MORNBFI Vol. 1 - Planters Development Bank

§§ 4151Q - 4151Q.508.12.31I. BRANCHES AND OTHER OFFICESSec. 4151Q Establishment. Prior BSPauthority shall be obtained beforeoperating a branch, extension office oragency, including any arrangementwhereby another person or entity isauthorized to act as an agent forsolicitation, issuance or servicing ofdeposit substitutes for the QB.Agency arrangements shall refer to allor any type of services to be performedby another party as an agent other thancollection agency for loans payable ininstallments/amortization, and payingagency under a definite and specific periodfor purposes of redeeming long-term notesand/or bonds.§ 4151Q.1 Evaluation guideposts. Therate at which branches, agencies, extensionoffices, etc. are to be established shalldepend upon the ability of the companyto conduct operations from the head office,as well as correspondent/bankingarrangements.§ 4151Q.2 Additional capital, ifrequired. An applicant QB may berequired to put up additional capital in anamount to be determined by theappropriate department of the SES, basedon criteria which consider expectedgrowth of risk assets and capital accountsand for this purpose, the methods ofcomputing such additional capital, asshown in Appendix Q-2, shall be used.§ 4151Q.3 Other requirements/factorsto be considered. Other requirements/factors to be considered are the applicantQB’s general compliance with laws, rules,and regulations, and policies of the BSP,such as:a. Capital adequacy and solvency;b. Profitability and capacity to absorblosses; andc. Reserve and liquidity position.§ 4151Q.4 Conditions precludingprocessing of applications. The existenceof any of the following conditions shallpreclude/suspend the processing of theapplication:a. The applicant has not complied withthe ceilings on credit accommodations toDOSRI during the last sixty (60) daysimmediately preceding the date ofapplication;b. The net worth of the applicant isfound to be deficient during the last sixty(60) days immediately preceding the dateof application; andc. The applicant has incurred netdeficiencies in reserves against depositsubstitute liabilities during the last eight (8)weeks immediately preceding the date ofapplication.§ 4151Q.5 Documentary requirementsAll applications shall be supported by thefollowing documents:a. Ability to conduct operations fromthe head office as not to be a cause fordelayed submission of reports to the BSPand/or recording of transactions in the headoffice;b. Correspondent banking and auditarrangements between the branch and thehead office to ensure effective and efficientcash/money transactions;c. Certified true copy of the boardresolution authorizing the establishment ofa branch;d. Services to be offered, as well asany extension offices, etc. to be opened;e. Days and hours to be observed;f. Areas to be served;g. Bio-data of the proposed branchmanager and organizational chart;Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 45