Singapore sovereign wealth leads the field in Covid deal activity
5 March, 2021
Why the Turkey Wealth Fund is looking to Asia
9 March, 2021March 7 2021
Benjamin Diokno, governor of Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, hopes that a new law to create ‘bad bank’ asset management companies will reduce non-performing loan (NPL) ratios in the Philippines and stabilize a system shocked by Covid-19.
It is a move with a lot of historical precedent in Asia, but is it necessary?
The Financial Institutions Strategic Transfer (FIST) Act was signed by president Rodrigo Duterte on February 16, and a period of consultation on its implementing rules and regulations concluded on February 25.
It allows for the establishment of FIST corporations – basically, asset management companies commonly known as bad banks – which are authorized to acquire non-performing assets (NPAs) from financial institutions.
This allows the banks to strengthen their balance sheets during a time of financial system stress brought about by the Covid-19 pandemic.
Read the full article here
