BPI subsidiary gives up quasi-banking license
The Bangko Sentral ng Pilipinas has approved the request of BPI Leasing Corp., a subsidiary of Bank of the Philippine Islands, to have its quasi-banking license revoked.
Through Circular 2013-003, the central bank notified industry members that the Monetary Board had approved the revocation BPI Leasing’s quasi-banking license.
BSP Deputy Governor Nestor Espenilla Jr. said BPI Leasing might have found it prudent to have its quasi-banking license revoked given its growing liquidity.
“The revocation of the license means BPI Leasing can no longer borrow from more than 20 creditors. This also means it will no longer have to submit various regulatory requirements to the BSP,” Espenilla said.
“It’s a business strategy. They believe they no longer need the license because they don’t need to borrow so much,” Espenilla said.
Under BSP regulations, financial entities must observe the 20-lender rule, which requires them to secure a quasi-banking license if they intend to borrow funds from at least 20 creditors to support their operations.
Holders of quasi-banking licenses are under close monitoring by the BSP and are required to submit documentary and observe other regulatory requirements.
The move of BPI Leasing to give up its quasi-banking license came amid the continued growth of BPI, one of the biggest banks in the country.
BPI earlier reported a 52-percent jump in its net income for the first half of 2012 to P9.4 billion from P6.2 billion in the previous year.—Michelle V. Remo
