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June 23, 2024

BSP issues regulations on agriculture, fisheries and rural development financing: What you need to know

The Bangko Sentral ng Pilipinas (BSP) is implementing new regulations regarding agriculture, fisheries and rural development (AFRD) financing for banks.

These regulations include rules on reporting periods, timelines, clarifications, and changes to terms, accounts, and instructions on compliance with the implementing rules and regulations (IRR) for AFRD financing.

The BSP has released a draft circular for public comment until March 27.

In November 2022, the BSP’s Monetary Board approved an IRR requiring all banks to allocate 25 percent of their total loanable funds for AFRD financing under Republic Act No. 11901, also known as “The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.”

BSP Governor Felipe M. Medalla said that Circular No. 1159, which sets the rules on the 25 percent requirement for AFRD financing, will be mandated for 10 years.

Newly-created banks will be exempt from the required allocation for a period of five years, as defined by the BSP.