IRS issues must-have COBRA guidelines – Employment and HR

To print this article, simply register or connect to Mondaq.com. On May 18, 2021, the IRS provided much-needed advice to employers on how to implement the COBRA premium subsidy provisions under the American Rescue Plan Act (ARPA). Notice 2021-31 includes over seven dozen questions and answers, which cover topics such …

Read More »

Broadband is imperative for everyone

“The Broadband Imperative” was a well-attended and aptly named session at this week’s NASCIO Midyear event, providing even more evidence of the growing importance of connectivity for all highlighted last year. Data from the NASCIO survey also supports this claim: Its registration in 2021 with state information officials revealed a …

Read More »

Bank credit fell 5% in April

Bank credit fell 5% in April
BW FILE PHOTO

LOAN by the big banks in April contracted by its fastest pace since 2004, reflthe impact of tighter lockdowns on lenders and borrowers.

Large banks’ outstanding loans fell 5% to 8.998 billion pesos in April from 9.474 billion pesos a year ago, based on preliminary data released by the Bangko Sentral ng Pilipinas (BSP) Monday.

The decline in bank loans in April was faster than the 4.5% drop in March, and the fifth consecutive month of decline.

Before April, the largest contraction in lending was observed in May 2004, when bank lending fell 4.6%.

Including reverse repurchase agreements, outstanding loans granted by major banks fell 2.9% in April after falling 4.3% a month earlier. Check more in Payday website.

“Bank lending has remained weak as measures to contain the resurgence of COVID-19 (2019 coronavirus disease) cases limited domestic economic activity and continued to dampen market sentiment,” the bank said. central in a press release.

Metro Manila and the adjacent provinces Bulacan, Cavite, Laguna and Rizal were placed under tighter lockdown from late March to April due to a spike in coronavirus infections.

Bank loans are expected to continue to decline as the coming months, as some lockdown restrictions remain in place, Rizal Commercial Banking Corp’s chief economist said. Michael L. Ricafort.

“This would lead to a significant reduction in economic / business activities which could also lead to lower demand for bank loans / credits in response to the reduction in business conditions,” he said in a text message.

Loans to productive activities fell 3.9%, faster than the 3.2% contraction in March. This, while loans to key industries such as wholesale and retail trade and repair of motor vehicles and motorcycles (-10.2%), manufacturing (-9.8%), and financial and business activities insurance (-6.8%) fell during the month.

On the other hand, bank loans to certain sectors increased, in particular those intended for professional, scientific and technical activities (106.9%), real estate activities (2.4%) and human health and social work activities (8 , 5%).

Consumer loans also fell 10.2% in April, more than the 9.9% drop recorded in March. Auto loans (-12.9%) experienced the largest decline, followed by credit cards (-9.6%) and interest-bearing loans (-1%).

Mr Ricafort said the Strategic Transfer of Financial Institutions (FIST) law could help improve banks’ appetite for more credit in the coming months.

“The FIST law would be an option available to banks to offload / sell some of their (bad debt) and other non-performing assets from their balance sheets, thus freeing up more funds and helping to increase their lending activities,” he said. -he declares.

Banks have been risk-averse to guard against a further build-up of bad loans. In March, the industry’s non-performing loan (NPL) ratio stood at 4.21%.

SLOWING LIQUIDITY GROWTH
Meanwhile, money supply growth slowed in April. M3 – the broadest measure of circulating liquidity in an economy – rose 5.1%, following growth of 8.3% in March, the central bank said in a separate statement.

“This largely reflects the slowdown in demand for loans,” Ricafort said.

Domestic claims in April rose 1.8%, much slower than the 5.6% in March. Net claims on the central government also slowed to a growth of 23.6% from 47.4% in March.

Meanwhile, net foreign assets grew slightly faster by 18.3 percent from 18.1 percent in the previous month, supported by the rise in the country’s gross international reserves.

“Going forward, the BSP will remain vigilant to ensure that the overall stance of monetary policy is in line with the BSP’s price and financial stability objectives, while continuing to maintain political support for the efforts of the national government to fight againstffthe effects of the COVID-19 health crisis, ”the central bank said. – LWTNoble

Source link

Read more

Five fundamental principles of financial recovery

The COVID-19 public health crisis has triggered a financial crisis for many individuals and families. Whether their pain was caused by time off, layoffs or pay cuts, people have been held back from meeting their monthly obligations and progressing towards their long-term financial goals. Now that vaccines are helping the …

Read More »

County care urged to use relief funds

The Pulaski County government will determine in the coming weeks how millions of federal funds will be distributed. Pulaski County received just over $ 76.1 million in federal covid-19 aid funds from the American Rescue Plan. At Tuesday’s Pulaski County Quorum Court meeting, justices of the peace refused to suspend …

Read More »