By The Financial District
Sep 22, 20232 min
Finance Secretary Benjamin E. Diokno assured thrift banks of the government's support in establishing a resilient financial system and urged them to accelerate their digital transformation initiatives during the Chamber of Thrift Banks (CTB) Annual Convention on Friday at the Dusit Thani Hotel in Makati.
Thrift banks play a vital role in the Philippine economy by providing individuals and small and medium-sized enterprises (SMEs), especially the unbanked and underbanked, with access to financial services. I Photo: MDI Novare
"Rest assured that the Department of Finance (DOF) stands ready to collaborate with the thrift banking community in delivering quality, affordable, and accessible financial services to the Filipino people," he said in a video message.
Thrift banks play a vital role in the Philippine economy by providing individuals and small and medium-sized enterprises (SMEs), especially the unbanked and underbanked, with access to financial services.
To strengthen this sector, the government is advocating for the passage of the Passive Income and Financial Intermediaries Taxation Act (PIFITA), which is currently pending in the Senate.
This reform will deepen the country's capital markets by simplifying and rationalizing the tax regime for passive income, financial services, and financial transactions, thereby facilitating the flow of capital.
"With this reform, the Philippines enhances its competitive edge in attracting capital and investments that are urgently needed to finance major infrastructure projects and create more and better jobs," the Finance Secretary said.
The DOF also supports digitalization efforts that enable thrift banks to expand their services for greater financial inclusion.
"Leverage emerging technologies to boost operational capacity, maximize scalability, enhance resilience, promote financial inclusion, and stimulate countryside development," Secretary Diokno said.
The CTB is the umbrella organization of thrift banks in the country.
It was established to provide a platform for its members to promote, develop, expand, and strengthen the role of savings and loan associations, private development banks, and savings and mortgage banks (commonly known as thrift institutions) in accumulating savings, enhancing trade, commerce, industry, and agriculture, and contributing to the economic development of the country.