The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, said Thursday it approved the second phase of amendments to regulations on the foreign currency deposit system.
BSP Governor Benjamin Diokno said the amendments aimed at recalibrating the requirements for Foreign Currency Deposit Unit transactions in line with business norms and risk management practices.
“The second phase of the reforms will afford banks the opportunity to perform efficient and flexible liquidity cash management of foreign currency denominated funds by easing the stringent conditions on lending to regular banking unit by the E/FCDU,” Diokno said.
The amended regulations expand the coverage of entities that are authorized to engage in FX transactions to include Islamic banks and digital banks and streamline the related licensing requirements for banks applying for the FCDU authority.
All banks were previously required to seek the prior approval of the Bangko Sentral before they could engage in expanded/FCDU transactions or E/FCDU.