August 6, 1973
CBP MEMORANDUM
TO : All Commercial Banks
The Monetary Board, in its Resolution No. 1458 dated August 3, 1973, approved the attached "SUPPLEMENT TO THE GUIDELINES ON INCREASED CAPITALIZATION AND MERGER OR CONSOLIDATION OF COMMERCIAL BANKS" intended to clarify certain matters contained in the Guidelines as approved by the Monetary Board in its Resolution No. 1223 dated July 6, 1973. aisadc
(SGD.) G. S. LICAROS
Governor
SUPPLEMENT
TO THE
"GUIDELINES ON INCREASED CAPITALIZATION AND MERGER OR CONSOLIDATION OF COMMERCIAL BANKS"
CONTENTS
I. INCREASING BANK CAPITALIZATION
A. Program of Capital Build-Up
A.1 Definition of capital gap
A.2 Program of a bank with P100 million capital accounts
A.3 Program of a bank with less than P100 million capital accounts
B. Paid-In Capital
B.1 Capital contributions
B.2 Convertible preferred shares
B.3 Paid-in surplus
B.4 Stock dividends
C. Purchase of Outstanding Shares in an Existing Bank
C.1 By a new investor
C.2 By a stockholder in the same bank
D. Local Branching Privileges
II. FOREIGN EQUITY INVESTMENT IN DOMESTIC BANKS
A. Equity Investment by Foreign Banks and/or their Affiliates
A.1 Foreign banks with local branches
A.2 Foreign banks without local branches
B. Counterpart Foreign Currency Loan or Other Investment
B.1 In general
B.2 Composition of the...