BY JOHNNY NOVERA
TWO major policy moves approved by our government will bring into the country unrestricted entry of foreigners. Will the new policies be good for us? They are:
- First, welcoming US troops to have wider access to Philippine military facilities and even station themselves here with their equipment, supplies and other war materials in the next 10 years under the so-called Enhanced Defense Cooperation Agreement (EDCA); and
- Second, the unanimous approval a few days ago by the Lower House on third and final reading of House Bill (HB) No. 3984 that would allow foreign banks to fully operate in our country, just like the local banks.
First, with regard to the entry of US troops, we heard that people in Subic are excited about seeing again American soldiers stationed in their area because of the business that they can bring.
While the soldiers’ presence might mean more business, it can bring back again social problems like prostitution and unwanted children in areas near military camps, just like in the old Subic.
HB No. 3984, on the other hand, will find local banks competing with foreign units in mobilizing funds for their lending and operation. We believe that the country will not benefit much from this law, considering that all the foreign banks will bring in to invest is only their initial paid-up capital.
Not only that, the new banking law will enable foreigners, say those investing in rural banks, to have access to every nook and corner of the country. History might repeat itself as in the case of the Japanese nationals living here before the outbreak of World War II. They turned out to be all spies while they work or do business.
As it is, we have already a big network of banks consisting of 9,884 units, including branches, plus 14,528 ATMs (automated teller machines) serving the country. The problem, as we have mentioned before, is the policy of Bangko Sentral ng Pilipinas (BSP) of allowing banks to crowd the cities and other urban centers, when there are still more than 1,500 municipalities in outlying areas that do not have banks.
Moreover, there is so much money in our banking system today. At one time some P1.9 trillion of funds was just parked in a special deposit facility with BSP, but a substantial part of the deposit was withdrawn by the banks sometime last year when the interest rate was lowered by Bangko Sentral. Where did the banks put all that money? (For comments or reactions, please e-mail tojnoveracompany@yahoo.com)/PN
