Faster with FIST: Spurring economic recovery in the pandemic through the FIST Act

Several sectors of the Philippine economy are still grappling with the effects of the coronavirus disease 2019 (Covid-19) pandemic. While e-commerce providers continue to gain ground during the new normal because of the nature of their services, other industries like travel and retail are still addressing challenges following the onset of the global health contagion.

Banks and financial institutions are likewise facing difficult times since the pandemic hit. The year 2020 has introduced a significant spike in non-performing loans (NPLs) in banks across the country, loans that are past due for 90 days or more. Data from the Bangko Sentral ng Pilipinas (BSP) show that there was a 74.77 percent climb in the number of NPLs by the end of December 2020 at P391.65 billion, compared to the P224.10 billion declared by the BSP during the same period in 2019. Clearly, this is due to the current Covid-19 health crisis, which has compelled banks to restrict operations and has pushed businesses to neglect their liabilities because of minimal to lack of revenues coupled by mounting expenses despite slow business activity due to health and safety protocols.