BSP streamlines banks’ licensing procedures
The Bangko Sentral ng Pilipinas (BSP) has made it easier for banks to apply for special licenses for establishing branches to encourage more network expansion.
In a statement, the BSP said they have revised guidelines that streamlined the licensing requirements from the setting up of regular branches, branchlite units or BLU, and other special authorities. It said that the approval process is a riskbased approach to “promote ease of doing business.”
The revisions covered the classification of licenses for special authorities such as Types A, B and C licenses. “The requirements set out for each category are proportionate to the magnitude of risks that may arise from engaging in a specific activity and take into account the capability of the BSFI (BSP-supervised financial institutions) to manage the risks.”
The changes are in the standard documentary requirements and fee structure for all licensing applications. For example, for areas that the BSP previously tagged as restricted locations such as Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, Quezon and San Juan, the special licensing fee for branches and BLU has been removed. This is to “encourage BSFIs to expand their branch network and consumer touch points and ultimately promote financial inclusion.”
The approved guidelines cover the first set of special authorities with streamlined licensing requirements, added the BSP, and this is to “promote efficiency and reduce business costs.”
In the statement, the BSP said “activities with Type A license that include establishment and sale of branches/BLU, equity investment in allied and nonallied undertaking, trust and other fiduciary business, among others, are likely to expose the BSFI to increased risks.”