PDIC backs foreign entry in rural banks
Published on 07 September 2012 Hits: 126 Written by Raffy Ayeng
The Philippine Deposit Insurance Corp. (PDIC) expressed support for the Senate and House bills aiming to amend the Rural Banks Act of 1992, allowing foreign ownership of rural banks.
PDIC President Valentin Araneta said in a statement that the broadening of sources of capital and banking technology implied by the proposed amendments, could only serve to increase the range of options for rural banks to strengthen their financial and organizational capabilities.
A law allowing foreign ownership of rural banks will further enhance the initiatives to strengthen the banking sector. The House of Representatives passed on third and final reading a bill allowing foreign equity into the rural banking system.
House Bill 5360 seeks to amend Section 4 of Republic Act 7353, or the Rural Banks Act, to open new source of equity infusion for rural banks, allowing non-Filipino citizens to be members of the board of directors. The proposed bill allows foreigners to buy and own up to 40 percent of a rural bank’s authorized capital stock.
“With the restriction, rural banks remain the only category of domestic banks that is not allowed any foreign equity,” said Rep. Sergio Apostol of Leyte province, who chairs the House Committee on Banks and Financial Intermediaries
-- --------------------------------------------------------------------- CARLOS ANI - International Microfinance Consultant - SEEDFINANCE Corporation Chairman Mailing address: PO Box 90 UPLB Los Banos Laguna, Philippines 4031 Emails: carlosani@gmail.com , carlosani@seedfinance.net Landline Phone: +63495010127 (PLDT) Cellphone Numbers: +63926277-8044 (TM) and +63942484-4400 (Sun) Websites: CARLOSANI.COM - http://www.carlosani.com DEVJOBS - http://www.devjobsmail.com PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.blogspot.com Family website - http://www.anifamily.net SEEDFINANCE Corporation - http://www.seedfinance.net My News Clippings - http://www.myclipps.posterous.com Skype name: carlosaniph --------------------------------------------------------------------
