RP bank capital raised

RP bank capital raised

MANILA (Reuters): The Philippine central bank is willing to consider a proposal to boost banks' minimum capital requirements to strengthen the banking system, a top official of the incoming government said yesterday.

Banker Edgardo Espiritu, appointed finance secretary by newly elected President Joseph Estrada, told reporters central bank governor Gabriel Singson was "open" to his capital build-up proposal.

Estrada and his government are due to take office on June 30.

Espiritu said there was a need to strengthen the banking system so it could attract more foreign investors and encourage family-owned banks to list on the stock exchange.

The minimum paid-up capital requirement of universal banks -- or banks which perform non-banking functions such as investing in real estate -- now stands at 5.5 billion pesos (US$143 million). For regular commercial banks, the minimum capital is 2.8 billion pesos.