Gov’t eyes measures vs irregular banking practices

The government is intent on implementing measures that would curb irregular banking practices like money laundering, President Arroyo announced yesterday.

Speaking during the inauguration of the Rizal Commercial Banking Corp.’s new building in Makati City, the President said she would support the recommendation of the Bangko Sentral ng Pilipinas (BSP) to empower the monetary authority to handle such problems.

Mrs. Arroyo said she will take up the matter during the forthcoming meeting of the Legislative-Executive Development Advisory Council (LEDAC).

She said the LEDAC will push for the passage of amendments to the Bangko Sentral charter that would grant additional regulatory powers to the BSP.

"We should free (the banking sector) from unfair practices to make it attractive and competitive," she said.

The amendments to the BSP charter are embodied in House Bill No. 878 and allow the BSP to have access to deposits of P50 million and more to ensure that such monies are not from illegal sources.

"Let me assure that we are wary of possible excess and abuses against the rights of depositors. Thus, we’ll make sure that adequate safeguards against arbitrariness are placed In this legislative initiative before it’s passed into law," the President added.

She also called on leaders of the business and financial community to provide a business climate conducive to national development. – Liberty Dones