(NAR) VOL. 22 NO. 3, JULY - SEPTEMBER 2011
- Minimum qualifications. The applicant bank shall comply with the following minimum qualification requirements:
- The bank must have combined capital accounts of at least P10 billion for a U/KB and at least P3 billion for a TB: Provided, That a U/KB with combined capital accounts of less than P10 billion or a TB with combined capital accounts of less than P3 billion shall be allowed to execute an undertaking to build up capital for a maximum period not later than 30 June 2014: Provided, further, That approved branches shall not be allowed to be opened until the capital requirement is met; and
- Neither the bank nor any of its subsidiary banks is under Prompt Corrective Action (PCA) or if under PCA, it shalf be compliant with PCA resolution guidelines: Provided, That approved branches shall not be allowed to be opened until the PCA status is lifted: Provided, further, That the approved branching shall be suspended should PCA be initiated on an applicant bank or any of its subsidiary banks.
- Number of branches that may be established. Qualified banks may apply to establish as many branches in the "restricted areas" as their qualifying capital can support within Phase 1 period consistent with the theoretical capital requirement computed in accordance with the provisions of Subsec. X151,2.f of the MORB, notwithstanding the provision of Subsec. X151.4.a of the MORB on the maximum number of branch applications that may be submitted at any time.
- Application period. Qualified banks shall submit their application for establishment of branches in the "restricted areas" under Phase 1 within ninety (90) calendar days from the effectivity date of this Circular.
Only branch applications of banks that meet the minimum qualification requirements shall be given due course.- Maximum number of branches. The maximum number of branches that may be established by qualified banks in the "restricted areas" under Phase 1 shall be subject to final adjustment by the Monetary Board based on the total number of applications received.
Should the total number of branch applications received by the BSP under Item "c" above exceed the total number determined by the Monetary Board to be optimal over the Phase 1 period, each qualifying applicant bank shall be granted a pro-rata share based on the total number of branches applied for.
Accepted applications shall be charged corresponding special licensing fee per Item "e" below.
The BSP shall post on its website, within a reasonable time from the 90 calendar day period in Item "c" above, the list of applicant banks, the number of branch applications received from each applicant bank, and the final number of branch applications granted to each applicant bank under Phase 1.- Licensing fee. The applicant bank shall upon acceptance of branch application pay a special licensing fee per branch depending on the bank's category, as follows:
Bank Category Licensing Fee Per Branch U/KB P20 million TB 15 million- Other conditions. In addition to payment of special licensing fee, the applicant bank shall be subject to the other usual prerequisites and procedures for the grant of authority to establish a branch under Subsecs. X151.2 and X151.3 of the MORB not inconsistent with these guidelines.
- Opening of branches. The approved branches shall be opened on or before 30 June 2014. Reasonable extensions may be authorized by the Monetary Board on a case-to-case basis provided there are meritorious grounds.
"Subsec. X151.2 Prerequisites for the grant of authority to establish a branch. With prior approval of the Monetary Board, banks may establish branches subject to the following pre-qualification requirements:
"x x x
- "f. For purposes of evaluating branch applications and determining the number of additional branches a bank may establish, theoretical capital shall be assigned to each branch to be established, including approved but unopened branches, as follows:
(In millions) Location of Branch Date of ImplementationUBs/KBs
TBs RBs/ Coop BanksMetro Manila Up to 30 June 2012 P50.0 P15.0 P5.0 From 1 July 2012 to 30 June 2013 65.0 18.0 6.5 From 1 July 2013 to 30 June 80.0
21.0 8.0 2014 From 1 July 2014
100.0 25.0 10.0 Cities of Cebu and Davao From 18 January 2006 50.0
15.0 5.0 1st to 3rd class cities Up to 30 June 2012 25.0 5.0 2.5 From 1 July 2012 to 30 June 2013
25.0 6.5 2.5 From 1 July 2013 to 30 June 2013
From 1 July 2014 4th to 6th class cities Up to 30 June 2012 25.0
5.0 1.5 From 1 July 2012 to 30 June 2013
25.0 8.0 1.8 From 1 July 2013 to 30 June 2014 25.0 10.0 2.5 From 1 July 2014 25.0 10.0 2.5 1st to 3rd class municipalities From 18 January 2006 20.0 5.0 1.0 4th class municipalities Up to 30 June 2012 15.0 2.5 0.5 From 1 July 2012 to 30 June 2013 16.5 3.3 0.65 From 1 July 2013 to 30 June 2014 18.0 4.1 0.8 From 1 July 2014 20.0 5.0 1.0 5th to 6th class municipalities From 18. January 2006. 15.0 2.5 0.5
Provided, That:
- Applications received and approved up to 30 June 2012 shall be assessed he amount of theoretical capital applicable on the effectivity date of this Circular subject to subsequent reassessments using the increased amount of theoretical capital effective (i) 1 July 2012, (ii) 1 July 2013, and (iii) 1 July 2014 respectively;
- Applications received and approved from July 2012 to 30 June 20 3 shall be assessed the amount of theoretical capital effective 1 July 2012, subject to subsequent reassessments using the increased amount of theoretical capital effective (i) 1 July 2013, and (ii) 1 July 2014, respectively;
- Applications received and approved from 1 July 2013 to 30 June 2014 shall be assessed the amount of theoretical capital effective 1 July 2013, subject to subsequent reassessment using the increased amount of theoretical capital effective 1 July 2014; and
- Applications received and approved starting 1 July 2014 shall be assessed using the increased amount of theoretical capital effective said date.
"The assigned theoretical capital for the proposed branch/es shall be deducted from the applicant bank's existing qualifying capital as defined under Subsec. X116.2, solely for the purpose of determining whether its qualifying capital can support the establishment of the additional branch/es. The applicant bank's notional risk-based CAR, after deducting the applicable theoretical capital for the proposed branch/es from the exist-ng qualifying capital, shall not be less than the minimum requirement at the time of approval, provided also that at the time of opening of such branch/es the notional CAR remains compliant with the minimum requirement.1
XXX
Bank CategoryBranch Processing Fees
Metro Manila, Cities of Cebu and Davao, All Other Cities, 1st to 2nd Class Municipalities 3rd to 6th Class Municipalitiesa. UBs/KBs/Affiliated TBs P200.000 P100,000b. Non-affiliated TBs 100,000 50,000c RBs/Coop Banks 25,000 25,000d Mcrofinance-oriented banks or rricrofinance-oriented branches of banks
5,000 5,000
"Subsec. X151.4 Branching guidelines. Branches may be established, subject to the following guidelines:
"a. xxx
" x x x
"e. The Monetary Board may decide to disapprove an otherwise qualified branch application if in its determination such branch application will lead to an overbanking situation in the specific market."