MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has given a unit of Malayan Bank the greenlight to operate as a quasi-bank giving it alternative financing options to boost its operations through more funds for relending or purchasing of receivables.
BSP Deputy Governor Nestor Espenilla Jr. has issued a circular giving Malayan Bank Savings and Mortgage Bank Inc. the authority to engage in quasi-banking functions.
As early as March 2009, the BSP’s Monetary Board issued a resolution approving the request of Malayan Bank Savings to engage in quasi-banking functions.
With a quasi banking license from the BSP, Malayan Bank Savings could now further widen its fund sources to support a more aggressive expansion.
RA 8791 or the General Banking Law of 2000 through Section 6 allows the BSP to grant companies the authority to engage in banking and quasibanking functions. The law states that no person or entity shall engage in banking operations or quasi-banking functions without authority from the central bank.
Banks with quasi-banking functions could borrow funds for the borrower’s own account, through the issuance, endorsement or acceptance of debt instruments of any kind other than deposits, or through the issuance of participation’s, certificates of assignment, or similar instruments with recourse, trust certificates, or of repurchase agreements, from 20 or more lenders at any one time, for purposes of relending or purchasing of receivables and other obligations.
Malayan Bank is a savings and mortgage bank which was granted authority to operate by the BSP in June 1996. The bank is a joint undertaking of the principal shareholders of GMA Network, Inc., LINQ Information Entertainment Quadrant Corp., Majalco Inc., and Liberty Flourmills.
It currently has branches in seven major cities in the Philippines namely Quezon City, Mandaluyong, Pasig, Marikina, Las Piñas, and in Sta. Rosa, Laguna.