Additional Guidelines on the Grant of Licenses/Authorities and Types of Licenses of Permissible Activities

Banoxo SerurReL Ne PrLrPrNAs OFFICE OF THE GOVERNOR crRcurAR No.1031 Series of 2019 Subject: Additional Guidelines on the Grant of Licenses/Authorities and Types of Licenses of Permissible Activities The Monetary Board, in its Resolution No. 56 dated 10 January 2019 approved the: (i) classification of existing licenses being granted by the Bangko Sentral in accordance with the types of licenses provided under Subsection X1101.1 of the Manual of Regulations for Banks (MORB) and Subsections 41101Q.1/45015.1/450IP.t/ 4LLON.I/420IT.1. of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI); and (ii) corresponding amendments to the licensing requirements of the Bangko Sentral. Section 1. The type of license attached to permissible activities of Bangko Sentral supervised financial institutions (BSFI) is presented under Section XLilO} of the MORB, which shall read as follows : Section X1102. Type of License of Permissible Activities. The type of license attached to permissible activities of Bangko Sentral supervised financial institutions (BSFls) shall be as follows: Related Type of Permissible Activity Sections/Subsections of the License MORB A Establishment/Sale of x151.3 Branches/Branch-lite Unitsl X151.10(c) Equity Investment in Allied and Non- x376 Allied Undertaking x377 x378 x380 x383 1381 Appendix 79 lnvestments in Subsidiaries and x382 Affiliates Abroad Appendix 79 Trust and Other Fiduciary Business x404 2404 3404 B Conversion to a Lower Bank Category xroz.4 Amendment of Articles of x103 Incorporation (AOl) and By-Laws 1 Includes conversion of branch-lite unit/s to branch/es A. MabiniSt., Malate 1004 Manila, Philippines o (632) 7O8-770I o www.bsp.gov.ph

Related Type of Permissible Activity Sections/Subsections of the License MORB Relocation of Head Offices x152 c Conversion of Microfinance-oriented x102.5 Thrift Banks and Rural Banks Declaration and Payment of Cash x136 and/or Stock Dividends Appendix 114 Relocation of Approved but Unopened xLsL.7 Branches/Branch-lite Units Relocation of Branches/Branch-lite x151.9 Units Temporary Closure of X151.10(a) Branches/Branch-lite Units Permanent Closure and Surrender of xLsL.10(b) Branch/Branch-lite Unit License Outsourcing/lnsourcing of Banking x161_ Functions xL62 Appendix 100 Servicing Deposits Outside Bank x2L3 Premises lssuance of Bonds and Commercial x239 Paper Investment in Readily Marketable x388.5 Bonds and Other Securities Amendment of the Plan Rules of UITF x410.6 The permissible activities indicated in the table below shall have Type A license on initial application. Subsequent applications for expansion of the range of activities/services related to the initial license granted shall be classified as Type C licenses subject to the conditions set out in the related Sections/Subsections of the MORB: Related Banking Activity Sections/Subsections of the MORB Bank Offices as Outlet of Financial Products of Allied xt72 Undertakings/lnvestment Houses (Cross-selling Activities) Marketing, Sale and Servicing of Microinsurance Products 2L72 3r72 2367.8 3361.8 Page 2 ot 27

Section 2. The type of license attached to permissible activities of BSFIs is hereby added as Sections 4ILO2Q{4502S|45O2P/4LLLN/4202T of the MORNBFI, which shall read as follows: Section 4LLO2Q/45O2S|45O2P I 4ttlNl42O2T. Type of License of Permissible Activities. The type of license attached to permissible activities of Bangko Sentral supervised financial institutions (BSFls) shall be as follows: Related Type of License Sections/Su bsections of Permissible Activity thE MORNBFI A Establishment of Branches and Other 4151Q Office Appendix Q-2 Trust and Other Fiduciary Business 4404Q 4101N 44027 Appendix Q-39 B Amendment of Articles of 4104Q Incorporation (AOl) and By-Laws 4103T.1 4101S.2 Outsourcing/lnsourcing of Banking 4L62Q Functions 4405Q.9 4701Q.13 4190S 4L6LP 4190N Appendix Q-37 lssuance of Bonds and Commercial 4239Q Paper Amendment of the Plan Rules of UITF 4410Q.6 Section 3. Subsection X1101.2 of the MORB provides the prudential criteria in determining the eligibility of BSFIs for the licenses/authorities being applied for. In this respect, Sections 2404/3404 and Subsections X151.3/X151.5/X15L.L0/X376.L/ X375.5/X382.L/X382.3/X4O4.L/X4O4.2/X4O4.4 of the MORB are hereby amended to applythe prudential criteria set out under Subsection X1101.2 and to amend the licensing req uirements as follows: Permissible Activities with Tvpe A License A. Establishment of Branches/Branch-lite Units Subsection X151.3 Application for authority to establish a branch/branch-lite unit. Banks seeking to establish branch or branch-lite unit shall submit the following documents to the appropriate supervising department of the Bangko Sentral:

a. Application letter signed by the president or officer of equivalent rank of the bank which shall indicate the number of branch/es or branch-lite unit/s to be established and their proposed location/s. In this respect, application for the establishment of branch-lite unit/s shall include the range of activities that will be performed and services that will be offered by the branch-lite unit to a specifically defined market or sector; b. Xxx c. Certification signed by the president or officer of equivalent rank and the chief compliance officer that the bank is compliant with the pre-requisites for the grant of authority to establish branch/es or branch-lite units provided under Subsec. X75L.2. The foregoing regulations shall also apply to bank's application to convert a branch-lite unit into a branch. Subsec. X151.5 Processing fees. Upon filing of an application for establishment of branches/branch-lite unit/s, the bank shall pay the total processing fee computed for all branches/branch-lite units applied for in accordance with the following: Processing Fee Per Branch/Branch-lite Unit Metro Manila, cities of Cebu Banking Unit and and Davao, All Other Bank Category 3rd to 6th Class Municipalities Cities, 1st to 2nd Class Municipalities Xxx Xxx Xxx Provided, That branches/branch-lite units to be established in unbanked cities and municipalities shall be exempted from the processing fee. The above processing fees shall also apply in cases of: a. Relocation to cities/municipalities of a higher classification of (i) approved but unopened branches/branch-lite units under Subsec. XL5L.7; ii) existing branches/branch-lite units under Subsection X151.9; and (iii) head office under Sec. XL52; b. Acquisition of existing branches/branch-lite units under item c of Subsec. X151..10; c. Conversion of branch-lite units into branches; and d. Establishment of sub-branches of foreign bank branches under Sec. X153.

