Sign up | Log in



Home  >>   Daily News  >>   Philippines News  >>   Finance  >>   Philippines central bank increases bank transparency
NEWS UPDATES Asean Affairs             25  July 2011

Philippines central bank increases bank transparency

Related Stories

June 17, 2011
Philippines central bank increases reserves

May 21, 2011
World Bank extends loan to the Philippines

April 29, 2011
Philippines looks for credit rating upgrades

April 22,2011
Philippines approves ADB loan for financial sector

March 31, 2011
“Friendly” Philippine banks targeted

March  21, 2011
Increase in Philippines interest rate seen

March  3, 2011
Philippines central bank hints interest rate hike

The Bangko Sentral ng Pilipinas has tightened the rules of the Truth in Lending Act to increase bank transparency and disclosure practices and protect consumers.

The policy-making Monetary Board, through MB Resolution 1018 dated July 7, 2011, approved the updated rules implementing the law.

According to the BSP, current practices of some credit providers, particularly the use of so-called “flat” interest rates, show contractual rates for loans that substantially differ from the effective interest rate.

“There were also observations on hidden charges and deliberate quoting of lower interest rates with higher up front charges to enhance loan product marketability. As a result, the public may be misinformed or misguided about the true cost of their borrowings,” the central bank said.

Under the new rules, banks are required to charge interest on the outstanding balance only of a loan at the beginning of an interest period.

This rule “effectively prohibits” charging “flat” interest rates and other methods which misleadingly feature a markedly lower contractual interest rate than the actual EIR.

The EIR is defined in accordance with the Philippine Accounting Standards as the rate that exactly discounts estimated future cash flows through the life of the loan to the net amount of loan proceeds.

This EIR, whether quoted annually or monthly, shall be the only rate quoted in all loan documents including the marketing materials, the BSP said.

The new rules likewise clearly define finance charges which include interest, fees, service charges, discounts, and such other charges incident to the extension of credit and require a uniform way of disclosing such information.

A standard format of disclosure is provided to ascertain that every borrower is provided with information that they need to know about their loan in a manner that is simple and easy to understand, the central bank said.

Securities and Exchange Commission, Insurance Commission and Cooperative Development Authority to issue parallel regulations for the implementation of institutions under their respective jurisdictions.

The BSP is also coordinating with the Microfinance Council of the Philippines so credit granting NGOs conform with the new transparency rule.

The new transparency rule will take effect on July 1, 2012 or one year after publication to allow mounting of a comprehensive information campaign and facilitate smooth implementation.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    25  July  2011 Subsribe Now !
• Clinton urges tariff reduction in Indonesia
Subcribe: Asean Affairs Global Magazine
• Indonesia increases seaweed production Asean Affairs Premium
• Indo bureaucracy limits number of professors
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Accountants leave Malaysia for higher wages
• Philippines central bank increases bank transparency
• New Thai government could lift inflation
• Budget tweaking could finance new Thai programs
• Thai economic plans falling into place p

Asean Analysis    25  July  2011

Advertise Your Brand
• Demonstrations point up Vietnamese shortcomings Sponsor Our Events

Asean Stock Watch    25  July  2011 

• Asean Stock Watch-June 25 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand