BSP tightens rules on bank ownership

MANILA, Philippines - Shareholders of banks to be established and acquired will have to submit two new requirements to the Bangko Sentral ng Pilipinas (BSP) which wanted to make sure that bank owners are in good standing.

Copies of income tax returns and clearances from the Bureau of Internal Revenue and the National Bureau of Investigation will now have to be secured before BSP approves a bank application and acquisition, Circular No. 774 said.

Proposed directors, officers, subscribers and shareholders will be required to submit the documents, it added.

The circular, which amended certain annexes of the Manual Regulations of Banks (MORB), was issued on Nov. 16 and will take effect 15 days after publication on newspapers.

“This is part of the screen to only let in quality major bank shareholders,” BSP Deputy Governor Nestor Espenilla Jr. said in a text message yesterday.

For her part, BSP Assistant Governor Ma. Dolores Yuvienco told reporters regulators want to ensure the stability of the banking system.

“The returns will show your financial capacity-if you really have the means to establish or acquire a bank. Of course, in this manner, we will be sure of the bank’s stability,” she explained.

The agency clearances, meanwhile, will validate the “integrity” of the bank owners and directors, Yuvienco said on the sidelines of the Rural Bankers Association of the Philippines anniversary.

She said BSP would want to avoid a situation when fronts are being used just to secure bank application approvals. “We want to be proactive on this,” she added.

Other requirements provided on the MORB were retained such as statements of assets, liabilities and net worth and justification and detailed plan of bank operation.