Subsection X151.10 Temporary closure2, permanent closure and surrender of branch/branch-lite unit license, and sale/acquisition of branches/branch-lite units xxx c. Sale/acquisition of branches/branch-lite unit. Banks intending to sell/acquire existing/operating branches/branch-lite units shall secure prior approval of the Bangko Sentral. Provided That: banks acquiring branches/branch-lite units, including those in Metro Manila, shall comply with the applicable minimum capital requirement under Subsec. X111.1. For this purpose, the prudential criteria provided under Subsec. X1101.2 shall be applied to the acquiring bank. The following documents shall be submitted to the appropriate supervising department of the Bangko Sentral: (1) Written consent of the PDIC on the transfer of assets and assumption of liabilities as provided under Section 26 of the PDIC Charter (R.A. No. 3591), as amended by R.A. No. 9302 and re-numbered under R.A. No. 10846. The said consent shall be obtained by both the selling bank and the acquiring bank; (2) For the Selling Bank: (a) Application letter signed by the president or officer of equivalent rank indicating the rationale for the closure and sale of the branches/branch-lite units; and (b) Corporate secretary's certificate on the approval of the stockholders, when required under the Corporation Code, and the board of directors (or equivalent management committee in the case of foreign bank branches) of the closure and sale of the branches/branch-lite units; (3) For the Acquiring Bank: (a) Application letter signed by the president or officer of equivalent rank indicating the rationale for the acquisition of the branches/branch-lite units; (b) Corporate secretary's certificate on the approvalof the board of directors (or equivalent management committee in the case of foreign bank branches) of the acquisition of branches/branch-lite units; and (c) Certification signed by the president or officer of equivalent rank and the chief compliance officer that the bank has complied with: (i) all the prudential criteria provided under Subsec. XLLOI.2; {ii)the minimum capital requirement under Subsec. XILI.L; and (iii) other pertinent banking laws, rules and regulations. An approved application to sell/acquire branches/branch-lite units shall be subject to the following conditions: (a) For the Selling Bank - (i) Upon receipt of notice of approval, but at least forty-five (45) calendar days prior to the closure, a notice of closure shall be sent to the depositors' and other creditors' last known addresses by registered mail, 2 With additionaf special regulatory relief in areas affected by Tropical Depression "Yolanda" as provided under Appendix 89o (Circular No. 82O doted 06 December 2013) Page 5 ot 27

or delivery service of other mail courier, or electronic mail, and posters on the closure of branches/branch-lite units shall also be displayed in conspicuous places in the premises of the branch/branch-lite units to be sold. Proofs of receipt of notice by the depositors and other creditors shall be kept on file and made available upon request of the Bangko Sentral; and (ii) Within five (5) banking days from the date of closure of the branch/branch-lite unit, a notice of such closure signed by the chief compliance officer and the head of the branches department, together with a certification that the notification requirement under ltem "i" above has been complied with, shall be submitted to the appropriate supervising department of the Bangko Sentral. (b) For the Acquiring Bank - The acquiring bank shall comply with Subsec. X151.8 on the requirements for opening a branch/branch-lite unit. B. Equity Investment in Allied and Non-Allied Undertaking Subsection X376.1. lnvestment in Equities. Banks may invest in equities of allied or non-allied undertakings, including corporate affiliations or structures, subject to approval of the Bangko Sentral and compliance with the prudential criteria provided under Subsec. X1101.2. A bank applying for approval to invest in allied or non-allied undertakings shall submit the following documents to the appropriate supervising department of the Bangko Sentral: a. Application letter signed by the president or officer of equivalent rank indicating the justifications on how the investment is aligned with the bank's business model and strategic direction. The application letter shall likewise provide the following information: (1) Name of the investee company; (2) Type of business activities; and (3) Interest to be held by the bank and the manner in which such interest will be held; b. Corporate secretary's certificate on the approval of the stockholders, when required under the Corporation Code, and the board of directors (or equivalent management committee in the case of foreign bank branches) of the proposed investment; c. Certification signed by the president or officer of equivalent rank and the chief compliance officer that the bank has complied with (i) all the prudential criteria prescribed under Subsec. XLLOL.2, (ii) the minimum capital required under Subsec. X11-1.1, (iii) the criteria on major investments under Subsec. X376.5(b), as applicable, and (iv) other pertinent banking laws, rules, and regulations;

d. Information on the non-bank allied/non-allied undertaking, as follows: t1) Financial projections (e.g., balance sheets and income statements) for the first three years of operation in case of establishment of a new allied or non-allied undertaking, or audited financial statements for the last three (3) years, in case of new or additional equity investments in an existing company; and l2l List of the members of the board of directors and senior officers; e. Articles of incorporation of the investee company; f . Corporate secretary's certificate on the approvalof the stockholders, when required under the Corporation Code, and the board of directors of the investee company to allow the Bangko Sentralto examine its books; and g. Favorable ruling/no-objection ruling or exemption from compulsory notification requirement, as applicable, from the Philippine Competition Commission. Subsection X376.5. Guidelines for major investments. The following are the guidelines for major acquisitions or investments by a bank including corporate affiliations or structures to implement Section 50 of R.A. No. 8791. A. XXX b. xxx c. The Bangko Sentral may impose conditions on any approval x x x d. The Bangko Sentral shall have the authority to seek corrective action x x x C. Investments in Subsidiaries and Affiliates Abroad Subsection X382.1. Application for authority to establish or acquire subsidiaries and affiliates abroad. Banks may invest in subsidiaries and affiliates abroad subject to approval of the Bangko Sentral and compliance with the prudential criteria provided under Subsec. X1101.2. A bank applying for authority to establish or acquire subsidiaries and affiliates abroad shall submit the following documents to the appropriate supervising department of the Bangko Sentral: a. Application letter for authority to establish or acquire subsidiaries and/or affiliates abroad signed by the president or officer of equivalent rank, with justifications on how the investment is aligned with the bank's business model and strategic direction. The application shall likewise include economic justification for such investment, indicating among others, the services to be offered, the minimum outlay such as capital requirement of the host country, and projected results of operations for the first three (3) years of operations; b. Corporate secretary's certificate on the approval of the stockholders, when required under the Corporation Code, and the board of directors of the establishment or acquisition of subsidiaries or affiliates abroad; PaCeT of 27

