Five financial regulators have agreed to streamline banks’ merger, consolidation, and acquisition (MCA) processes to strengthen government’s long-standing fight against red tape or over-regulation that hinders businesses.
The regulators essentially agreed to simplify and trim procedures from 58 documentary requirements to just 30. They also agreed to cut the processing time of MCA proposals to 55 business days versus 160 days currently being implemented.
The Bangko Sentral ng Pilipinas (BSP) in a statement Friday, Nov. 5, said that its banking co-regulator, Philippine Deposit Insurance Corp. (PDIC) has initiated the multi-agency project, which it said is “the first of its kind among financial regulators” and it “aims to harmonize the requirements and synchronize the timelines in the processing of MCA proposals of banks.”
A memorandum of agreement was recently signed by BSP Governor Benjamin E. Diokno, PDIC President and CEO Roberto B. Tan, Securities and Exchange Commission Chairperson Emilio B. Aquino, Cooperative Development Authority (CDA) Chairperson Joseph B. Encabo, and Philippine Competition Commission (PCC) Chairperson Arsenio M. Balisacan.
The MOA covered the procedures for the applications of MCA proposals of banks. The five regulators agreed to collaborate to promote the ease of doing business in the country.
The implementing guidelines on the procedures for MCA applications will subsequently be issued via a joint circular by the partner-agencies, said the BSP.
“The agreement embodies the responsibilities and commitments of each of the regulators on the simplified requirements and streamlined procedures and timelines in processing of MCA applications,” the BSP added.
The regulators agreed to have a harmonized list of requirements for MCA proposals of banks.
“(This) will effectively cut in half the number of documentary requirements from 58 to only 30,” said the BSP.
BSP et al also agreed to synchronize timelines and eliminate duplicate functions among them to reduce the total processing time of MCA proposals from an average of about 160 business days to only 55, said the central bank.
The project has been commended by the Anti-Red Tape Authority.
Source: Manila Bulletin (https://mb.com.ph/2021/11/05/bsp-other-regulators-simplify-banks-merger-consolidation-and-acquisition/?utm_source=rss&utm_medium=rss&utm_campaign=bsp-other-regulators-simplify-banks-merger-consolidation-and-acquisition)
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