Banking sector backs BSP order on holiday operations

CEBU, Philippines - The local banking community lauded and expressed support to the new initiative of the Bangko Sentral ng Pilipinas (BSP) to no longer allow banks to shut down operations during local holidays without prior notice to the central bank.

The Circular 802 that was signed last June 21 ordered lenders and their extension offices to notify the central bank two days before their closure in the observance of a local holiday within their area.

Prior to the amendment, lending institutions were only required to have their closure during local holidays approved by the banking association where they belong.

Cebu Bankers Club past president and Rizal Commercial Banking Corporation (RCBC) Visayas first vice president and regional marketing head Prudencio Gesta commended the move of the central bank as beneficial for both business and banking communities.

He said that the new order is good for the banking industry especially to the banking clientele who could now avail of uninterrupted banking services particularly those areas that are open for business.

He further noted that it may, however, only affect employees who cannot enjoy the local holiday celebration but are duly compensated with the higher cost involved being a holiday.

Gesta then added that orders made by BSP are all intended to improve banking services for the Filipinos.

The circular that covers all banks, their branches and “other banking offices” will be required to abide with the new order that will take effect 15 days from the July 8 release.

“Banks and their branches are ordered to “submit, either individually or through their head offices” a “prior notice of their intended closure” to the BSP Supervisory Data Center. The required notice shall be supported by a certification jointly signed by the president of the bank or officer of equivalent position and the head of the branches department,” BSP explained in an earlier national report. 

Financial institutions are also tasked to post the notice and reason of their closure on their establishments to inform the depositors and clients. /JOB (FREEMAN)