QuestionsQuestions (BSP CIRCULAR NO. 1294)
It sets the capital requirements and capital build-up programs for rural banks and cooperative banks, including minimum paid-in capital and conditions for capital stock transfers that affect majority ownership/control.
Existing rural banks were required to raise their private capitalization to P1 million in four (4) equal semi-annual installments starting January 1, 1992.
It is the start date of the four (4) equal semi-annual installments for the capital build-up program for existing rural banks (and also for cooperative rural banks with insufficient capital).
If the sale or transfer of capital stock in the NCR or in Cebu and Davao will result in a change in majority ownership or control of voting stocks from one group to another, the bank must immediately comply with the higher prescribed minimum capital requirement for new rural banks in those places before approval.
P20 million minimum private paid-in capital for new rural banks in the National Capital Region (NCR).
P10 million minimum private paid-in capital for new rural banks in the cities of Cebu and Davao.
P2 million minimum private paid-in capital, except in the NCR and in the cities of Cebu and Davao.
It increases to P20 million for the NCR and P10 million for Cebu and Davao, instead of the standard P2 million elsewhere.
P1.25 million as the minimum paid-in capital for local cooperative banks.
They must raise their private capitalization to P1.25 million in four (4) equal semi-annual installments starting January 1, 1992.
Resolution No. 715 dated June 28, 1991.
Four (4) equal semi-annual installments.
It refers to a shift of voting control from one group of persons to another group as a result of the contemplated sale/transfer(s) of the bank’s capital stock.
Only when the sale or transfer (or series of sales/transfers) in NCR, Cebu, or Davao results in a change in majority ownership or control of the voting stocks from one group to another.
No. Both are required to raise capital to the prescribed amounts in four (4) equal semi-annual installments starting January 1, 1992.
Existing rural banks: P1 million. Cooperative rural banks with contribution less than P1.25 million: must raise to P1.25 million.