Law Summary
Minimum Paid-In Capital for Existing Thrift Banks
- Existing thrift banks with head offices located in Metro Manila must maintain a minimum paid-in capital of ₱20 million.
- Existing thrift banks with head offices located outside Metro Manila must maintain a minimum paid-in capital of ₱10 million.
- Those existing TBs that do not meet these minimums as of September 13, 1990, are required to submit a capitalization increase plan.
- The plan must be submitted within six months from the date of the resolution (September 13, 1990).
- The capitalization increase should be accomplished within two years following the submission of the plan.
Minimum Paid-In Capital for New Thrift Banks
- Thrift banks established after September 13, 1990, must have higher minimum paid-in capital requirements.
- A new TB with a head office in Metro Manila must have a minimum paid-in capital of ₱100 million.
- A new TB with a head office outside Metro Manila must have a minimum paid-in capital of ₱20 million.
Implementation and Effectivity
- The Circular took effect immediately upon issuance on September 27, 1990.
- Compliance with these requirements is mandatory and overseen by the Monetary Board.
Legal Authority and Enforcement
- The provisions were approved by the Monetary Board through Resolution No. 964 dated September 13, 1990.
- This regulatory measure aims to strengthen the financial stability and capitalization of thrift banks in the Philippines.