NEWSFLASH

---

CENTRAL BANK URGED TO TIGHTEN BANK LICENSING (Reprinted with permission from the Philippine Journal)

Manila, Nov. 3, 1997 - The Philippine Deposit Insurance Corporation (PDIC) is recommending that only those with proven integrity be licensed to operate banks.

In a position paper, PDIC president Ernest Leung said "becuase of the banking system's pervasive impact on the economy, it is necessary that the grant of bank license be limited to those which clearly have the financial and technical capability. Also, the proposed owners, directors and senior management of such institutions be of proven integrity."

The paper was submitted to legislators currently deliberating changes to the General Banking Act that Bangko Sentral ng Pilipinas Governor Gabriel Singson earlier endorsed to Congress.

The banking system accommodates 51 commercial banking entities and 113 thrift or savings banks around the country.

---