Guidelines on Voluntary Surrender of a Banking License

September 18, 2019BSP CIRCULAR NO. 1050-19SUBJECT : Guidelines on Voluntary Surrender of a Banking License The Monetary Board, in its Resolution No. 1313 dated 29 August 2019, approved the following guidelines on voluntary surrender of a banking license and the corresponding amendments to the relevant provisions of the Manual of Regulations for Banks (MORB).SECTION 1. Chapter I of Part One of the MORB on "Liquidation and Receivership" is hereby retitled as "Cessation of Banking Business."SECTION 2. Section 191 of the MORB is hereby amended, as follows:191. VOLUNTARY SURRENDER OF A BANKING LICENSEPolicy Statement. Cognizant that the business of banking is imbued with public interest, it is the thrust of the Bangko Sentral to ensure that no depositor or creditor interest is prejudiced when a bank voluntarily surrenders its banking license. Toward this end, the following guidelines shall be observed when a bank decides to voluntary surrender its banking license either with a view to proceed to voluntary dissolution and liquidation or with the intention to convert into a non-bank entity. These guidelines, however, shall not...