Question & AnswerQ&A (BSP CIRCULAR NO. 674, S. OF 2009)
The circular amends certain subsections and Appendix 5A of the Manual of Regulations for Banks (MORB) regarding the pre-qualification requirements for the grant of banking authorities.
Banks must be members in good standing of the PDIC, meaning they have neither unpaid assessments due nor past due obligations with the PDIC.
Operations including establishment of branches/banking offices, acceptance or creation of demand deposits, Acceptance of NOW accounts, Issuance of Negotiable Certificates of Time Deposit (NTCD), Acceptance of Government Deposits, Issuance of Long Term Certificates of Time Deposits (LTNCTD), Trust and other fiduciary businesses, and operation of Foreign Currency Deposit Units are affected.
The circular takes effect fifteen (15) days after its publication in the Official Gazette or a newspaper of general circulation.
There should be no outstanding major supervisory concerns on safety and soundness from the last examination, including no non-payment of assessment dues and/or past due obligations with the PDIC.
Being in good standing means the bank has no unpaid assessments due, no past due obligations with the PDIC, and is eligible to be granted or maintain banking authorities as specified in the MORB.
Subsection x151.2, item e(12) specifies the requirement regarding PDIC membership for establishing branches or banking offices.
Thrift banks and rural banks engaging in limited trust business must be members of the PDIC in good standing according to the amended subsections.
Banks with unpaid assessment dues or past due obligations with the PDIC will not meet the pre-qualification requirements to be granted banking authorities as per the amendments.
The Circular was signed by Amando M. Tetangco, Jr., Governor of the Bangko Sentral ng Pilipinas, for the Monetary Board.