Bangko Sentral Tells Filipinos To Save Money in Banks, Loan Associations
BANGKO SENTRAL – The Central Bank of the Philippines is urging the Filipinos to deposit their savings instead of saving money at home.
A lot of people invest their money in businesses and investment products but they still take even just a small part for “savings”. Other individuals fear the risk of getting into a business or investing so they would rather choose to save their money.
However, while saving money is good and really advisable especially amid the unstable situations now, Bangko Sentral ng Pilipinas (BSP) advises Filip[inos to deposit their money instead of keeping them at home. Based on a report on ABS-CBN News, the Central Bank stressed that keeping money at home affects the circulation of banknotes and coins.
According to the report, BSP said in a statement that keeping money in barrels, jars, cabinet hampers, and plastic containers affects the efficient circulation of the currency and may cause an artificial shortage. When it happens, the Central Bank is forced to produce more banknotes and coins and the production may be an additional cost.
Bangko Sentral Governor Benjamin Diokno stressed that fewer productions of coins may result in reduced costs on the part of the Central Bank thus it can remit more dividends to the government that can help fund the fight against the COVID-19 pandemic and the social services.
BSP advises Filipinos to keep their money or savings in banks, cooperatives, e-money issuers, or loan associations instead of keeping them at home. Aside from not affecting the circulation of the currency in the country and helping the central bank save funds, the money may earn interest over time when kept in the bank or other financial institutions. BSP assured that the savings kept in formal accounts are protected by its regulations and insured by the Philippine Deposit Insurance Corporation.
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