c. Certification signed by the president or officer of equivalent rank and the chief compliance officer certifying that: (1) The bank has complied with all the prudential criteria prescribed under Subsec. X1101.2 and other pertinent banking laws, rules, and regulations; (21 The bank has complied with the citizenship requirements, ownership ceilings, and other limitations on voting stockholdings in banks under existing laws, and regulations; (3) The bank has sufficient experience and expertise to engage in international banking operations; and (4) An application for such establishment/acquisition has been filed with the appropriate government agency of the host country; and d. Organizational set-up of the proposed office showing the proposed positions and the qualifications set out for senior management as well as the names of individuals who will hold said positions. Subsection X382.3. Conditions for approval of application. The approval of the application to establish or acquire a subsidiary or an affiliate abroad shall be subject to the following conditions: a. The senior officers who will be in-charge of the bank's subsidiary or affiliate abroad shall have sufficient background and expertise that are relevant to the positions and possess the qualifications necessary to carry out the corresponding duties and responsibilities; b. xxx C. XXX d. xxx E. XXX f. xxx 8. XXX h. xxx; i. xxx;and j. Investments in subsidiaries and/or affiliates abroad shall be subject to the limitations and restrictions under Section X383. D. Trust and Other Fiduciary Business Subsection X4O4.t. Application for authority to perform trust and other fiduciary business. Banks may engage in trust and other fiduciary business subject to approval of the Monetary Board and compliance with the prudential criteria provided under Subsec. XILOL.2. Banks applying for authority to engage in trust and other fiduciary business shall submit the following documents to the appropriate supervising department of the Bangko Sentral:

a. Application letter signed by the president or officer of equivalent rank with justifications on how the license is aligned with the bank's business model and strategic direction; b. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) to engage in trust and other fiduciary business; c. Certification signed by the president or officer of equivalent rank and the chief compliance officer certifying that the institution has complied with all the: (i) prudential criteria prescribed under Subsec. XLLOL.2; (ii) required minimum capital under Subsec. Xl11.1; and (iii) pertinent banking laws, rules and regulations on trust and other fiduciary business; d. The articles of incorporation or governing charter of the institution which shall include among its powers or purposes, acting as trustee or administering any trust or holding property in trust or on deposit for the use, or in behalf of others; and e. The by-laws of the institution which shall include among other things, provisions on the following: (1) The organization plan or structure of the department, office or unit which shall conduct the trust and other fiduciary business of the institution; (2) The creation of a trust committee, the appointment of a trust officer and subordinate officers of the trust department; and (3) A clear definition of the duties and responsibilities as well as the line and staff functional relationships of the various units, officers and staff within the organization. Subsection X404.2. Required capital. x x x IBs. P650.0 million or such amounts as may be required by the Monetary Board in the future. Subsection X404.4. Pre-operating requirements. A bank authorized to engage in trust and other fiduciary business shall comply with the following, before engaging in actual operations: a. Deposit with the Bangko Sentral eligible government securities amounting to P500,000 as minimum basic security deposit forthe faithful performance of trust and other fiduciary duties required under Subsec. X405.1; b. Completion of the following activities and retention of corresponding supporting documents: (1) Establishment of the trust department, development of policies and procedures related to the trust business, risk management system and internal controls, and Page9 of 27

delineation of duties and responsibilities of the different units in the trust departmen! and l2l Establishment of personnel and management positions for trust operations and defining the corresponding qualification requirements and duties and responsibilities. Records of profiles of individuals holding the positions shall be maintained. The guidelines on the issuance of the Certificate of Authority to register with the SEC and to operate trust and other fiduciary business are provided under Sec. X103. Subsection 404.5. shall be inserted in the MORB, which shall read as follows: Subsection X404.5. Licensing fees. Applicable licensing fee provided under Sec. XlL03 shall be immediately charged upon approvalof the bank's application for the authority to perform trust and other fiduciary business. Section 2404. Grant of Authority to Engage in Limited Trust Business to Thrift Banks. a. xxx b. xxx c. Required capital. A TB applying for authority to engage in limited trust business must have minimum capital accounts under existing regulations or such amounts as may be required bythe Monetary Board in the future. d. Requirements for engaging in limited trust business. x x x The guidelines on the issuance of the Certificate of Authority to register with the SEC and to operate trust and other fiduciary business are provided under Sec. X103. e. Administration of properties held in trust. x x x f. Applicability of the rules and regulations on trust, other fiduciary business and investment management activities. x x x Subsection 24O4.L. shall be inserted in the MORB, which shall read as follows: Subsection 24O4.L Application for Authority to Perform Limited Trust Business. A TB may engage in limited trust business subject to approvalof the Bangko Sentral and compliance with the prudential criteria provided under Subsec. X1101.2. A TB applying for authority to engage in limited trust business shall submit the following documents to the appropriate supervising department of the Bangko Sentral: 1. Application letter signed by the president or officer of equivalent rank including justifications on how the license is aligned with the bank's business model and strategic direction; 2. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) to perform limited trust business; and

3. Certification signed by the president or officer of equivalent rank and the chief compliance officer certifying that the institution has complied with all the: (i) prudential criteria prescribed under Subsec. XLLOL.2; (ii) minimum capital required under existing regulations or such amounts as may be required by the Monetary Board; and (iii)other pertinent banking laws, rules and regulations. Subsection 2404.2. shall be inserted in the MORB, which shall read as follows: Subsection 2404.2. Licensing fees. Applicable licensing fee provided under Sec. X1103 shall be immediately charged upon approval of the bank's application for the authority to perform trust and other fiduciary business. Section 3404. Grant of Authority to Engage in Limited Trust Business to Rural Banks. a. xxx b. xxx c. Required capital. An RB applyingfor authorityto engage in limited trust business must have minimum capital accounts of P100.0 million, or such amounts as may be required by the Monetary Board in the future. d. Requirements for engaging in limited trust business. x x x The guidelines on the issuance of the Certificate of Authority to register with the SEC and to operate trust and other fiduciary business are provided under Sec. X103. e. Administration of properties held in trust. x x x f. Applicability of the rules and regulations on trust, other fiduciary business and investment management activities. x x x Subsection 3404.L shall be inserted in the MORB, which shall read as follows: Subsection 3404.1. Application for Authority to Perform Limited Trust Business. An RB may engage in limited trust business subject to approval of the Bangko Sentral and compliance with the prudential criteria provided under Subsec. X1101.2. An RB applying for authority to engage in limited trust business shall submit the following documents to the appropriate supervising department of the Bangko Sentral: Application letter shall be signed by the president or officer of equivalent rank including justifications on how the license is aligned with the bank's business model and strategic direction; 2. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) to engage in limited trust business; and 3. Certification signed by the president or officer of equivalent rank and the chief compliance officer certifying that the institution has complied with all: (i) the prudential criteria prescribed under Subsec. XLLOI.2; (ii) minimum capital required Page LL of 27

