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.