Metro Manila (CNN Philippines, May 12) — Senators are calling on state-owned Land Bank of the Philippines to reduce its initial deposit requirement so that more Filipinos can open a savings account.
Senator Cynthia Villar wants to bring it down from ₱500 up to as low as ₱50.
READ: E-wallets drive surge in deposit accounts, but over 51M Filipinos still unbanked – BSP
“Government lang kayo e, dapat magse-serve kayo sa mga tao, hindi kayo parang commercial bank,” Villar said on Wednesday during a Senate hearing on the loan allocation for workers in the agriculture and fisheries sector, and agrarian reform beneficiaries.
[Translation: You’re just a government bank, you should serve the people, you should not be like a commercial bank.]
“Bakit ₱500? Mahal ang ₱500. Walang ₱500 ang mahihirap (Why ₱500? That’s expensive. The poor do not have ₱500),” Villar added.
Elcid Pangilinan, Land Bank’s vice president for strategy and knowledge management, replied that the amount is an “important input.”
Villar then asked the bank official how much he thinks the poor can afford. Pangilinan replied, ₱100. She then asked fellow lawmakers to weigh in.
“Okay na siguro ‘yung ₱100 kasi ‘yung iba sa kanila nakakabili nga ng alak at sigarilyo e (Maybe ₱100 is okay because some of them can afford to buy liquor and cigarettes),” Senator Nancy Binay said.
“Alam mo naman sila, iba priority nila (You know them, they have different priorities),” Villar quipped.
She cited the 2019 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas, which stated that 51.2 million Filipinos, or 71 percent of the total adult population, do not have a bank account. The same report said almost half of the unbanked said they do not have enough money, while others lacked documentary requirements or did not see the need for an account.
In the end, Villar, the richest member of the Senate based on Statements of Assets, Liabilities and Net Worth, said a ₱50 initial deposit requirement may encourage more Filipinos to apply for a bank account.
Pangilinan said Land Bank also offers an electronic transaction account for free, something that can be used by the government in the distribution of financial aid. The senators insisted that opening a savings account should be made affordable.
