BSP extends period for bank relocation, repair

MANILA, Philippines - Banks have been given more time to relocate or temporarily close, if needed, by the Bangko Sentral ng Pilipinas (BSP), which wants to save time and paper from banks asking for extensions.

Under Circular No. 783 signed last Jan. 21, local banks that plan to relocate their branches, temporarily close for repairs, as well as foreign lenders that want to put up outlets may now do so within one year from approval by the BSP.

The timeframe was an extension from the original six-month allowable period under the Manual of Regulations for Banks (MORB). The order, which amended certain MORB provisions, takes effect 15 days after publication.

“This is for practical convenience for both the banks and BSP. It saves the trouble of requesting extension in case of delays,” BSP Deputy Governor Nestor Espenilla Jr. said in a text message.

For banks relocating, the circular said a notice signed by the bank president and approved by its board of directors will have to be filed before the BSP. The notice will include the relocation site and the timetable for the relocation.

The name of the branch that will handle transactions of the closed bank may also be indicated, the circular said.

If within 30 days the bank did not receive any reply from the BSP, the relocation is deemed to have the go-signal of monetary authorities, the circular said, provided that documentary requirements will still be submitted before and after relocation.

Among others, a notice and certification that the relocated branch will be opened after a year should be provided, it explained. Failure to do so would mean “permanent closure” of the branch.

Bank offices in “restricted areas”— cities of Manila, Quezon City, Parañaque, Makati, Pasay, Pasig, San Juan and Mandaluyong— could be relocated anywhere, the BSP said. Those outside of these areas could only be established on places where the bank is allowed to do so.

The same process will have to be observed for banks that will undergo “temporary closure” for renovations, BSP said.