under existing regulations or P100.0 million, whichever is higher, or such amounts as may be required by the Monetary Board; and (iii) other pertinent banking laws, rules, and regulations. Subsection 3404.2. shall be inserted in the MORB, which shall read as follows: Subsection ?404.2. Licensing fees. Applicable licensing fee provided under Sec. X1103 shall be immediately charged upon approval of the bank's application for the authority to perform trust and other fiduciary business. Section 4. Sections/Subsections XLSL.7 /XL5L.9/XL5L.L0/XL62.3/X2L3/X4LO.6 are hereby amended to amend the requirements on permissible activities as follows: Permissible Activities with Tvpe C License A. Relocation/VoluntaryClosureofBranches/Branch-liteUnits Subsection X151.7. Opening of branches/branch-lite units. Approved branches/branch-lite units shall be opened, as follows: xxx The opening of approved branches/branch-lite units ffioy, however, be suspended or revoked by the appropriate supervising department of the Bangko Sentral upon approval ofthe Deputy Governor x x x (2) The bank or any of its subsidiary bank is initiated under PCA or is under condition/s subject to PCA or if already under PCA, continuously fails to comply with the MOU/PCA plan (PCAP), except, if such branches/branch-lite units are critical elements of the MOU/PCAP or shall support the fulfillment of the MOU/PCAP; (3)x x x Relocation of approved but not yet opened branches/branch-lite units may be allowed subject to notification to the Bangko Sentral and continuing compliance with the prudential criteria prescribed under Subsec. XLLOL.Z. For this purpose, banks shall submit the following documents, within 10 banking days from the approval of the board of directors of the relocation, to the appropriate supervising department of the Bangko Sentral: (a) Notification letter signed by the president or officer of equivalent rank indicating the rationale for relocation; (b) Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) to relocate approved but unopened branches/branch-lite units; (c) Certification signed by the president or officer of equivalent rank and the chief compliance officer of the bank's continuing compliance with all the prudential PaEe t2 of 27

criteria prescribed under Subsec. XLL0L.2 and other pertinent banking laws, rules and regulations; and (d) Authorization to debit their demand deposit accounts for the applicable processing fee under Subsec. X151.5 in case of relocation to cities/municipalities of a higher classification. The opening of the relocated branch/branch-lite unit shall be made within the prescribed period mentioned above from date of approval of its establishment. As an incentive to merger/consolidation of banks or purchase/acquisition of majority x x x Subsection X151.9 Relocation of branches/branch-lite unitss. Relocation of existing branches/branch-lite units, whether to be opened at the new site on the next banking day or within one (1) year from the date of closure of the branch/branch-lite unit, may be allowed subject to continuing compliance with the prudential criteria prescribed under Subsec. XLIOL.2, and in accordance with the following procedures: a. A notice of relocation of branch/ branch-lite unit signed by the president or officer of equivalent rank, together with a corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the said relocation, certification signed by the president or officer of equivalent rank and the chief compliance officer of the bank's continuing compliance with all the prudential criteria prescribed under Subsec. X1101.2 and other pertinent banking laws, rules and regulations, and an undertaking that the bank shalf comply with the notification requirement under ltem "b" below, shall be submitted by the bank to the appropriate supervising department of the Bangko Sentral within 10 banking days from the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the relocation. The notice shall include lnformation as to the new relocation site, the timetable for said relocation, and the branch/branch-lite unit that will handle the transactions of the branch/branch-lite unit to be relocated, as may be applicable. b. Notice of relocation shall be sent by the bank to the depositors' and other creditors' last known addresses x x x; XXX e. Branches/branch-lite units may be relocated anywhere subject to applicable processing fee under Subsec. X151.5. In this respect, in addition to item "a" above, banks shall submit an authorization to debit their demand deposit accounts for the processing fee; and f. xxx 3 With additional special regulatory relief in areas affected by Tropical Depression "Yolanda" as provided under Appendix 89o (Circulor No. 82O dated 06 December 2073). PaEe L3 of 27

Subsection X151.10 Temporary closurea, permanent closure and surrender of branch/branch-lite unit license, and sale/acquisition of branches/branch-lite units a. Temporary closure of existing branches/branch-lite unit/s. Temporary closure of existing branches/branch-lite units for the purpose of undertaking renovations/major repairs of office premises/facilities and for other valid reasons may be allowed: Provided, That the branch/branch-lite unit shall be reopened within a period of one (L) year from the date of temporary closure in accordance with the following procedures: (1) A notice of temporary closure signed by the president or officer of equivalent rank, together with a corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the temporary closure and stating the justifications/reasons therefor; and an undertaking that the bank shall comply with the notification requirement under ltem "2" below, shall be submitted to the appropriate supervising department of the Bangko Sentral within ten(10) banking days from the approval of the board of directors of the temporary closure. x x x (2) Notice of temporary closure shall be sent by the bank to the depositors' and other creditors' last known addresses x x x; XXX b. Permanent closure and surrender of bronchlbranch-lite unit license. Permanent closure and surrender of branch/branch-lite unit license may be allowed subject to the followi ng requ irements: (1) Submission of a notice of permanent closure and surrender of branch/branch-lite unit/s license signed by the president or officer of equivalent rank, together with a corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the permanent closure and surrender of branch/branch-lite unit/s license and an undertaking that the bank shall comply with the notification requirement under ltem "2" below. Said documents shall be submitted to the appropriate supervising department of the Bangko Sentral within 10 banking days from the approval of the board of directors of the permanent closure. (2) Notice of closure shall be sent by the bank to the depositors' and other creditors' last known addresses by registered mail service of the PhilPost or delivery service of other mail couriers or electronic mail, and posters shall also be displayed in conspicuous places in the premises of the branch/branch-lite unit/s to be closed. Proofs of receipt of notice by the depositors and other creditors shall be kept on file and made available upon request of the Bangko Sentral; XXX a with additionaf special regulatory relief in areas affected by Tropical Depression "Yolanda" as provided under Appendix 89a (Circulor No. 820 doted 06 December 2O73).

