BSP seeks ‘limited lifting’ of bank secrecy law By Jovee Marie N. Dela Cruz @joveemarie
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22 DEAD AS HEAVY GUNFIRE ROCKS IRAQ’S GREEN ZONE AMID VIOLENT PROTESTS
O strengthen the Philippine banking system, the Bangko Sentral ng Pilipinas (BSP) on Tuesday called on the House of Representatives to prioritize passage of the “limited lifting” of the bank deposit secrecy law and the proposed Financial Accounts Regulation Act. At a hearing of the House Committee on Banks and Financial Intermediaries, BSP Senior Assistant Governor and General
Counsel Elmore Capule said the BSP recommends limiting the amendments to the secrecy of bank deposit law to within the confines of BSP’s banking supervision and its investigation of closed banks. In 1981, Capule said, the BSP was granted the authority to look into or examine bank deposit accounts when authorized by the Monetary Board pursuant to PD 1792. However, he said this authority was removed in 1993 when Republic Act 7653 or the BSP Charter was
enacted, and expressly repealed PD 1792. Citing a study of the International Monetary Fund (IMF) and World Bank, Capule said to date, only the Philippines has secrecy of bank deposits laws that constrain prudential supervision. “The current laws on secrecy of bank deposits restrict the depth of information and records that BSP can look into,” he said. “WB and IMF noted that bank secrecy laws in the country restrict the BSP’s ability to undertake effective supervision,” he added.
WB and IMF proposed, Capule said, that “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 in order to fulfill its supervisory mandate to address safety and soundness concerns.” “One of the recommended actions to improve compliance with Basel Core Principles and the effectiveness of regulatory See “BSP,” A2
BusinessMirror A broader look at today’s business Wednesday, August 31, 2022 Vol. 17 No. 327
SC STOPS LGUS FROM IMPLEMENTING NCAP www.businessmirror.com.ph
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By Joel R. San Juan
Raw sugar stockpile gone soon– millers bloc
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HE Supreme Court on Tuesday decided to indefinitely enjoin the implementation of the no-contact apprehension (NCAP) program being implemented by several local government units (LGUs) in Metro Manila on erring motorists. SC Public Information Office (PIO) chief and spokesman Brian Keith Hosaka said the Court, at its regular en banc session, issued a temporary restraining order (TRO) against NCAP which had been the object of public outcry for allegedly being unconstitutional and oppressive. The TRO also covers ordinances issued by local government units to implement the NCAP. It also barred traffic authorities See “NCAP,” A2
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HE Philippine Sugar Millers Association (PSMA) on Tuesday warned that the country’s current raw sugar stockpile would be soon depleted. PSMA President Pablo Lobregat told senators on Tuesday that the country’s raw sugar stocks, which stood at about 142,000 metric tons (MT) in early August, would soon be gone.
A SIGN announcing the “no contact apprehension” traffic management policy is seen at the intersection of Delpan and Zobel streets at the boundary of Makati and Manila. The Manila City government is one of five local government units in Metro Manila that have been enjoined by the Supreme Court from implementing NCAP. The SC set oral arguments for January 2023. BERNARD TESTA
See “Sugar,” A2
PHL TO SUFFER WHITE ONION, GARLIC SHORTAGE By Jasper Emmanuel Y. Arcalas
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@jearcalas
HE Philippines is projected to suffer this year a shortage of key ingredients in making Filipino dishes, such as white onion and garlic, as total supplies, even with imports, are insufficient to meet overall demand for the commodities. In a presentation before lawmakers, agriculture officials presented the Department of Agriculture’s (DA) outlook on the country’s onion and garlic supply and demand situation for this year. The DA’s presentation showed
that the Philippines would suffer a 16-day shortage of garlic by the end of the year as total supply, including imports, is projected to have a shortfall of about 63,850 metric tons (MT). The DA projected that total supply of garlic this year would be at nearly 83,000 MT compared to the total estimated demand of at least 146,850 MT. “We are not sufficient in garlic. We are really dependent on importation,” Agriculture Undersecretary-designate and Spokesperson Kristine Y. Evangelista told lawmakers on Tuesday. The country’s garlic selfsufficiency ratio (SSR) in 2020
plunged to a record low of 7.1 percent. The SSR refers to the amount of total demand of a commodity that is supplied by local production. The DA also projected that the country’s onion supply this year would be more than enough to meet total demand. The DA estimated that total supply, including imported volume, would be at 343,427 MT, more than enough to meet 288,344 MT total demand. The country will end the year with an ending stock of 26,828 MT of onion, sufficient to last for 37 days. The DA, however, pointed out that the onion supply outlook
includes all types of onion such as red and white. Agriculture officials confirmed during the House Committee on Agriculture and Food hearing that the country is suffering from a shortage of white onions. Bureau of Plant Industry (BPI) Assistant Director Ariel J. Bayot said the country’s combined white onion supply of locallyproduced and imported volume would only last for about 8 to 9 months from January. Bayot explained that the imported white onions in January lasted for 5 months while local See “Shortage,” A2
PESO EXCHANGE RATES n US 56.0380 n JAPAN 0.4040 n UK 65.6093 n HK 7.1410 n CHINA 8.1104 n SINGAPORE 40.1591 n AUSTRALIA 38.6718 n EU 56.0436 n KOREA 0.0417 n SAUDI ARABIA 14.9216 Source: BSP (30 August 2022)