House approves bill easing pandemic impact on financial industry

The House of Representatives approved on second reading the Financial Institutions Strategic Transfer Act, which aims to help banks and other financial institutions manage their non-performing assets (NPAs) amid the COVID-19 crisis.

The bill seeks to ease the pandemic's impact on the financial industry by allowing these entities to maintain financial health and continue providing liquidity to the economy.

House Committee on Banks and Financial Institutions chair Junie Cua Jr., who introduced the measure, highlighted that most financial institutions are facing delayed loan collections and higher NPAs due to economic disruptions.