B. Outsourcing/lnsourcingofBankingFunctions Subsection X162.3 Authority to outsource. Banks may outsource designated activities subject to notification to the Bangko Sentral and compliance with the prudential criteria prescribed under Subsec. X1101.2. For this purpose, Banks shall submit the following documents to the appropriate supervising department of the Bangko Sentral within 10 banking days after approval of the board of directors of the proposal to outsource/insource banking functions: L. Notification letter signed by the president or officer of equivalent rank indicating the description of the activities to be outsourced; 2. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the outsourcing activity; and 3. Certification, signed by the president or officer of equivalent rank and the chief compliance officer, that the bank has complied with all the prudential criteria under Subsec. XLLOL2 as well as other pertinent banking laws, rules and regulations on outsourcing. In case of non-compliance with the prudential criteria prescribed under Subsection XILOL.2, the bank must secure prior approval from the appropriate supervising department of the Bangko Sentral whose evaluation will be based on the bank's ability to manage risks attendant to outsourcing. C. Servicing Deposits Outside Bank Premises Section X213 Servicing Deposits Outside Bank Premises. A bank may solicit and accept deposits outside of its premises through its employees subject to notification to the Bangko Sentral, compliance with the prudential criteria prescribed under Subsec. X1101.2 and the following conditions: a. The bank shall observe x x x; b. Transactions with depositors x x x; and c. The bank's board of directors shall adopt clearly-defined written policies, procedures and controls for the operation of deposit servicing activities outside of bank premises, including but not limited to the criteria for determining to whom the service will be made available, and the terms and conditions for such services. Servicing of deposits outside the bank premises include deposit pick-up/delivery services using vehicles accompanied by an authorized bank teller/mobile bank teller, and establishment of tellering booths in BIR offices. Within 10 banking days from the approval of the board of directors of the proposal to engage in solicitation and acceptance of deposits outside the bank premises, the bank Page 15 ot 27

shall submit the following to the appropriate supervising department of the Bangko Sentral: a. Notification letter signed by the president or officer of equivalent rank that the bank will engage in servicing of deposits outside the bank premises; b. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the servicing of deposits outside the bank premises; and Certification signed by the president or officer of equivalent rank and the chief compliance officer, that the bank has complied with (i) all the prudential criteria prescribed under Subsec. XItlt.z, (ii) conditions set out in this Section; and (iii) other pertinent banking laws, rules and regulations. Additional conditions for the establishment of tellering booths in BIR offices: a. As determined by the BlR, tellering booths may be established in identified BIR offices during the tax collection period. The establishment of tellering booths shall be covered by a service level agreement between the bank and the BIR; and b. Tax collections received shall be subject to rules on government deposits. The Bangko Sentral reserves the right to deploy any of its supervisory tools to promote adherence to the provisions set forth in this Section in accordance with Subsection X1101.3. D. Amendment of the Plan Rules of UITF Subsection X410.6 Plan Rules. Xxx k. X x x. The Plan may be amended by a resolution of the board of directors of the trustee: Provided, however, That participants in the fund shall be immediately notified of such amendments and shall be allowed to withdraw their participations within a reasonable time but in no case less than thirty (30) calendar days after the amendments are approved by the board, if they are not in conformity with the amendments made thereto: Provided, further, That amendments to the Plan may be allowed subject to notification to the Bangko Sentral and continuing compliance of the trust entity with the prudential criteria prescribed under Subsec. X1101.2. For this purpose, the trustee shall submit the following documents to the appropriate supervising department of the Bangko Sentral, within 10 banking days from the approval of the board of directors of the amendments: (1) Notification letter signed by the president or officer of equivalent rank indicating the amendments in the UITF; (21 Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches)of the amendments; Page L6 of 27

(3) Certification signed by the president or officer of equivalent rank and the chief compliance officer, that the trust entity has complied with allthe prudential criteria prescribed under Subsec. X1101..2 and other pertinent banking laws, rules and regulations; and (4) Amended Plan Rules and Appendices. Provided, finally, That amendments to the Plan that involve change in the investment objective and/or strategy, and risk profile shall be subject to the approval of the Bangko Sentral. For purposes of imposing monetary penalties provided under Subsec. X184.3 for Delayed/Unsubmitted reports, the notification on the amendments to the Plan shall be considered as "Category A-3" report. XXX Section 5. Sections/Subsections XL72.7/XL72.8/2772 are hereby amended to appfy the prudential criteria set out under Subsection XLtOt.z for initial application for a license/authority and to set out the requirements for application for expansion of activities/licenses classified as Type C License: Permissible Activities with Tvpe A License upon Initial Application and Expansion of Activities/Licenses classified as Tvpe C License A. Bank Offices as Outlet of Financial Products of Allied Undertakings/lnvestment Houses {Cross-Sel li ng Activities} Subsection XI72.7 Financial product providers. The bank shall exercise due care and diligence in selecting financial product providers. The bank shall consider the integrity, operational capability, financial capacity and track record of the financial product provider. In particular, the bank shall ensure that the financial product provider has in place a mechanism to resolve all queries, problems, and other concerns arising from cross-selling activities and this shallform part of the agreement between the bank and the financial product provider. XXX Subsection X172.8l2OI2- 1L72.2;2008 - t63L.2l Authority to cross-sell. A bank may engage in cross-selling activities subject to approval of the Bangko Sentral and compfiance with the prudential criteria prescribed under Subsec. XLIOL.2. A bank applying for authority to cross-sell financial products shall submit the following to the appropriate supervising department of the Bangko Sentral: a. Application letter to engage in cross-selling activities signed by the president, or officer of equivalent rank, which shall contain the following: (i)justifications on how the license to engage in cross-selling financial products is aligned with the bank's business model and strategic direction; (ii) types of financial products that will be offered and the target clients; and (iii) names of financial product providers and PaEe 17 of 27

