Commercial Bank Universal Bank
Powers - All such powers as may be
(in addition to the general necessary to carry on the
powers incident to business of commercial
corporations) banking, such as:
o Accepting drafts and
issuing letters of credit
o Discounting and
negotiating promissory
notes, drafts, bills of
exchange, and other
evidences of debt
o Accepting or creating
demand deposits
o Receiving other types of
deposits and deposit
substitutes
o Buying and selling
foreign exchange and
gold or silver bullion
o Acquiring marketable
bonds and other debt
securities
o Extending credit subject
to Monetary Board
rules1 [Sec. 29, General
Banking Law (“GBL”)]
- invest in the equities of
allied enterprises as
provided in Sections 31 and
32 of R.A. No. 8791
- purchase, hold and convey
1
Sec. 29, General Banking Law
Thrift Bank
- All powers authorized for a
commercial bank
- the powers of an
investment house (IH) as
provided under existing
laws
- the power to invest in non-
allied enterprises
- the power to own up to one
hundred percent (100%) of
the equity in a Thrift Bank,
a Rural Bank, a financial
allied enterprise, or a non-
financial allied enterprise
- in case of publicly-listed
Universal Banks, the power
to own up to 100% of the
voting stock of only one (1)
other Universal Banks or
Commercial Bank.
Rural Bank
- grant loans, whether
secured or unsecured
- invest in readily marketable
bonds and other debt
securities, commercial
papers and accounts
receivable, drafts, bills of
exchange, acceptances or
notes arising out of
commercial transactions
- issue domestic letters of
credit
- extend credit facilities to
private and government
employees
- extend credit against the
security of jewelry,
precious stones and articles
of similar nature, subject to
such rules and regulations
as the Monetary Board may
prescribe
- accept savings and time
deposits
- rediscount paper with the
Land Bank of the
Philippines (LBP),
Development Bank of the
Philippines (DBP), and
other government-owned
or -controlled corporations
- extend loans and advances
primarily for the purpose
of meeting the normal
credit needs of farmers,
fishermen or farm families
as well as cooperatives,
merchants, private and
public employees
- accept savings and time
deposits
- act as correspondent of
other FIs
- rediscount paper with the
LBP, DBP or any other
bank, including its
branches and agencies.
Said banks shall specify the
nature of paper deemed
acceptable for rediscount,
as well as the rediscount
rate to be charged by any
of these banks
- act as collection agent
- acquire readily marketable
bonds and other debt
securities
- offer other banking
services as provided in
Section 53 of R.A. No. 8791
- buy and sell foreign
exchange.
 real estate as specified
under Sections 51 and 52 of
R.A. No. 8791
- receive in custody funds,
documents and valuable
objects; Manual of
Regulations for Banks – Part
One Page 2 (d) act as
financial agent and buy and
sell, by order of and for the
account of their customers,
shares, evidences of
indebtedness and all types
of securities;
- make collections and
payments for the account of
others and perform such
other services for their
customers as are not
incompatible with banking
business
- upon prior approval of the
Monetary Board, act as
managing agent, adviser,
consultant or administrator
of investment
management/
advisory/consultancy
accounts
- rent out safety deposit
boxes
- engage in quasi-banking
functions.
- accept foreign currency
deposits as provided under With prior approval of the
R.A. No. 6426, as amended Monetary Board:
- act as correspondent for - accept current or checking
other financial institutions accounts: Provided, That
(FIs) such RB has net assets of at
- purchase, hold and convey least P5.0 million
real estate as specified - accept negotiable order of
under Sections 51 and 52 of withdrawal (NOW)
R.A. No. 8791 accounts
- offer other banking services - act as trustee over estates
as provided in Section 53 of or properties of farmers
R.A. No. 8791 and merchants
- buy and sell foreign - act as official depository of
exchange. municipal, city or
provincial funds in the
With prior approval of the municipality, city or
Monetary Board: province where it is located
- open current or checking - sell domestic drafts
accounts - invest in allied
- engage in trust, quasi- undertakings.
banking functions and
money market operations
- act as collection agent for
government entities,
including but not limited
to, the Bureau of Internal
Revenue (BIR), Social
Security System (SSS) and
the Bureau of Customs
(BOC)
- act as official depository of
national agencies and of
municipal, city or

Capitalization Requirements
The term capital shall be
synonymous to unimpaired
capital and surplus, combined
capital accounts and net worth
and shall refer to the total of
the unimpaired paid-in
capital, surplus and
undivided profits, less:
a. Unbooked valuation
reserves (now referred to as
allowance for credit losses)
and other capital adjustments
as may be required by the
Bangko Sentral;
Head Office Only – Php 2
Billion
Up to 10 branches – 4 Billion
11 to 100 branches – 10 Billion
More than 100 branches – 15
Billion
Head Office Only – Php 3
Billion
Up to 10 branches – 6 Billion
11 to 100 branches – 15 Billion
More than 100 branches – 20
Billion
provincial funds in the
municipality, city or
province where the TB is
located
- issue mortgage and chattel
mortgage certificates, buy
and sell them for its own
account or for the account
of others, or accept and
receive them in payment or
as amortization of its loan
- invest in the equity of allied
undertakings
- issue foreign letters of
credit
- pay/accept/negotiate
import/export draft/bills
of exchange.
Head Office in National Head Office in NCR
Capital Region (NCR) Head Office Only – 50 million
Head Office Only - P500 Up to 10 branches – 75 million
million 11 to 50 branches -100 million
Up to 10 branches – 750 More than 50 branches – 200
million million
11 to 50 branches – 1 billion
More than 50 branches – 2 Head Office in All Other
billion Areas Outside NCR (All Cities
up to 3rd class municipalities)
Head Office in all Other Areas Head Office Only – 20 million
Outside NCR Up to 10 branches – 30 million
Head Office Only – 200 11 to 50 branches – 40 million
million More than 50 branches – 80
Up to 10 branches – 300 million
million
b. Total outstanding 11 to 50 branches – 400 million Head Office in All Other
unsecured credit More than 50 branches – 800 Areas Outside NCR (4th class
accommodations, both direct million to 6th class municipalities)
and indirect, to DOSRI Head Office – 10 million
granted by the bank proper; Only Up to 10 branches – 15
c. Total outstanding million
unsecured loans, other credit 11 to 50 branches – 20 million
accommodations and More than 50 branches – 40
guarantees granted to million
subsidiaries;
d. Total outstanding loans,
other credit accommodations
and guarantees granted to
related parties that are not at
arm’s length terms as
determined by the
appropriate supervising
department of the Bangko
Sentral;
e. Deferred income tax;
f. Appraisal increment reserve
(revaluation reserve) as a
result of appreciation or an
increase in the book value of
bank assets;
g. Equity investment of a bank
in another bank or enterprise,
whether foreign or domestic,
if the other bank or enterprise
has a reciprocal equity
investment in the investing
bank, in which case, the
investment of the bank or the
reciprocal investment of the
other bank or enterprises,
whichever is lower; and
h. In the case of RBs/Coop
Banks, the government
counterpart equity, except
those arising from conversion
of arrearages under the
Bangko Sentral rehabilitation
program
Investments in allied
enterprises
Investments in non allied
Real Property Limitations
Capital Adequacy
Reserve Requirements
Single Borrower’s Limit
Priority Lending
Requirements
BD Qualifications
DOSRI Loans / Affs / Subs
Loan Reserves
AML
Branch Opening