BSP toughens rules for voluntary bank closures
The Bangko Sentral ng Pilipinas (BSP) is tightening screws on the banking sector to further protect the public from banks which voluntarily apply for cessation of their business.
Under the BSP’s new rules, only banks that are in “sound financial condition” could surrender their license and cease operations in the Philippines.
“At the minimum, the applicant bank will ensure immediately accessible funds equivalent to its outstanding deposit obligations to provide assurance on the repayment of depositors,” the central bank said.
The BSP noted that it could still “impose sanctions on bank directors, officers and employees who would be found to have violated banking laws, rules and regulations.”