description of their relationships with the bank and how they are related in the context of a financial conglomerate. In cases when the bank shall cross-sell simple insurance products of financial product providers that do not belong to the same financial conglomerate as the bank, the bank shall disclose any existing businesses or contractual agreements it has with the concerned financial product providers. b. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the cross-selling of financial products; and Certification, signed by the president or officer of equivalent rank and the chief compliance officer, that the bank has complied with all the prudential criteria under Subsec. XLL9L.Z as well as other pertinent banking laws, rules and regulations on cross-selling. Banks may subsequently offer additional financial products from the same or from other financial product providers without prior approval of the Bangko Sentral subject to continuing compliance with the prudential criteria prescribed under Subsec. X1101.2 and submission, within 10 banking days upon approval by the board of directors of the proposal to offer additional financial products, of the following documents to the appropriate supervising department of the Bangko Sentral: a. Notification letter signed by president or officer of equivalent rank indicating the description of the additional financial products that will be offered and the target clients; b. Names of the other financial product providers and description of their relationships with the bank and how they are related in the context of a financial conglomerate. In cases when the bank shall cross-sell simple insurance products of financial product providers that do not belong to the same financial conglomerate as the bank, the bank shall disclose any existing business or contractual agreements it has with the concerned financial product providers; Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the cross-selling of additional financial products of the financial product providers; and d. Certification, signed by the president or officer of equivalent rank and the chief compliance officer, of the bank's continuing compliance with the prudential criteria prescribed under Subsec. XLLOL.2 as well as pertinent banking laws, rules and regulations on cross-selling. Page L8 of 27

B. Marketing, Sale and Servicing of Microinsurance Products Section 2172. Marketing Sale and Servicing of Microinsurance Products by Thrift Bankss. Xxx TBs may apply for authority to sell and/or market microinsurance products subject to compliance with the prudential criteria prescribed under Subsec. XIIOL.2 and the following requirements. a. lssuance of license from the Insurance Commission (lC) (1) Submit to the appropriate supervising department of the Bangko Sentral, a notice of intention to act as microinsurance agent or broker. The Bangko Sentral shall then issue a no objection letter pursuant to Memorandum to All Banks No. 2011-15 dated 18 March 2OLL on the Reminder on the Proper Offering of Microfinance Services; and (21 Secure license from the lC as a microinsurance agent or broker, as may be applicable6 b. Grant of Authority to Sell and/or Market Microinsurance Products. The bank shall secure prior Bangko Sentral approval and shall submit the following documents to the appropriate supervising department of the Bangko Sentral: (1) Application letter signed by the president or officer of equivalent rank including justifications on how the license is aligned with the bank's business model and strategic direction. In addition, the application letter shall contain a description of the relationship of the bank with the financial product provider in the context of the financial conglomerate, as applicable, as well as description of the financial products. In cases when the bank shall cross-sell microinsurance products of financial product providers that do not belong to the same financial conglomerate as the bank, the bank shall disclose any existing businesses or contractual agreements it has with the concerned financial product providers; (2) Corporate secretary's certificate on the approval of the board of directors {or equivalent management committee in the case of foreign bank branches) of the presentation, sale and servicing (i.e., collect premiums and pay claims) of microinsurance products; (3) Certification, signed by the president or officer of equivalent rank and the chief compliance officer that the bank has complied with all the prudential criteria Insurance Commission (lC) issued Circular Letter {Ct) No. 2015-54 dated 16 October 2015 requiring the adoption and implementation of the Enhanced Microinsurance Regulatory Framework To act as a microinsurance agent of an authorized insurance provider, a bank needs to acquire the appropriate license from the lC. The requirements for such application consist of: (i) attendance in prescribed microinsurance training course and passing the qualifying examination at the end of the course; and (ii) amending a bank's articles of incorporation (AOl). In view of the latter requirement, applicable bank shall amend their AOt by including a secondary purpose of acting as a microinsurance agent, and shall submit simultaneously the amended AOI to the appropriate BSP office and the lC. (See lC Memo Circular No. 6-2011 dated 15 February 2011). Page L9 ol 27

prescribed under Subsec. Xl101.2 and other pertinent banking laws, rules and regulations, and that: (a) The microinsurance product is authorized for cross selling under existing BSP rules and regulations; (b) The microinsurance product is approved by the lC and issued by an entity duly licensed and held in good standing by the lC; (c) The bank conducted product due diligence to be suitable to its customers. As part of product due diligence, the bank has likewise determined that the microinsurance product-issuing insurance provider has a customer care and claims-handling mechanism in place to handle consumer concerns; (d) The organic informational and promotional materials for the microinsurance products comply with BSP requirements; and (e) The bank personnel concerned has undertaken the necessary training and passed the qualifying examination for the presentation and sale of microinsurance products, in compliance with the requirements set forth by the lC on marketing personnelfor insurance products; (f) The bank has duly executed a written agreement with the insurance provider on the presentation, sale and servicing bythe bank of the financial products of the latter, including the terms of compensation for the services; (g) The bank shall maintain the following documents as part of its records: (i) Copies of the latest Certificate of Authority from the lC covering all insurance companies whose microinsurance products are being marketed or sold by the bank; (ii) Copies of the letters of approval from the lC covering all the microinsurance products to be marketed or sold; and (iii) Bank's license from the lC as a microinsurance agent or broker or in lieu of a bank's license as a microinsurance agent or broker, copies of the license from the lC covering all its marketing personnel for microinsurance products; and (4) Bank's license from the lC as a microinsurance agent or broker. A bank authorized to sell and/or market microinsurance products must amend its AOI to include acting as microinsurance agent/broker as secondary purpose. The guidelines on the issuance of the Certificate of Authority to register with the SEC to amend the AOI are provided under Sec. X103. Subsection 2L72.L shall be inserted in the MORB, which shall read as follows: Subsection 2172.I. A TB may subsequently sell and/or market additional microinsurance products without prior approval of the Bangko Sentral subject to continuing compliance with the prudential criteria prescribed under Subsec. X1101.2 and submission of the following to the appropriate supervising department of the Bangko Sentral within 10 banking days upon approval by the board of directors: Page 20 ot 27

