BAP seeks legislative reforms to modernize PHL banking sector

THE BANKERS Association of the Philippines (BAP) is pushing for changes to laws on mandated credit and deposit secrecy to make these more relevant to current times and help modernize the banking sector.

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“Mandatory credit lending policies and rigid bank secrecy laws, once well-intentioned, have become constraints in today’s labor-driven financial marketplace. The BAP is taking decisive steps to advocate legislative reforms, confronting inertia head-on. By modernizing these laws, we create a fertile ground for tech-driven analytics, smart risk management, better credit assessment, and a more competitive and transparent banking sector,” BAP President and Bank of Philippine Islands (BPI) President and Chief Executive Officer Teodoro K. Limcaoco said ina speech at The Asian Banker's Finance Philippines 2025 forum held on Thursday.

Mr. Limcaoco said laws that require banks to allot certain percentages of their loan book to the agriculture sector as well as micro, small, and medium enterprises (MSME) may no longer be relevant in the current landscape amid the increase in financial institutions that specifically target these underserved markets.