Dominguez said the proposed Financial Institutions Strategic Transfer Act will protect the financial industry from any lasting damage, and ensure a steady source of credit for the pandemic-hit sectors of the economy while providing safeguards to consumers.
“Enacting FIST will fortify the financial sector and keep it strong and stable for the difficult task of rebuilding our economy,” Dominguez said. “By keeping non-performing assets contained and managed, FIST will expand the amount of risk banks can take. This benefit cannot be understated in a crisis, when lending to businesses is riskier but also more urgently needed,” he said.
Dominguez said that while FIST foregoes revenues of between P3.3 billion to P13 billion every year for the next five years to clear the books of banks of bad debts, this was needed to keep the economy going.