a. Notification letter signed by the president or officer of equivalent rank describing the additional microinsurance product that will be sold and/or marketed and the target clients; b. Corporate secretary's certificate on the approval of the board of directors (or equivalent management committee in the case of foreign bank branches) of the selling and/or marketing of additional microinsurance products; and c. Certification, signed by the president or officer of equivalent rank and the chief compliance officer, of the bank's continuing compliance with the prudential criteria prescribed under Subsec. XILOL2 as well as with pertinent banking laws, rules and regulations on marketing, sale, and servicing of microinsurance products by thrift banks. Section 6. Subsection 4LLOLQ.2/450L5.2/450LP.2/4ILON.2/420LT.2 of the MORNBFI provides the prudential criteria in determining the eligibility of BSFIs for the licenses/authorities being applied for. In this respect, Sections/Subsections /4402r of the MORNBFT are 415LQ.I/4I5LQ.5/4404Q.3/4404Q.4/4IOLN/4101N.1 hereby amended to apply the prudential criteria set out under Subsection 41L0tQ.2 / 450L5.2 I 45OLP .2 / 4LLON.2 / 420Lf .2 and to a m en d th e I ce n si n g req u i rem e nts i as follows: Permissible Activities with Tvpe A License A. Establishment of Branches Subsection 4151Q.1 Evaluation guideposts. The rate at which branches, agencies, extension offices, etc. are to be established shall depend upon the ability of the company to conduct operations from the head office, as well as correspondent/banking arrangements, and subject to the prudential criteria prescribed under Subsec. X41101Q.2. Subsection 4151Q.5 Documentary requirements. All applications shall be supported by the following documents: a. Application letter signed by the president of the entity or officer of equivalent rank including justifications on howthe license is aligned with the entity's business model and strategic direction with information on: (1) Services to be offered, as well as any extension offices, etc. to be opened; and l2l Areas to be served. b. Corporate secretary's certificate on the approval of the board of directors of the establishment of a branch; and c. Certification signed by the president or officer of equivalent rank and the chief compliance officer that the applicant entity has complied with all the prudential criteria prescribed under Subsec. 41101Q.2. Page 2I of 27

B. Trust and Other Fiduciary Business Subsection 4404Q.1 shall be inserted in the MORNBFI, which shall read as follows: Subsection 4404q.1 Application for Authority to Perform Trust and Other Fiduciary Business. An institution may engage in trust and other fiduciary business subject to approval of the Monetary Board and compliance with the applicable prudential criteria provided under Subsec. 41101Q.2. Entities applying for authority to engage in trust and other fiduciary business shall submit the following documents to the appropriate supervising department of the Bangko Sentral: a. Application letter signed by the president or officer of equivalent rank with justifications on how the license is aligned with the institution's business model and strategic direction; b. Corporate secretary's certificate on the approval of the board of directors to engage in trust and other fiduciary business; and c. Certification signed by the president or officer of equivalent rank and the chief compliance officer certifying that the institution has complied with the: (i) applicable prudential criteria prescribed under Subsec. 4110LQ.2; and (ii) other pertinent laws, rules and regulations on trust and other fiduciary business. Subsection 4404Q.2. shall be inserted in the MORB, which shall read as follows: Subsection 44O4Q.2. Licensing fees. Applicable licensing fee provided under Sec. 41103Q shall be immediately charged upon approval of the institution's application for the authority to perform trust and other fiduciary business. Subsection 4404Q.3 Prerequisites for engaging in trust and other fiduciary business. An institution, applying for authority to engage in trust and other fiduciary business, shall submit the following requirements to the appropriate supervising department of the Bangko Sentral: A. XXX b. xxx C. XXX d. xxx e. Where the applicant is not authorized to engage in quasi-banking functions, it shall meet the following additional requirements: (L) The adoption of a formula or criteria for QBs in the determination of compliance with the capital-to-risk assets ratio and ceilings on loans to DOSRI; and (2) The substitution of the reserve requirements with the cash ratio, as follows: (a) Primary reserves to Bills Payable; and (b) Primary and secondary reserves to Bills Payable; where primary reserves consist of cash on hand, cash in vault, COCls, due from the Bangko Sentral and due from banks; and where secondary reserves consist of Bangko Sentral supported government securities, T-Bills and other government securities. Page 22 ot 27

Subsection /1404Q.4 {2008 - 4404Q.2} Pre-operating requirements. An institution authorized to engage in trust and other fiduciary business shall comply with the following, before engaging in actual operations: a. Deposit with the Bangko Sentral eligible government securities amounting to P500,000 as minimum basic security deposit for the faithful performance of trust and other fiduciary duties required under Subsec. 4405Q.1; and b. Completion of the following activities and retention of corresponding supporting documents: 1. Establishment of the trust department, development of policies and procedures related to the trust business, risk management system and internal controls, and delineation of duties and responsibilities of the different units in the trust departmenU and 2. Establishment of personnel and management positions for trust operations and defining the corresponding qualification requirements and duties and responsibilities. Records of profiles of individuals holding the positions shall be maintained. The guidelines on the issuance of the Certificate of Authority to register with the SEC and to operate trust and other fiduciary business are provided under Sec. 4104Q. Section 4101N Applicable Regulations on Trust and Other Fiduciary Activities. Trust operations and investment management activities of NBFIs not performing quasi-banking functions shall be subject to the applicable regulations on such activities of NBFIs performing quasi-banking functions under Q Regulations of this Manual, and to the regulations implementing the Truth in Lending Act in Sec. 4307Q. Subsection 4101N.1 Sanctions. Pursuant to Section 91 of R.A. No. 8791, the Monetary Board may impose sanctions and monetary penalty for any violation of the provisions of the Q Regulations pertaining to trust entities and the regulations implementing the Truth in Lending Act in Sec. 4309Q. X x x Section 44O2T Applicable Regulations on Trust and Other Fiduciary Activities. In addition to the provisions in the "T" regulation of the MORNBFI, trust operations and other fiduciary activities, including investment management shall be subject to the following regulations provided under the MORNBFI, in so far as applicable to the TC: A, XXX b. xxx c. xxx d. xxx E. XXX f. xxx g. xxx h. xxx ?age23 of 27

