THE reporting system imposed on banks that trade government securities using the platform of the Philippine Dealing and Exchange Corp., or Pdex, forces banks to violate deposit- secrecy rules.

This “forced” violation has scared potential clients who normally transact business on the strength of absolute anonymity.

This and several other issues have resurfaced on Wednesday at the House Committee on Banks inquiry into Pdex-imposed friction costs that has riled the presidents and chief executive officers of many banks, particularly the smaller lenders.

The Chamber of Thrift Banks, whose members trade government securities as an added service than a core activity, called on Pdex and the government securities regulators to strike this off the rule books to restore peace and order in the government securities market.

“Our clients now fear going to us for business because mapping rules requires us banks acting as brokers to file transaction reports with the Pdex. The rule has proven costly and clients no longer go to us for their requirements,” Pascual Garcia, president and chief executive officer at the Philippine Savings Bank, said Wednesday.

PS Bank is a fully owned subsidiary of the Metropolitan Bank & Trust Co. the country’s largest lender by asset.

Garcia’s statement is consistent with disclosures by Camarines Sur legislator Luis Villafuerte that so-called Pdex impositions have drastically reduced the volume of trade of government securities to around P6 billion a day when this used to top P30 billion a day.

At the heart of the banks’ complaints are new rules the Pdex made mandatory that, for example, require banks to register with them when acting as broker and register again when acting as dealers of government securities.

Union Bank president Victor Valdepenas has assailed the rule and said at the House hearing on Wednesday this was instituted “purely for purposes of intervention” than anything else.

Both he and Garcia could not comprehend the logic behind the requirement forcing banks that trade for their clients to pay mapping fees when the service did not cost anyone anything more than the spread banks place on the transaction prior to the Pdex impositions.

“These are all committed trades, anyway, so why should we be forced to pay mapping fees?” Garcia asked.

Banks were willing to meet Pdex on the matter of fees as long as they commit to rationalize and lower it soonest. Their quarrel with Pdex on the matter could still be salvaged as long as Pdex undertakes to make adjustments, Garcia added.

THE reporting system imposed on banks that trade government securities using the platform of the Philippine Dealing and Exchange Corp., or Pdex, forces banks to violate deposit- secrecy rules.

THE peso yesterday extended its loss after oil prices soared to record levels, raising import cost and increasing corporate demand, currency traders said.  

THE Philippine central bank, struggling to spur growth and slow the fastest inflation in three years, is reluctant to raise interest rates on concern it could boost the peso.

PHILIPPINE banks are lending themselves at levels prevalent prior to the 1997 financial crisis, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

THE Land Bank of the Philippines is extending P4.3 billion as credit to qualified growers of jatropha, the bank said Wednesday.

The qualified growers include cooperatives, small and medium entrepreneurs and farmers’ organizations.

FIRST Gen Corp. (First Gen) said Wednesday its wholly owned subsidiary Unified Holdings Corp. plans to offer debt securities to raise much-needed capital.