a. Type “A” – applications for licenses and/or authorities where compliance with the defined prudential requirements/criteria on licensing as described in this Section is a pre-condition for applicants to be considered eligible;
b. Type “B” – applications for licenses and/or authorities processed regardless of risk profile; and
c. Type “C” – activities which no longer require submission of applications and processing but shall be subject to submission of reports/certification/ notification within stated deadlines. However, compliance with pre-qualification requirements is subject to post verification and any false information and/or misrepresentation may be a basis for the imposition of appropriate enforcement actions described in this Section. The Bangko Sentral shall use this information to continuously tailor its supervisory strategy for the supervised entities and to maintain and continuously update its institutional database.
a. Applicant domestic banks must have a CAMELS composite rating of at least “3” and a “Management” rating of not lower than “3”, branches of foreign banks must have a ROCA rating of at least “3”, and BSFIs must have a RAS rating of at least “Acceptable”. Whenever applicable, ratings equivalent to cited minimum rating grade requirements under appropriate rating systems (i.e., IT Rating Systems, Trust Rating Systems, among others) shall apply for certain licenses and/or authorities;
b. Applicants have no major supervisory concerns in governance, risk management systems, and internal controls and compliance system, and characterize/ demonstrate the following:
(2) Risk management system and internal controls
(3) Compliance system
c. Applicants have complied with directives and/or are not subject of specific directives and/or enforcement actions by the Bangko Sentral.
a. Corrective action
(a) Suspension of activities. The conduct of activities related to the licenses/authorities granted may be suspended if the Bangko Sentral determines that the concerned bank no longer meets the criteria or standards set; or
(b) Revocation of licenses/authorities. The license/authority granted may be revoked in cases where violation, non-compliance with criteria/standards and/or false information are noted which affects the safety and soundness of banks’ operations; and/or
(c) Administrative sanctions. The responsible directors/officers who approve transactions and/or decisions that resulted in violations of laws, rules and regulations, orders, and directives issued by the Monetary Board or the Governor may be subject to reprimand, temporary suspension, and/or disqualification of directors/officers.
(Circular No. 947 dated 15 February 2017)
- As defined under Sec. 161 (Compliance function) business risk refers to conditions which may be detrimental to the institution’s business model and its ability to generate returns from operations, which in turn erodes its franchise value. Business risk includes reputational, compliance, market conduct and legal risks.
- Rehabilitation includes banks under the Prompt Corrective Action (PCA), Rehabilitation Program, Letter of Commitment and any other similar cases where banks are expected to comply specific terms and conditions to restore eligibility (safety and sound) status.