House panel OKs Bangko sa Baryo bill

MANILA, Philippines — The House of Representatives committee on banks and financial institutions has endorsed the Bangko sa Baryo bill, which seeks to make banking services available to the remotest communities in the country.

Eastern Samar Rep. Ben Evardone, committee chairman, yesterday said it is important that the government take financial services to the barangays since most Filipinos do not have access to banks.

He said the bill, if enacted into law, would allow people in the countryside to improve their lives by availing themselves of the advantages and convenience of the banking system.

Camarines Sur Rep. Luis Raymund Villafuerte, author of the bill, said the proposed law would be easier to implement with the national ID system that the government is about to put in place.

He said the approval of the bill by the House soon would be “in step with the Duterte administration’s goal of financial inclusion for all Filipinos.”

Under the measure, financial services companies would be mandated to deploy “cash agents” to barangay communities to offer banking services. These personnel would have to undergo rigid screening procedures by their bank-employers and the Bangko Sentral ng Pilipinas.

Villafuerte said the bill also aims to “increase citizen’s financial literacy and capability so they understand different financial services.” 

“Soon, an average barrio folk will be able to make sound financial decisions and put his hard-earned money to beneficial use with the assistance of these authorized cash agents,” he said.
He added that local government units (LGUs) would be mandated to launch financial literacy and capability programs to increase the public’s understanding of financial services and products the banks offer and its benefits.

Villafuerte cited a recent Asian Development Bank report that shows only 28 percent of Filipino adults own a bank account, only about 15 percent save money with a formal financial institution, and only 10 percent borrow money from formal institutions. 

This means the government has a lot to do to promote financial inclusion, he stressed.