BSP ups minimum capital of new thrift banks to P1 billion

The minimum capital of new thrift banks in Metro Manila is now P1 billion, from P500 million, making them competitive and the banking system stronger, the Bangko Sentral ng Pilipinas (BSP) said Tuesday. For new thrift banks with headquarters in Cebu and Davao, the minimum capital is now P500 million, from P52 million, the central bank said in a statement. "The new minimum capital requirement for thrift banks aims to further boost the capital base of the thrift banking system as well as enable new entrants to adequately take on the risks inherent in the increasingly sophisticated banking business and effectively compete with existing banks," the BSP said, citing its Monetary Board which approved the higher capital requirement. In areas outside Cebu, Davao, and Metro Manila, the minimum capital requirement for thrift banks was also raised to P250 million from P52 million. The latest rule on minimum capital requirement also applies to banks being converted into a thrift bank, as well as existing thrift banks moving their respective headquarters either to Cebu, Davao, or Metro Manila. — VS, GMA News