i. XXX j. XXX k. Section 4404Q Authority to Perform Trust and Other Fiduciary Business. Section 7. Sections/Subsections 44O6Q.9/47OLQ.I3/4I9OS/4L61P/4t9ON/ 4410Q.6 of the MORNBFI are hereby amended to set out the requirements for Type C I icenses as d efi n ed u n der Su bsections 4 1 101Q. 2 / 45OtS.2 / 45OLP .2/ 4LL0N.2: Permissible Activities with Tvpe C License Subsection 4406q.9 Outsourcing services in trust departments. The rules on outsourcing of banking functions as shown in Sec. X162 of the MORB and Appendix Q-37 shall be adopted insofar as they are applicable to trust departments of QBs performing trust and other fiduciary business and investment management activities. Subsection 4701Q.13 Outsourcing of internet and mobile electronic services. The rules on outsourcing of banking functions as shown in Sec. XL62 of the MORB and Appendix Q-37 shall be adopted insofar as they are applicable to QBs' outsourcing of internet and mobile electronic services. Section 41905 Guidelines on Outsourcing. The rules on outsourcing of banking functions as shown in Sec. X152 of the MORB and Appendix Q-37 shall be adopted insofar as they are applicable to NSSLAs. Section 4L6tP Guidelines on Outsourcing. The rules on outsourcing of banking functions as shown in Sec. X162 of the MORB and Appendix Q-37 shall be adopted insofar as they are applicable to pawnshops. Section 4190N Guidelines on Outsourcing. The rules on outsourcing of banking functions as shown under Sec. X162 of the MORB and Appendix Q-37 shall likewise apply to NBFls. Subsection 4410Q.6 Plan Rules. Xxx k. X x x. The Plan may be amended by a resolution of the board of directors of the trustee: Provided, however, That participants in the fund shall be immediately notified of such amendments and shall be allowed to withdraw their participations within a reasonable time but in no case less than thirty (30) calendar days after the amendments are approved by the board, if they are not in conformity with the amendments made thereto: Provided, further, That amendments to the Plan may be allowed subject to notification to the Bangko Sentral and continuing compliance of the trustee with the prudential criteria prescribed under Subsec. 41101Q.2. For this purpose, the trustee shall submit the following documents to the appropriate supervising department of the Bangko Sentral within 10 banking days from the approval of the board of directors of the amendments: Page24 of 27

a) Notification letter signed by the president or officer of equivalent rank indicating the amendments in the UITF; b) Corporate secretary's certificate on the approval of the board of directors of the amendments; c) Certification signed by the president or officer of equivalent rank and the chief compliance officer, that the trustee has complied with all the prudential criteria prescribed under Subsec. 41101Q.2 and other pertinent laws, rules and regulations; and d) Amended Plan Rules and Appendices. Provided, finally, That amendments to the Plan that involve change in the investment objective and/or strategy, and risk profile shall be subjecttothe approval of the Bangko Sentral. For purposes of imposing monetary penalties provided under Subsec. 4L92Q.2 for Delayed/Unsubmitted reports, the notification on the amendments to the Plan shall be considered as "Category A-3" report. Xxx Section 8. Sections XLLO3/4LL03Q/4503P /4LI2N/4203T of the MORB/ MORNBFI are hereby added to cover the types of fees applicant BSFIs are required to pay consequent to its filing of an application for Types A and B license/authority. Section xtLO3l4Lt03Q/4503P14LL2N14203T. Processing and Licensing Fees. All applications shall be charged with the following processing fees pursuant to Section ll.3.i of Appendix 1L8 of the MORB and Q-71lS-L2/P-LL/N-L4 of the MORNBFT: Processing Fees Type of Universal and Thrift Rural and Non-Bank License/ Commercial Bank Bank Cooperative Banks Fina ncia I Authoritv Institutions A 50,000 20,000 15,000 10,000 b s0,000 20,000 15,000 10,000 Certain Type A licenses shall be charged with the following licensing fees upon approval pursuant to Section ll.3.ii of Appendix 118 of the MORB and Q-71/S-I2/P-LL/N- 14 of the MORNBFI: Licensins Fees* Type of Universal and Thrift Rural and Non-Bank License/ Commercial Bank Bank Cooperative Banks Financial Authoritv lnstitutions A 200,000 100.0ff) 50.000 50,000 *Licensing fee shall be net of the processing fee The foregoing tables shall not apply to licensing applications with separate fee structure under specific sections of the MORB/MORNBFI. Page25 of 27

Section 9. The following Subsections of the MORB are hereby deleted: Deleted Subsections Title/Description Covered by Section/Subsection Subsection X382.2 Requirements for Subsection X382.1 establishing subsidiaries or affiliates abroad Subsection X404.3 Prerequisites for engaging Subsection X404.1, in trust and other fiduciary business Subsection X151.19 Tellering booths Section X213 Subsection 4151Q.3 Other requirements/ Subsection 41101Q.2 factors to be considered Subsection 4151Q.4 Conditions precluding Subsection 41101Q.2 processing of applications Section 10. The following provisions with reference to "special licensing fee" under Subsection X151.5 are hereby deleted: Subsections Deleted Provision Sec. X152 Xxx Provided, That head offices located outside the cities previously considered as restricted areas as defined under Subsec. X151.4 which will be relocated therein shall be subject to the special licensing fee under Subsec. X151.5 upon approval of the relocation. Xxx Subsection X153.2 Xxx Provided, That sub-branch applications in the cities previously considered as restricted areas as defined under Subsec. X151.4 shall also be subject to the special licensing fee under Subsec. X151.5, as applicable. Section 11. Transitory Provisions. Applications filed with the Bangko Sentral prior to the effectivity of this Circular shall not be charged with processing and licensing fees p rovi d ed u n d e r Section s XLIO3 / 4Lt03Q/4503 P / 41L2N / 4203T . For application related to branching activities covered under Subsection X151..5, as amended, approved after the effectivity of this Circular, the processing fees provided under the said Subsection, as amended, shall be collected upon approval of the application. Applications for Type C licenses received prior to the effectivity of this Circular shall be deemed to have complied with the notification/certification requirements if after thirty (30) banking days from the effectivity of this Circular, the appropriate supervising department of the FSS does not advise the BSFI concerned of any deficiency on such application. Page 26 ot 27

The foregoing provision shall be incorporated as a footnote to sectio n s xLLoz / 4tL02 Q/4502S / 4502p / 4LLLN / 4202T of t h e M OR B/M O R N B F l. Section 12. Effectivity. This Circular shall take effect fifteen (L5) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: /1r"bru"ry 2oL9 Page 27 ot 27