Watch set on crowdfunding, P2P lending

THE Bango Sentral ng Pilipinas (BSP) is keeping an eye on activities such crowdfunding and peer-to-peer (P2P) lending and could issue regulations governing such if needed.

“The BSP is constantly surveying players. We are currently monitoring industry developments on crowdfunding and peer-to-peer lending,” central bank Governor Nestor Espenilla Jr. said.

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Internet developments in particular have led to the rise of crowd- funding, where entrepreneurs raise capital via contributions by many people, with attention generated via social media networks or dedicated websites.

Increased online activities have also boosted P2P lending, a method companies borrow and lend money institution as an intermediary.

Espenilla said that while crowdfunding, for instance, had the po new businesses and micro, small and medium enterprises, there was also heightened risk of investor and consumer abuse.

“Given the cross-cutting concerns, we have shared our crowdfunding research with other regulators through our FSF,” he noted, referring to the inter-agency Financial Sector Forum composed of the BSP, Insurance Commission, Philippine Deposit Insurance Corp. and the Securities and Exchange Commission.

Since the crowdfunding industry is still nascent in the Philippines, Espenilla said it may be not yet be the time to issue regulations.

“But we continue to monitor the take regulatory action when the time comes when necessary,” he said.