The government should conduct a comprehensive review of its policies and the laws governing the banking sector, House Committee on Good Government and Public Accountability Chair and Iloilo Rep. Jerry Treñas said in a press release from Congress Saturday.
"Both the Executive and Congress should coordinate a cleansing process to determine the integrity and financial viability of the existing banking institutions in the country," Treñas said.
He noted the current issue relative to the closure of the Export Import Bank which ruined the lives of many depositors,many of them small and struggling businessmen.
Treñas said the EIB fiasco only underlines the necessity for a policy overhaul, especially the role of bank officials and their limitations in the conduct of the various business transactions that affect the integrity of the entire banking industry.
The review should also allow government to decide judiciously on whether a certain bank in distress needs to be rehabilitated, merged with other banking entities or closed in the interest of the public, the stockholders and the industry itself, the press release said.
A congressional inquiry is also in order, so that related laws be reviewed, strengthened or even repealed if warranted to promote transparency and credibility of the sector, it added.
Treñas expressed confidence that things will turn for the better for the Philippine economy, which official reports show grew by 5 to 6 percent in 2012 as against the 3.7 percent growth recorded in 2011.
It was also noted that banks in the Philippines had been granting development loans (maturing in 10 to 12 years) that support anti-poverty and infrastructure programs, the press release added.*
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