Consolidation Program for Rural Banks (CPRB)

EIANGKO SeNInaL No PILIPINAS OFFICE OF THE DEPUTY GOVERNOR SUPERVISION AND EXAMINATION SECTOR ctRcurAR LETTER NO. Cr- 20t7- o33 To All Banks and Non-Bank Financial Institutions Subject : Consolidation Program for Rural Banks (CPRB) The Bangko Sentral ng Pilipinas (BSP), Philippine Deposit Insurance Corporation (PDIC), and Land Bank of the Philippines (LBP) have mutually agreed to approve the following amendments to the eligibility of the proponent banks under Section 5 of the CPRB lmplementing Guidelinesl through the inclusion of an additional paragraph and footnote, as follows: Existing Section 5 of CPRB lmplementing Proposed Amendments to Section 5 of the CPRB Guidelines lmplementing Guidelines Any group of at least five Proponent Any group of at least five Proponent Banks, the Banks, the head offices or majority of head offices or majority of the branches of the branches of which, shall preferably which, shall preferably be located in the same be located in the same region or area, region or area, and whose consolidation or and whose consolidation or merger merger would result in a Surviving Bank with - would result in a Surviving Bank with - (a) risk-based Capital Adequacy Ratio (RBCAR) of (a) risk-based Capital Adequacy Ratio at least 72To; and (b) A combined unimpaired (RBCAR) of at least L2%; and (bl A capital of at least P100 million. combined unimpaired capital of at least P100 Million. lf the Proponent Banks are less than five but based on the submitted documents, the Surviving Bank will have RBCAR of at least 12% and a combined unimpaired capital of at least F100 million, the application may be accepted, provided the Countryside Financial Institutions Enhancement Program (CFtEP) Technical Committeer will favorably endorse the said application, taking into consideration the objectives of the Program. tthe CflEp Technical Committee is composed of representatives from the Bangko Sentral ng Pilipinas, Philippine Deposit Insurance Corporation, and Land Bank of the philippines, ' lmplemented under Memorandum No. M-2015-043 dated 11. December 20i.5 A. Mabini st., Malate 1004 Manila, Philippines r (632) 7o8-770t. www.bsp.sov.ph r [email protected]

and is mainly tasked to monitor the implementation of CFIEP projects, including the CPRB. For guidance and implementation. ESTOR A. ESPENIT Deputy Governo lL MaY 20t7