Minimum Capital Requirement for Thrift Banks

EIANGKo SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR ctRcurAR No. !215 Series of 2011 Subject: Minimum Capital Requirement for Thrift Banks Pursuant to Monetary Board Resolution No. 246 dated 17 February 2011, the provisions of the Manual of Regulations for Banks (MORB) are hereby amended as follows: Section 1. Subsec. x111.1 on the minimum capitalization is hereby amended to read as follows: "Subsec. X111.1 Minimum copiltolization The required minimum capitalization (a) upon establishment of a new bank, (b) upon conversion of an existing bank from a lower to a higher category bank and vice versa, (c) upon relocation of the head office of a TB/RB in an area of higher classification, and (d) when majority of an RB's total assets and/or majority of its total deposit liabilities are regularly accounted for by branches located in areas of higher classification as provided in Subsec. X151.4 on the branching guidelines, shall be as follows: Required Minimum Bank Category Capitalization a. UBs F 4.95 billion b. KBs 2,40 billion c. TBs with Head Office in: (1) Metro Manila l billion (2) Cities of Cebu and Davao 500 million (3) Other Areas 250 million d. RBs with Head Office in: (1)Metro Manila 100 million (2) Cities of Cebu and Davao 50 million (3)All other cities 25 million (a) 1't to 4th class municipalities 10 million (5) 5'n to 5th class municipalities 5 million e. Coop Banks 10 million A. Mabini St., Malete 1004 Maniia, FhiiipDi.es.1632i524 /0'.tt . !y!vw,bsp.gov.pr . bsprnaiiC)bsp Etor.ph

"For the grant of the following special banking authorities: a. Quasi-banking functions for TBs; b. Trust and other fiduciary business for UIKBs and TBs; c. Limited trust for TBs and RBs/Coop Banks; d. Foreign currency deposit unit/expanded foreign currency deposit unit (FCDU/EFCDU); e. lssuance of foreign letters of credit (LCs) for TBs; f. Acceptance of demand deposit and NOW accounts for TBs and RBs/Coop Banks; and g. Acting as third party securities custodian/registry; the higher of (a) the required minimum capital under this Subsection at the time of the application for the grant of special banking authority or (b) the amount specified in the applicable SectionsAubsections for the grant of special banking authorities shall be the required minimum capital which shall be complied with on-a continuing basis. "Transftory provisron. Approved but not yet operating RBs as weil as pending and complete applications for establishment of a new RB or conversion of an existing bank from a higher category to an RB or for the grant of speciar banking authorities, as of 21 November 2010 (effectivity date of Circular No. G9G dated 29 o-ctooer zoro; shall not be covered by the new minimum capital requirement for RBs. 'Approved but not yet operating TBs as weil as pending and comprete applications for establishment of a new TB or conversion of an existing bank from a hi8her or lower category to a TB or grant of special banking authorities or relocation of a TB head office to areas of higher crassification, as of the effectivity of this circular shall not be covered by the new minimum capitar requirement for TBs.,, Section 2. Subsec. X151.2.f on the prerequisites for the grant of authority to establish a branch is hereby amended to read as follows: "subsec. xr51.2 prerequisites lor the gmnt ol authorrty to estobrish a bmnch. with prior approvar of the Monetary Board, bank may branches subject to the following pre-qualification requirements: "rt"brrrt "x x x "f. For purposes of evaruating branch apprications, theoreticar capitar shail be assigned to each branch to be estabrished, incruding approved but unopened branches, as follows:

ln millions RBs/ Location of Head Office UBs/KBs TBs Coop Banks Metro Manila P 100.0 P 25.0 P 10.0 Cities of Cebu and Davao 50.0 15.0 5.0 All other cities 25.0 10.0 2.5 1" to 4th class municipalities 20.0 5.0 1.0 5tn to 6tn class municipalities 15.0 2.5 0.5 "x x xt' This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FORTTHE MONETARY BOARD: March 201tr Page 3 of3