IlluMyFi

THE Bangko Sentral ng Pilipinas (BSP), through Monetary Board Resolution 1400 on Dec. 5, 2024, lifted the moratorium on new Electronic Money Issuers from Non-Bank Financial Institutions (EMI-NBFIs) to boost digital payments and expand financial services to underserved communities nationwide."The BSP's decision to lift the moratorium aims to promote digital payments, enhance financial inclusion, and foster innovation that could serve a wider segment of the market," BSP Deputy Governor Mamerto Tangonan noted in a statement.This will open doors for new players in the digital payments space, provided they meet stringent requirements designed to ensure robust market entry, Tangonan said.The BSP will require data-driven applications and ask applicants to present evidence-based market studies that demonstrate a clear value proposition. Applications must also detail innovative business models, target unserved or niche markets, and leverage new technologies."Applicants must meet the standard licensing criteria, which include an assessment on the transparency of the ownership and control structure, suitability of shareholders, fitness and propriety of directors and senior management, adequacy of capital, and presence of appropriate risk management system," Tangonan explained."Only applications that meet the standard licensing criteria ... shall be accepted for processing," he added.To recall, the BSP extended the moratorium in 2023 until Dec. 15, 2024. The initial two-year moratorium in November 2021 was imposed to manage resources, ensure financial stability and encourage the growth of innovative e-money solutions.The Philippines currently has 44 BSP-licensed EMI-NBFIs, with four additional applications under review through the sandbox framework.

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05.01.25 04:15

by manilatimes.net

Fed officials say job not done on inflation

TWO Federal Reserve policymakers on Saturday said they felt the US central bank's job on taming inflation was not yet done, but also signaled they did not want to risk damaging the labor market as they try to finish that job.The remarks, from Governor Adriana Kugler and San Francisco Fed President Mary Daly, highlight the delicate balancing act facing US central bankers this year as they look to slow their pace of rate-cutting. The Fed lowered short-term rates by a full percentage point last year, to a current range of 4.25-4.50 percent.Inflation by the Fed's preferred measure is well down from its mid-2022 peak of around 7 percent, registering 2.4 percent in November. That's still above the Fed's 2-percent target and in December policymakers projected slower progress toward that goal than they had earlier anticipated."We are fully aware that we are not there yet — no one is popping champagne anywhere," Kugler said at the annual American Economic Association conference in San Francisco. "And at the same time... we want the unemployment rate to stay where it is" and not increase rapidly.In November, unemployment was 4.2 percent, consistent in both her and colleague Daly's view with maximum employment, the Fed's second goal alongside its price stability goal."At this point, I would not want to see further slowing in the labor market — maybe gradually moving around in bumps and chunks on a given month, but certainly not additional slowing in the labor market," said Daly, who was speaking on the same panel.The policymakers were not asked, nor did they volunteer their views, about the potential impact of incoming president Donald Trump's economic policies, including tariffs and tax cuts, which some have speculated could fuel growth and reignite inflation.

Philippines