Conditions on Sale or Transfer of Capital Stocks
- For rural banks located in the National Capital Region (NCR) or the cities of Cebu and Davao, any sale or transfer of capital stock causing a change in majority ownership or control must comply with prescribed minimum capital requirements prior to approval.
- The minimum capital requirement for such rural banks is PHP 20 million in NCR and PHP 10 million in Cebu and Davao.
- This condition ensures stability and financial soundness upon ownership changes.
Capital Requirements for New Rural Banks
- New rural banks established outside NCR, Cebu, and Davao must have a minimum private paid-in capital of PHP 2 million.
- There are higher capital requirements for rural banks in NCR, Cebu, and Davao as specified under conditions on sale or transfer.
Capital Requirements for Local Cooperative Banks
- Local cooperative banks may be established with a minimum paid-in capital of PHP 1.25 million, as prescribed by the Cooperative Code of the Philippines.
Capital Build-Up Program for Existing Cooperative Rural Banks
- Cooperative rural banks with private paid-in capital less than PHP 1.25 million must increase their capitalization to PHP 1.25 million.
- This increase is to be implemented in four equal semi-annual installments starting January 1, 1992.
- The requirement aligns with the Cooperative Code of the Philippines and aims to strengthen cooperative bank capitalization.