department of Tourism. In line with this, only guests residing within the National Capital Region and present a negative result from a Rapid Antigen Test conducted on the day of check-in are allowed to place a reservation for leisure. This promotion is inclusive of two complimentary Rapid Antigen Tests by Abbott, any succeeding test will be priced at P2,000. To avail of the complimentary tests, guests must call and confirm their schedule by 11 a.m., the day prior to their check-in date. Once the booking has been confirmed, the test will be scheduled and conducted at the hotel on the day of check-in.

All guests and customers are required to wear a face mask and face shield in all public areas of the hotel. A health declaration form must be accomplished prior to check-in and dining.

 

Cloud technology cuts order processing time from three days to one  

Native Union, a technology accessories company, cut its order processing time from three days to one by using cloud technology to accomplish important but repetitive tasks.

“Our staff were just spending their days entering orders into a spreadsheet. What kind of a career is that? Now, because we can see across an integrated ecosystem, they have the time to analyze what we do, think about how to improve the supply chain, and really add value to the business. Their roles have transformed overnight,” said Farouk Merzougui, chief operating and financial officer at Native Union, in a statement.

Using the AtomSphere Platform, a product by cloud-based integration platform-as-a-service (iPaaS) provider Boomi, Native Union was able to integrate its enterprise resource planning software, Shopify store, and multi-currency payment gateway processor.

Previously, employees would manually process, replicate, and compile orders from their Shopify store. They would then have to send the orders to the fulfillment warehouse themselves at the end of the day.

The AtomSphere Platform automates payments reconciliation and the receipt of orders. The status of an order is also automatically updated every five minutes, providing employees with real-time insights. 

The platform has also allowed Native Union to scale through remote operation of a new overseas fulfillment warehouse. Typically, opening a warehouse entails site visits, staff training, and onboarding. But with cloud technology, Native Union is able to run the warehouse from abroad through electronic forms and procedures.

“Take this disruption and this fear… as a catalyst… When you take this in a different angle, you can really transform your business, you can really expand your business, but you need to accept the change,” said Mr. Merzougui, addressing companies that still doubt the benefits of cloud technology. — Mariel Alison L. Aguinaldo

Viber sees 208% growth in Community messages as brands create group chats

Companies have been creating Viber Communities to communicate with their consumers over the pandemic. The messaging platform noted a 129% increase in community views and a 208% growth in messages sent to Communities in the first half of 2020 versus the same period last year. In the Philippines, Viber has a 71% penetration rate.

“People are now forced to shop from within their communities for the sake of convenience and safety,” said Veronica Feleo, Viber Rakuten’s business development manager, at a recent virtual roundtable. “On the brands’ end, there’s more of a willingness to connect with consumers.” 

Brand representatives in attendance agreed on the importance of tailored messaging. 

“There’s an intentional way of how we send messages,” said Brigette Villarin, director for operations at Megamobile, Inc., a member of the Inquirer Group of Companies. Inquirer Mobile shares information on current news, politics, and lifestyle topics to its 100,000+ strong community, and adapts its content curation based on trends.

“We noticed there was heavy engagement at mealtimes during the enhanced community quarantine (ECQ),” Ms. Villarin said. “After July, the engagement became more concentrated in the morning, so that’s when we published all relevant information. In the evening, we shared lifestyle stories to give everyone a breather from the news.” 

Christina Lao, digital acceleration director of McDonald’s Philippines, added that the food chain’s Viber Community was set up to help ensure its patrons were maximizing their time whenever they went out. “People were looking for information [at the start of the pandemic], and the first thing they looked at was their phone. We want to earn our space in your app and provide information that’s relevant.” 

For its part, the Department of Health decided to create its own community when it received a deluge of inquiries early March, or soon after the start of the first national lockdown. “It was clear to us with so many inquiries that people were panicking,” said Dr. Beverly Ho, the director of the Health Promotion Bureau at the Department of Health (DoH). “When we started, we weren’t that well-organized… We eventually rolled out surveys to ask members what information they wanted from this group.” 

DoH shares both COVID and non-COVID information to its Viber Community, but it also takes care not to flood its more than two million subscribers with messages.

Meanwhile, SM Pasabuy is a means of satisfying the mall chain’s customer needs. Pasabuy is a play on the Filipino pasabay, a term used when requesting someone to get something at a store they plan to shop in.

