Bank Capitalization Requirements BSP Circular 1296

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BSP CIRCULAR NO. 1296: Bank Capitalization Requirements BSP Circular 1296

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Title Source: Supreme Court: Bank Capitalization Requirements BSP Circular 1296

Law: Bsp Circular No. 1296

Decision Date: Jul 16, 1991

The Monetary Board mandates that all commercial banks maintain a minimum capital of P750 million, while expanded commercial banks must have at least P1.5 billion, with provisions for those not meeting these requirements to submit a capitalization plan within three months.

Minimum Capital Requirements for Expanded Commercial Banks

All expanded commercial banks, including existing and newly-established, must have a minimum capital of P1.5 billion.

Compliance and Capital Increase Plan

Banks not meeting the capital requirements are required to submit a plan within three (3) months from the policy approval date.
The plan must outline measures to increase capitalization within one (1) year.

Periodic Review of Capital Adequacy

The Central Bank of the Philippines will periodically assess the need for additional capital by all banks.
This review aims to ensure banks' stability and ability to serve public needs effectively.

Immediate Effectivity

The circular is effective immediately upon adoption on July 16, 1991.

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