Diokno’s FIST law gives Philippine banks a boost, but do they need it?

The ‘bad bank’ asset management company recently launched in the Philippines has not just been designed to make life easier for the banks, it could boost growth as well.

Benjamin Diokno, governor of Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, hopes that a new law to create ‘bad bank’ asset management companies will reduce non-performing loan (NPL) ratios in the Philippines and stabilize a system shocked by Covid-19.

It is a move with a lot of historical precedent in Asia, but is it necessary?

The Financial Institutions Strategic Transfer (FIST) Act was signed by president Rodrigo Duterte on February 16, and a period of consultation on its implementing rules and regulations concluded on February 25.

Diokno’s FIST law gives Philippine banks a boost, but do they need it?

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Diokno’s FIST law gives Philippine banks a boost, but do they need it?

Thanks for your interest in Euromoney!To unlock this article:

Rebuilding banks from the inside out in the digital age

Eastward bound: Why Gulf banks are tapping Asia’s capital markets

The flat-pricing revolution for inclusive SME finance in Asia

Culture and code: rewiring corporate banking for the digital age

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