Amendments to Regulations on Deposit for Stock Subscription of Banks/Quasi-Banks

July 25, 2012BSP CIRCULAR NO. 762-12SUBJECT : Amendments to Regulations on Deposit for Stock Subscription of Banks/Quasi-BanksThe Monetary Board in its Resolution No. 1092 dated 5 July 2012 approved the following guidelines on the treatment of deposit for stock subscription of banks and quasi-banks (QB): SECTION 1. Section X128/4137Q and related subsections of the Manual of Regulations for Banks (MORB)/Manual for Regulations for Non-Bank Financial Institutions (MORNBFI) shall be added to read as follows:"Section X128/4137Q Deposits for stock subscription. — Deposits for stock subscription refer to payments made by existing stockholders or new subscribers of the bank/QB on subscription to the increase in the authorized capital, which may be recognized either as a liability or equity."Deposits for stock subscription shall be recognized as part of equity for prudential reporting purposes when all of the following conditions are met:"a. The deposit for stock subscription meets the definition of an equity instrument under Philippine Accounting Standards 32 Financial Instruments: Presentation such that the deposit for stock subscription shall not be interest-bearing nor withdrawable by the subscriber. ITcCSA"b. ...