BSP Governor Amando M. Tetangco, Jr. announced today that in line with the thrust to simplify regulations, the Monetary Board has approved the lifting of the prior BSP approval and registration requirements for loans to be obtained by non-banks with quasi-banking functions (NBQBs) from offshore sources, offshore banking units (OBUs) and foreign currency deposit units (FCDUs) of banks. This will be effective on 15 September 2016 together with the other liberalization measures approved last week.
The new policy will facilitate borrowing transactions of NBQBs to fund their operations and projects and better contribute to economic growth. These accounts, however, shall continue to be covered by the reportorial requirements under the Manual of Regulations on Foreign Exchange Transactions.
The Governor added that policy reforms will continue to be studied and adopted, as appropriate, given prevailing conditions as well as projected trends and developments onshore and offshore.