BSP streamlines guidelines for voluntary surrender of licenses
THE Monetary Board (MB) has approved streamlined guidelines on the voluntary surrender of banking licenses.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said the enhanced guidelines approved by its policy-making body will cover banks that plan to proceed to voluntary dissolution and liquidation or those who intent keep their corporate or cooperative life and convert into a nonbank entity.
“The streamlining of the guidelines emphasizes the primary requirement that only a bank in sound financial condition and does not have any of the grounds to prohibit it from doing business under Section 30 of Republic Act (RA) No. 7653 or the New Central Bank Act, as amended, may be allowed to undergo voluntary surrender of its banking license,” the central bank said.
Section 30 of RA 7653 states proceedings in receivership and liquidation will occur when the MB finds that a bank or quasi-bank is unable to pay its liabilities as they become due; has insufficient realizable assets — as determined by the BSP — to meet its liabilities; cannot continue in business without involving probable losses to its depositors or creditors; or has willfully violated a cease and desist order under that has become final.
The central bank said the new guidelines cover instances of voluntary surrender where no creditors will be affected during the resulting voluntary dissolution or the conversion into a nonbank entity.
“At the minimum, the applicant bank will ensure immediately accessible funds equivalent to its outstanding deposit obligations to provide assurance on the repayment of depositors,” the BSP said.
“The guidelines also stressed that even after the surrender of banking license, the BSP may impose sanctions to concerned bank’s directors, officers and employees who are found to have violated banking laws, rules and regulations,” the central bank added.
