President Rodrigo R. Duterte has signed the Financial Institutions Strategic Transfer (FIST) Bill into law.
According to Presidential Spokesperson Harry Roque, the FIST Law shall strengthen the financial sector to aid in the country’s for economic recovery. Under the law, the state recognizes the significant role of banks and financial institutions as “mobilizers of savings and investments and in providing the needed financial system liquidity to keep the economy afloat”.
The FIST law aims to create asset managing corporations that will purchase “non-performing assets” from banks. In relation to this, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno shared that the law will greatly help in strengthening the banking system amidst the global health crisis.
