BSP to allow pawnshops to expand into other activities

The Bangko Sentral ng Pilipinas (BSP) is looking to amend the regulations governing pawnshops and expand allowable corollary activities as part of its efforts to boost financial inclusion.

-  KEISHA TA-ASAN

The central bank has released a draft circular proposing the amendments. Stakeholders have until Dec. 6 to submit their feedback on the proposed amended guidelines.

"Cognizant of the critical role of pawnshops in promoting financial inclusion, the amendments contained herein shall define the scope of pawning business and the allowable corollary business activities of pawnshops to support their dynamic industry landscape and importance in the delivery of financial services," the BSP said.

Under the draft rules, pawnshops may engage in activities such as performing as remittance agents, money changers, payment system operators and as gold traders.