MANILA, Philippines - The Philippine Deposit Insurance Corporation (PDIC) is supporting a bill that would allow foreign ownership of rural banks.
PDIC President Valentin A. Araneta said the proposed amendments to the Rural Banking Act would help broaden the sources of capital for rural banks, strengthening their financial capabilities.
"A law allowing foreign ownership of rural banks will further enhance the initiatives to strengthen the banking sector," the PDIC said.
Last month, the PDIC and Bangko Sentral ng Pilipinas (BSP) signed the memorandum of agreement on the Strengthening Program for Rural Banks Plus (SPRB Plus). The program will be available until December 31, 2013.
SPRB Plus includes thrift banks, commercial banks, and non-bank corporations as among the strategic third party investors entitled to incentives under the program.
Under the SPRB Plus Program, certain incentives including branch licenses will be provided by the BSP and PDIC can grant financial assistance to the acquiring thrift and rural banks.