Paper
Philippines: Circular No. 273 Series of 2001
Partial lifting of the moratorium on the licensing of new thrift and rural banks for micro finance
2 pages
This paper lists down the criteria for establishing microfinance banks:
- Microfinance banks shall be either thrift banks or rural banks;
- Capital of these banks should be owned by:
- Private persons,
- Multilateral entities,
- Combination of both;
- At least 50% of the bank's gross loan portfolio shall consist of microfinance loans;
- The capitalization requirement under existing regulations shall apply to rural and thrift banks;
- The requisite documents should be submitted for establishment of microfinance-oriented banks.
Finally Section 2, 3 & 4 of the Circular detail the following:
- Exemption of microfinance oriented banks from the general moratorium on the establishment of bank branches;
- Permission to existing microfinance organizations, applying to establish microfinance-oriented banks, to convert the existing branches into branches of the bank on fulfilling the standard requirements;
- Specifications of the qualification for the President, Chief Operating Officer, or General Manager of a rural/Thrift bank.
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