BAP tells banks to keep ‘reasonable' lending rates

'reasonable’ lending rates

- LEE C. CHIPONGIAN

Banks are called to keep the practice of a fair and appropriate lending rates to avoid over-indebting borrowers while on COVID-19 lockdown.

Bankers Association of the Philippines (BAP) president Cezar P. Consing yesterday said banks should maintain “reasonable lending rates” and to try to “keep such rates as close as possible to pre-ECQ (enhanced community quarantine) levels.”

“As we move into week 3 of the ECQ, the impact of the crisis on the economy, including our corporate and consumer borrowers, is becoming more apparent,” said Consing who is also president and CEO of Bank of the Philippine Islands.

He is asking all banks, not just BAP members which are mostly big banks, to also make sure that digital channels are open and always accessible to homebound clients and also to “contribute to (a) stable and liquid financial markets.”

Consing also reminded banks to ensure availability of cash in branches and in ATMs, as well as to “maintain a level of branch presence that allows for the execution of transactions that cannot be performed digitally.”