Philippines central bank tightens rules on credit

PHILIPPINES - The Bangko Sentral ng Pilipinas is set to issue this week a circular restraining banks and credit card companies from issuing pre-approved "plastic money" and requiring them to adopt a stricter system of screening credit card applications.

The circular, a BSP official said, would also peg credit limits of cardholders at levels based on their "take home pay or net receipts."

The official said these measures, which were already approved last week by the Monetary Board of the BSP, we