108 OG No. 3, 306 (January 16, 2012)
SUBJECT: | PHASED LIFTING OF BRANCHING RESTRICTION IN THE EIGHT (8) "RESTRICTED AREAS" OF METRO MANILA |
a. | Minimum qualifications. The applicant bank shall comply with the following minimum qualification requirements: | ||||||||
1) | The bank must have combined capital accounts of at least P 10 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 P 10 billion or a TB with combined capital accounts of less than P 3 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 | ||||||||
2) | Neither the bank nor any of its subsidiary banks is under Prompt Corrective Action (PCA) or if under PCA, it shall be compliant with PC/V 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. | ||||||||
b. | 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. | ||||||||
c. | 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. | |||||||||
d. | 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 applicants 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. | |||||||||
e. | 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: | ||||||||
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f. | 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 Subsec. X151.2 and X151.3 of the MORB not inconsistent with these guidelines. | ||||||||
g. | 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. | ||||||||
Failure to open a branch within the period authorized by the Monetary Board may result in forfeiture of the branch licensing fee and the right to open such branch. |
Provided, That:
(In millions)
Location of Branch
Date of Implementation
UBs/KBs
TBsRBs/
Coop BanksMetro Manila Up to 30 June 2012
From 1 July 2012 to 30 June 2013
From 1 July 2013 to 30 June 2014
From 1 July 2014P 50.0
65.0
80.0
100.0P 15.0
18.0
21.0
25.0P 5.0
6.5
8.0
10.0Cities of Cebu and Davao From 18 January 2006 50.0 15.0 5.0 lst to 3rd class cities Up to 30 June 2012
From 1 July 2012 to 30 June 2013
From 1 July 2013 to 30 June 2014
From 1 July 201425.0
25.0
25.0
25.05.0
6.5
8.0
10.02.5
2.5
2.5
2.54th to 6th class cities Up to 30 June 2012
From 1 July 2012 to 30 June 2013
From 1 July 2013 to 30 June 2014
From 1 July 201425.0
25.0
25.0
25.05.0
6.5
8.0
10.01.5
1.8
2.1
2.51st to 3rd class municipalities From 18 January 2006 20.0 5.0 1.0 4th class municipalities Up to 30 June 2012
From 1 July 2012 to 30 June 2013
From 1 July 2013 to 30 June 2014
From 1 July 201415.0
16.5
18.0
20.02.5
3.3
4.1
5.00.5
0.65
0.8
1.05th to 6th class municipalities From 18 January 2006 15.0 2.5 0.5
CERTIFIED
"The assigned theoretical capital for the proposed branch/es shall be deducted from the applicant's 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 existing 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]SEC. 6. Incentive for Branching in Lower Class Municipalities.—U/KBs and TBs that will establish branches in 3rd to 6th class municipalities shall be charged a lower branch processing fee. Subsec. X151.5 of the MORB is hereby amended as follows:
Provided, That branches of TBs , RBs and Coop Banks to be established within the region where the head office is located shall be free from assessment."
Bank Category Branch Processing Fees Metro Manila, Cities of Cebu and Davao, All Other Cities, 1st to 2nd Class Municipalities 3rd to 6th Class Municipalitiesa.UBs/KBs/AffiliatedTBs P 200,000 P 100,000b. Non-affiliated TBs 100,000 50,000c. RBs/Coop Banks 25,000 25,000d. Microfinance-oriented banks or microfinance-oriented branches igvof banks 5,000 5,000
"Subsec. X151.4 Branching guidelines.— Branches may be established, subject to the following guidelines:SEC. 8. Effectivity.—This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or any newspaper of general circulation.
"a. ***
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"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."