Thrift banks in the Philippines are taking up a programme introduced by the country's central bank to make letters of credit (L/Cs) more available.

This follows Bangko Sentral ng Pilipinas' (BSP's) move earlier this year when it said that the country's thrift banks could issue L/Cs in foreign currencies to service the needs of clients engaged in international trading.

Licence application

One of the thrift banks seeking a trade-financing license with the BSP is the Robinsons Savings Bank. It is ranked among the Philippines' top ten thrift banks in terms of assets.

The bank operates a network of 46 branches - nearly half of which are located in metropolitan Manila - and plans to extend its network to 50 branches by the end of the year.

SME support

The central bank decision aims to benefit the thrift banks that essentially serve the Philippines' small- and medium-sized enterprises.

Prior to the BSP's decision in March to allow thrift banks to issue L/Cs in foreign currencies, these banks were only allowed to issue peso-denominated L/Cs.

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