LIBRT: Online lending should be regulated by the Bangko Sentral ng Pilipinas

Necessity-regardless of their nature Non-necessity

-should regulate all online lending companies -Regulation of non-depository beyond the duty of BSP
-BSP regulation violates the laws.
1. SEC is incompetent in affiliating online companies -Violate equal protection clause
-should be given to the BSP -status quo is already sufficient
-not properly appropriated by the SEC
-clients are the poor of the poorest
-necessary; come up a standardize and uniform in all
companies
-regulation is not tantamount to demonizing or giving
unfair treatment
-all lending corporation whether online or not must
properly regulate by uniform standard

2. Lending companies should be regulated by BSP in

order to protect the welfare of the poor and stabilize
the standard of lending regulation

Beneficiality
-lack of attention of SEC and mechanism to curtail
online lending practices there is a need which is the
BSP to come up mechanism to have a uniform
standard in regulating the online practices.
-amend the law in order to pass the burden to the BSP
because they have the higher mandate.
-not same in nature, how come? Elementary in the
law that they have the same nature and interest.
Different manner but the same effects.
1. Impose uniform standard regardless of their nature.
-To protect the poor
Must be protected by the Government
-SEC is incompetent.
Practicability
-There must be an amendment in order not to
contradict to the existing one
-Through the proper regulation by BSP, eliminate the
inequalities
-In order to fight the inequalities, allow the BSP to
regulate and transfer the regulatory power to the BSP
-Online lending opt to close, people who will lend
money and will transfer to banks.
1. BSP give mandates to regulate banks.
Non-beneficiality
-BSP would cast undue favor to those who are not quasi-
banking
-Limit their financial mobility
-State is obligated to take care the welfare of the people
-Lending business will be force to be close
Non-practicability
-Mere amendment of BSP is not sufficient because many laws
will be amended also.
-complaints arise from those who are not registered to SEC.
-3,0000 lending companies that are already existing.
-Central Bank act stipulates that maintain price stability and
economy
-It will be hard for the poor people to be regulated by bank
because of striker compliance.