STANDARD PRE-QUALIFICATION REQUIREMENTS FOR THE GRANT OF BANKING AUTHORITIES
(Appendix to Sections Indicated Below)
A. Banks Applying For Authority to –
a. Establish offices abroad (Sec. 106 on Requirements for establishing an office abroad);
b. Accept or create demand deposits (Sec. 201 on Prerequisites to accept or create demand deposits for thrift banks/ rural banks/cooperative banks);
c. Accept NOW accounts (Sec. 221 on Prerequisites to accept negotiable order of withdrawal accounts for thrift banks/ rural banks/cooperative banks);
d. Issue NCTDs (Sec. 217 on Prerequisites to issue negotiable certificates of time deposits for thrift banks/rural banks/cooperative banks);
e. Accept government deposits (Sec. 231 on Prerequisites for the grant of authority to accept deposits from the Government and government entities);
f. Engage in quasi-banking operations (Sec. 241 on Definition of terms and phrases);
g. Operate an EFCDU/FCDU; and
h. Engage in derivatives transactions (Sec. 613 on Generally authorized derivatives activities)
| B. Standard Pre-Qualification Requirements | Banking Authorities |
| • To establish offices abroad; • To accept demand, NOW, NCTDs; • To accept government deposits; and • To engage in quasi-banking, EFCDU/ FCDU and derivatives transactions |
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a. The bank has complied, during the period indicated immediately preceding the date of application, with the following: |
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| (1) Risk-based capital adequacy ratio; (2) Ceilings on credit accommodation to DOSRI; and (3) Liquidity floor on government deposits; |
60 days continuing continuing |
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b. The bank has not incurred net weekly reserve deficiencies; |
8 weeks |
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c. The bank has generally complied with banking laws, rules and regulations, orders or instructions of the Monetary Board and/or Bangko Sentral Management; |
applicable |
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d. The bank’s past due loans do not exceed twenty |
applicable |
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e. The bank has corrected as of date of application the major violations noted in its latest examination particularly relating to – |
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| (1) single borrower’s limit; and (2) total investment in real estate and improvements thereon, including bank equipment, does not exceed fifty percent (50%) of net worth as of date of application; |
applicable applicable |
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f. The bank’s accounting records, systems, procedures and internal control systems are satisfactorily maintained; |
applicable |
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g. The bank does not have float items outstanding for more than sixty (60) calendar days in the “Due From/To Head Office/Branches/Offices” accounts and the “Due From Bangko Sentral” account exceeding one percent (1%) of the total resources as of end of preceding month; |
applicable |
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h. The bank has no past due obligation with the Bangko Sentral or with any FI as of date of application; |
applicable |
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i. The bank’s facilities pertinent to the authority applied for are adequate; |
applicable |
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j. The officers who will be in-charge of the operation relating to the authority applied for have actual experience of at least two (2) years in another bank as in-charge (or at least as assistant-in-charge) of the same operation; |
applicable |
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k. The bank personnel who will handle the operation relating to the authority applied for, have attended appropriate seminars, workshops or on-the-job training or have experience of at least six (6) months; |
applicable |
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l. The bank has complied with the mandatory allocation of credit resources to small and medium enterprises for two (2) quarters immediately preceding the date of application; |
applicable |
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m. The bank has not been found engaging in unsafe and unsound banking practices during the last six (6) months immediately preceding the date of application where applicable; |
not applicable |
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n. The bank has complied with the twenty percent (20%) aggregate limit on real estate loans as of end of preceding quarter (for UBs/KBs only); |
not applicable |
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o. The bank has set up the prescribed allowances for probable losses, both general and specific, as of date of application; |
not applicable |
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p. The bank is a member of the Philippine Deposit Insurance Corporation in good standing as of date of application (for TBs/RBs/Coop Banks only) |
not applicable |
(Circular Nos. 987 dated 28 December 2017)