Philippines BSP, SEC Coordinating on Non-Bank Finance Regulation

Bangko Sentral ng Pilipinas and nation’s Securities and Exchange Commission are coordinating on regulation to protect consumers from non-bank financing, central bank Governor Felipe Medalla says.

• Central bank must work with SEC which covers institutions that are lending but don’t have anything to do with deposit money, Medalla tells a media briefing after a meeting of the Regional Consultative Group for Asia in Cebu
• Imposing a ceiling on lending rate will push borrowers to lenders “that are almost impossible to regulate,” he says
• On the other hand, very high lending rates “are actually signals that later on, there will be ...