QuestionsQuestions (BSP CIRCULAR NO. 42)
It amends Subsection 2151.3(4) of the Manual of Regulations for Banks and Other Financial Intermediaries (Book II) to reduce the required equivalent capital that a thrift bank must put up for each branch to be established.
It amends (repeals/amends) Subsection 2151.3(4) of the Manual of Regulations for Banks and Other Financial Intermediaries (Book II).
Monetary Board Resolution No. 797 dated August 17, 1994.
Php 10 million per branch.
Php 5 million per branch.
Php 3 million per branch.
None (no additional capital required).
When its capital is lower than the sum computed as: (1) Php 10 million × number of existing branches in NCR and Cebu/Davao; (2) Php 5 million × number of existing branches in other cities and first class municipalities; and (3) Php 3 million × number of existing branches in second–fourth class municipalities.
It must increase its capital at least to the sum of the amounts computed using the branch locations/categories (i.e., equal to Items (1), (2), and (3) above).
When its capital is greater than the sum of the amounts in items a(1), a(2), and a(3); and the excess is greater than Php 10 million, Php 5 million, or Php 3 million, depending on the proposed site of the additional branch.
The bank must put up only an amount sufficient to cover the deficiency needed to reach the applicable threshold (Php 10 million, Php 5 million, or Php 3 million depending on location).
It allows the bank to avoid additional per-branch capital requirements only if the excess exceeds the applicable threshold for the new branch site; otherwise, it requires capital to cover the deficiency.
The computation depends on the number of existing and proposed additional branches and their location category (NCR/Cebu/Davao, other cities/1st class municipalities, and 2nd–4th class municipalities).
No. The circular states 'N o n e' for additional capital for fifth and sixth class municipalities.
Immediately, as stated at the end of the circular.
It refers to the capital that the thrift bank must maintain/allocate as required by regulation when establishing branches, expressed in prescribed amounts by location category (as amended by the circular).