At the start of the pandemic, SM promoted takeout, delivery, and curbside purchases in adherence to safety protocols. It also started offering personal shoppers in 71 of its 74 malls for those who wanted to shop from the comfort of their homes. 

“We have many fulfillment partners who do deliveries,” said Joaquin San Agustin, senior vice president for marketing at SM Supermalls. “We tied up with 67 apps nationwide, as well as riders in communities and those out of a job with bicycles. It might not be necessarily Pasabuy in GenSan, but there’s an equivalent there. It’s taking a look at customer needs and finding a way to satisfy them.”. — Patricia B. Mirasol

IMF backs lifting of bank secrecy

THE Bank Secrecy Law is constraining the Bangko Sentral ng Pilipinas’ (BSP) ability to effectively supervise the banking industry, the International Monetary Fund (IMF) said.

In a financial sector assessment report released on Nov. 10, the IMF said the Bank Secrecy Law should be amended to allow the BSP full access to banks’ deposit and other data.

“BSP should be granted unimpaired access to information on all customer accounts, and the ability, without constraints, to employ and share depositor information for any prudential purpose (e.g., funding concentrations from related parties, intra-group dependencies, cash flow analysis, related-party transactions (RPT) and off-site anti-money laundering (AML) data and analysis) in order to fulfill its supervisory mandate to address safety and soundness concerns,” it said.

There are bills filed in Congress proposing to reinstate Presidential Decree 1792 which gave the BSP the mandate to examine bank deposits, provided it found reasonable grounds such as fraud, serious irregularity or unlawful activities.

The Wirecard AG scandal in June sparked renewed calls from the BSP and the Department of Finance to pass amendments to the Bank Secrecy Law. The German payments firm initially claimed it kept $2.1 billion in two local banks, but later admitted the funds did not exist.

In the report, the IMF said there is a need to strengthen the BSP’s ability to gauge the impact of mixed conglomerate structures on domestic systemically important banks (D-SIB) or those deemed as “too big to fail.”

“The BSP has to rely to a large extent on public information for assessing risks in the wider conglomerates as it does not have the power to supervise a bank’s parent or the wider group, or to review their activities to determine their impact on the safety and soundness of the bank and the bank groups within the conglomerates,” it said.

The BSP has identified several D-SIBs, most which belong to big Philippine conglomerates and some are foreign bank branches, the IMF said.

Based on the IMF’s assessment, Republic Act. No. 11211 or the New Central Bank Act only gave the BSP the additional power to obtain data and information relating to parent and affiliate companies of D-SIBs only for “statistical and policy development purposes.”

“Limited scope of this new authority does not provide the BSP with sufficient powers to assess any potential negative impact the activities of those companies may have on the safety and soundness of the banking group. Limitations on BSP’s enforcement powers also impair its ability to fully protect the bank from the actions of parent companies and affiliates,” the IMF said.

The IMF said the BSP should also strengthen its oversight on the assessment of ultimate beneficial ownership (UBO) of banks in the Philippines.

“BSP’s ability to assess the resolvability of banks, especially D-SIBs, and support the orderly resolution of a problem bank, including the preparedness for effectively dealing with a major bank failure needs to be developed,” it added.

Also, the IMF raised concern over the inclusion of a Cabinet member in the Monetary Board (MB). Under the New Ce​ntral Bank Act, one of the MB’s government sector members should also be a member of the Cabinet design​ated by the President.

“Although the Cabinet member has only one vote and there is no evidence of any past political interference in the supervisory decisions taken by the MB, the presence of a senior political appointee to the MB, by definition, gives rise to a concern that the operational independence of the BSP is compromised,” it said.

The current MB includes Finance Secretary Carlos G. Dominguez III.

The IMF also said the central bank should continue to work on improving its prompt corrective action (PCA) framework to ensure bank failures are resolved promptly. It recommended that the framework should involve the transition procedures of problem banks with the Philippine Deposit Insurance Corp. to avoid losses to the deposit insurance fund and lessen moral hazard risks.

The report detailed the IMF and World Bank’s findings on the Philippines in relation to the observance of the Basel core principles for effective banking supervision, based on information available as of July 2019. — L.W.T.Noble

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