Question & AnswerQ&A (BSP CIRCULAR NO. 459)
A thrift bank must have a net worth or combined capital of at least P650 million computed in accordance with Section X 106.
No, no bank shall engage in quasi-banking functions without authority from the BSP, except banks authorized by the BSP to perform universal or commercial banking functions which automatically have the authority to engage in quasi-banking functions.
The authority to obtain funds from the public (20 or more persons) is not a condition but an authorization for the bank or quasi-bank once the Monetary Board has granted the quasi-banking license.
The thrift bank must have a risk-based capital adequacy ratio of not lower than twelve percent (12%).
The bank or NBFI must have elected at least two (2) independent directors, and all directors must have attended the required seminar for directors conducted or accredited by the BSP.
They must have established a comprehensive risk management system appropriate to their operations with clear responsibility delineation, adequate risk measurement, appropriate risk limits, effective internal controls, and timely risk reporting systems.
The bank must have a CAMELS Composite Rating of at least '3' with a management rating not lower than '3'.
NBFIs must be duly incorporated stock corporations, comply with minimum adjusted capital accounts of at least P650 million, comply with applicable laws and regulations, maintain proper accounting and internal controls, have no significant float items or past due obligations, have qualified officers with experience in quasi-banking, have elected independent directors and attended required seminars, have no unsafe practices in the last six months, and have a comprehensive risk management system.
The applicant must file an application signed by the president or equivalent officer with the BSP supervising department accompanied by a board resolution, certification of compliance, information sheet, bio-data of managerial staff, and a one-year borrowing-investment program detailing portfolio distribution and expected funding sources.
They are given two years from the date of the circular to comply with the minimum capital requirements or submit an approved capital build-up program for up to five years. Failure to comply or submit will require liquidation of quasi-banking operations within one year and consider their license revoked or cancelled.