Banks that are in sound financial condition and do not violate the New Central Bank Act may be allowed to undergo voluntary surrender of their banking license, according to the Bangko Sentral ng Pilipinas (BSP).
In a statement on Monday, BSP said this is part of the recently approved enhanced guidelines on voluntary surrender of a banking license.
The guidelines provide that banks may surrender their license either with a plan to proceed to voluntary dissolution and liquidation or to keep the entity’s corporate/cooperative life and convert into a nonbank entity.
The enhanced guidelines cover instances of voluntary surrender where no creditors will be affected during the resulting voluntary dissolution or the conversion into a nonbank entity.
As a minimum requirement, the applicant bank needs to ensure immediately accessible funds equivalent to its outstanding deposit obligations to provide assurance on the repayment of depositors.
The guidelines also emphasized that even after the surrender of banking license, the BSP may impose sanctions to concerned bank’s directors, officers and employees who are found to have violated banking laws, rules and regulations.
Under the new BSP Charter, the BSP is also exempt from taxes on income derived from its governmental functions.
RA 11211 also restores the Central Bank’s authority to issue debt papers as part of its regular operation.
In terms of mandate, the law removes money supply and credit levels as basis for determining monetary policy.
Also among the salient points of the new law include the wider coverage of institutions under BSP supervision to include money service businesses, credit granting businesses and payment system operators.