RP tightens new bank rules

RP tightens new bank rules

MANILA (Reuters): The Philippine central bank has issued tighter guidelines for the establishment of new banks as part of its efforts to strengthen the banking system, an official document released yesterday said.

The guidelines require all shareholders with more than five percent of a new bank to submit their statements of income and expenses for the last three years as proof that their capital "came from legitimate sources."

The shareholders must also present evidence of their assets such as bank statements, bond, share and property holdings and tax declarations.

A new bank "must have suitable shareholders, adequate financial strength, a legal structure in line with its operational structure and a management with sufficient expertise to operate the bank in a sound and prudent manner," the document stated.