Wednesday, January 7, 2015
BSP: MORE POWERS TO CO-OP BANKS
The Bangko Sentral ng Pilipinas (BSP) has granted expanded powers to Co-op Banks, under Circular No. 865, series of 2014. Issued last Dec. 22, 2015, the Circular contains amendments to Section X101 of the Manual of Regulations for Banks.
Published in a newspaper, the Circular says that "..while a Co-op Bank shall primarily provide financial, banking and credit services to cooperatives, and their members, it may provide the same to non-members or the general public..."
TO RURAL BANKS'
In addition to the powers granted to Co-op Banks under existing laws, any Co-op Bank may perform any or all of the banking services offered by rural banks under Item 4.a to 4.g, as contained Circular No. 865, says the Circular.
Such services include: offer other banking services as provided in Section 53 of R.A. No. 8791; and buy and sell foreign exchange.
"A Co-op Bank may likewise perform any or all of the banking services offered by rural banks under Item 4.h to 4.m, as well as any or all of the banking services offered by other types of banks, subject to prior approval of the BSP."
The banking services referred to (Item.h to 4.m) are:
(h) accept current or checking accounts: Provided such Rural Bank has net assets of at least P5.0 million;
(i) accept negotiable order of withdrawal (NOW) accounts;
(j) act as trustee over estates of farmers and merchants;
(k) act as official depository of municipal, city or provincial funds in the municipality, city or province it is located;
(l) sell domestic drafts; and
(m) invest in allied undertakings.
The Circular shall take effect fifteen (15) days following its publication in the Official Gazette, or in a newspaper of general circulation. This was published in Manila Bulletin, Jan. 8, 2015, p. B-3. (END).