Bangko Sentral offers perks for bank mergers, acquisitions
MANILA – The Bangko Sentral ng Pilipinas (BSP) is offering perks to players taking part in the consolidation of lenders to boost competitiveness in the industry.
In Memorandum No. M-2016-023, the central bank said the offer aims to further strengthen the financial capabilities and enhance the overall competitiveness of the industry.
“Concerned banks or quasi banks may request regulatory incentives that are responsive to their specific needs and reasonable given the attendant circumstances,” BSP deputy governor Nestor Espenilla Jr. said in the memo.
Possible incentives include revaluation of premises, improvements, and equipment as well as the staggered recording of unbooked valuation reserves for up to five years, Espenilla said.
Participants would also be entitled to temporary relief from minimum capital requirements.
The BSP has ordered the closure of 22 problematic banks this year more than the 14 banks shut in 2015.
Nine foreign players have also entered the Philippines since former President Benigno Aquino liberalized the sector.
These banks include Sumitomo Mitsui of Japan, Shinhan Bank of South Korea, Cathay United Bank of Taiwan, the Industrial Bank of Korea, Yuanta Bank of Taiwan, and the United Overseas Bank Ltd. of Singapore, Seoul-based Woori Bank, First Commercial Bank of Taiwan, and Hua Nan Commercial Bank Ltd. of Taiwan.