The Philippine central bank will now allow banks to bypass obtaining approval for certain foreign exchange transactions.
Bangko Sentral ng Pilipinas said in a May 18 release that subject to conditions, banks no longer need its prior approval for the conversion of foreign currency loans to Philippine peso loans. Similar approval will also not be needed for the transfer of foreign currency loans and acquired real estate property to banks' regular banking unit books, from their foreign currency deposit unit books.
Lenders do not need to obtain approval provided they fully understand the nature and extent of the risks involved, and have installed appropriate policies and risk management systems to manage these transactions.
