Categorization and Required Minimum Capitalization
- Universal Banks (UBs): P4.95 billion
- Commercial Banks (KBs): P2.40 billion
- Thrift Banks (TBs) varying by location:
- Metro Manila: P1 billion
- Cities of Cebu and Davao: P500 million
- Other areas: P250 million
- Rural Banks (RBs) by location:
- Metro Manila: P100 million
- Cities of Cebu and Davao: P50 million
- All other cities: P25 million
- 1st to 4th class municipalities: P10 million
- 5th to 6th class municipalities: P5 million
- Cooperative Banks (Coop Banks): P10 million
Minimum Capital Requirements for Special Banking Authorities
- Higher minimum capitalization applies either the general minimum capital or the amount specified for granting special banking authorities, whichever is higher.
- Special banking authorities include:
- Quasi-banking functions (for TBs)
- Trust and fiduciary business (for U/KBs and TBs)
- Limited trust (TBs and RBs/Coop Banks)
- Foreign currency deposit units (FCDU/EFCDU)
- Issuance of foreign letters of credit (TBs)
- Acceptance of demand deposit and NOW accounts (TBs and RBs/Coop Banks)
- Acting as third-party securities custodian/registry
Transitory Provisions
- Approved but not yet operating RBs and pending or complete applications for new RB establishments, conversions to RB, or grant of special banking authorities as of 21 November 2010 are exempt from the new RB minimum capital requirements.
- Similarly, approved but not yet operating TBs and pending or complete applications for TB-related activities as of the circular's effectivity date are exempt from the new TB minimum capital requirements.
Prerequisites for Grant of Authority to Establish Branches
- Branch establishments require Monetary Board's prior approval.
- Theoretical capital is assigned per branch depending on bank category and location of the head office:
- For UBs/KBs:
- Metro Manila: P100 million
- Cebu and Davao: P50 million
- Other cities: P25 million
- 1st to 4th class municipalities: P20 million
- 5th to 6th class municipalities: P15 million
- For TBs:
- Metro Manila: P25 million
- Cebu and Davao: P15 million
- Other cities: P10 million
- 1st to 4th class municipalities: P5 million
- 5th to 6th class municipalities: P2.5 million
- For RBs/Coop Banks:
- Metro Manila: P10 million
- Cebu and Davao: P5 million
- Other cities: P2.5 million
- 1st to 4th class municipalities: P1 million
- 5th to 6th class municipalities: P0.5 million
- For UBs/KBs:
Effectivity
- The circular becomes effective fifteen (15) calendar days after publication in the Official Gazette or a newspaper of general circulation.
Monetary Board Authority
- Issued by Monetary Board under Resolution No. 246 dated 17 February 2011
- Signed and enforced by Officer-in-Charge Juan De Zuaiga, Jr.