Bank secrecy law amendments can help PH bounce from pandemic–BSP chief

BSP Governor Benjamin Diokno. INQUIRER file photo / EARVIN PERIAS

MANILA, Philippines — For Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno, amendments to the bank secrecy law can help in the country’s recovery from the coronavirus pandemic.

Diokno made the remark during the first day of the budget deliberations in the House of Representatives led by the committee on appropriations.

“There’s another measure that we would like to push and that is the amendment to the bank secrecy law. I think that is really important to enhance the credibility of the Philippines,” Diokno said when asked by Deputy Speaker Luis Raymund Villafuerte regarding legislation that could help the country’s recovery from the pandemic.

“I think if we can pass that, it will also help us gain more credibility right now,” Diokno added.

Republic Act No. 1405, or the bank secrecy law, prohibits the disclosure of, or inquiry into, all deposits in banks and banking institutions in the Philippines.

Meanwhile, National Economic and Development Authority (NEDA) Acting Secretary Karl Chua said that amendments to the Agri-Agra Law of 2009, which requires banks to set aside at least 15 percent of their loanable funds to agriculture and 10 percent to agrarian reform, can also be helpful.

Diokno, however, pointed out that the lower chamber has already passed the measure and that the ball is now on the side of the Senate.

Other legislations mentioned during the hearing include the Financial Institutions Strategic Transfer (FIST) Act, the Corporate Recovery and Tax Incentives for Enterprises (Create) Act, the GFIs Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) Act, and amendments to the Public Service Act, among others.

JPV