Business News
ABD approves 200-million-dollar loan to Philippines
Dec 8, 2010, 5:51 GMT
Manila - The Asian Development Bank (ADB) said Wednesday it has approved a 200-million-dollar loan to fund financial sector reforms in the Philippines in the wake of the global economic crisis.
The Manila-based bank said the loan aims to improve stability in the financial sector by increasing the efficiency and liquidity of markets and strengthening the regulatory environment.
It noted that while capital markets in the Philippines have matured, the investor base needs to be broadened and market access improved to mobilize savings.
Among the initiatives to be supported by the loan is a programme offering incentives to encourage weaker rural banks to merge with stronger ones, the ADB said.
It would also boost efforts by the Philippine central bank to provide additional liquidity to the banking system and to double the deposit insurance ceiling for bank account holders.
The ADB said steps taken to beef up regulatory oversight would be strengthened, such as a framework for over-the-counter trading laid down by the Securities and Exchange Commission.
'All these actions will lead to a deeper, more diversified and resilient system, resulting in improved access to finance and greater contribution to growth and poverty reduction,' said Stephen Schuster, an ADB financial sector specialist.
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