The Bangko Sentral ng Pilipinas has tightened rules for banks when accepting capital infusion from third-party investors, the Philippines' BusinessWorld reported May 18, citing Deputy Governor Chuchi Fonacier.
The central bank said in a May 10 circular that lenders must submit documents such as escrow deposits and certificates indicating strategic investors' committed investments in the bank.
Under the new rules, the regulator will no longer consider an investor's letter of intent as sufficient proof of commitment to invest in a bank, the report said.
The new rules came as higher capital and liquidity buffers are required of universal and commercial banks, in compliance with the Basel III framework.
Most major banks in the country have been building their capital base through stock rights offerings, medium-term notes and deposit certificates, the publication noted.
