|
RURAL
banks are being pushed to the brink of extinction
because of the global economic crunch, and the Bangko
Sentral ng Pilipinas (BSP) must rescue the industry.
In an
appeal to the central bank, House Speaker Prospero
Nograles said the industry—being the most accessible
conduit of the government in providing credit facilities
to farmers and small-scale entrepreneurs in the
countryside—has to be rescued.
Nograles
said the BSP should extend the same support being
accorded to big commercial banks to save the country’s
rural banks.
He cited
the case of United Coconut Planters Bank, which received
a P30-billion capital infusion to ensure the sequestered
bank will survive a tougher business environment.
“[The
BSP] should do the same to the 468 rural banks, which
can become the government’s lead instrument in boosting
food production,” Nograles said.
He meant
the 468 rural banks which have been shut down by the BSP
for failure to meet the required capital adequacy ratio
amid increasing economic pressure now being experienced
by most Filipinos on account of the high cost of living.
“Most
Filipinos now would rather have something to eat first
rather than use what little cash they have for their
outstanding credits from these rural banks. Naturally,
many of our rural banks cannot keep up with the BSP-required
capital adequacy since most of their clients are poor
farmers. Sikmura muna bago utang,” said Nograles.
“The BSP
must infuse capital and open up the 468 rural banks that
it closed instead of bailing out the big commercial
banks who, through mismanagement and DOSRI [directors,
officers, stockholders and related interests] loans, got
themselves into trouble,” he added.
Nograles
earlier expressed full support for the immediate passage
of House Bill 3827, which calls for a two-year
suspension of the “capital adequacy ratio…so that we
will save them from extinction.”
At the
same time, Nograles asked the House Oversight Committee
and the Committee on Banks and Financial Intermediaries
to get to the bottom of alleged malpractices in the
banking sector as revealed by Kabalikat ng Malayang
Pilipino (Kampi) Rep. Luis Villafuerte of Camarines Sur.
Villafuerte earlier said up to P10 billion pesos are
being misdeclared by the central bank in understating
its annual dividend that is supposed to be remitted to
the National Treasury.
This is
“very disturbing and Congress should exercise its
oversight function to get into the bottom of this
report,” Villafuerte added. |
