Posted on March 30, 2011 09:06:09 PM
BSP deadline to reclassify OBOs looms
THE CENTRAL bank has reminded banks of an April 15 deadline to reclassify their “other banking offices” (OBOs), otherwise these offices will be classified as regular OBOs that can do only non-transactional activities.
The Bangko Sentral ng Pilipinas (BSP) issued Memorandum No. 19 dated March 29, 2011 that stated “banks are given up to 15 April 2011 to declare to the BSP the desired classification of their existing OBOs, otherwise, unclassified OBOs shall be automatically classified as regular OBOs after the said date.”
Last October 14, the BSP issued Circular No. 694 that allowed banks to reclassify OBOs into microfinance-oriented OBO (MF-OBO) or microbanking office (MBO), which primarily cater to microfinance clients or overseas Filipinos and their families.
BSP Deputy Gov. Nestor A. Espenilla Jr. in a text message yesterday said regular OBOs are bank offices that are limited to non-financial transactions such as marketing, customer care services, information dissemination and acceptance of loan applications, among others.
MF-OBOs or MBOs, on the other hand, are authorized to accept microdeposits; extend microloans; sell microinsurance products; receive and disburse remittances; collect premiums for the Social Security System, Government Service Insurance System and other social security institutions; disburse the benefits under the government’s conditional cash transfer program; accept utility payments; and purchase foreign exchange.
The move allowing banks to reclassify OBOs into MF-OBOs or MBOs or to set up such offices was intended to allow banks to reach the unbanked without setting up branch offices, which would be costly.
Many banks have signified interest in setting up MF-OBOs or MBOs, Mr. Espenilla said.
“Following the issuance of [Circular 694 in late 2010], 39 banks have applied, representing 486 that are for conversion from OBO to MBOs, 43 are for new MBOs,” Mr. Espenilla said in a text message.
“Over 280 have been approved while others are in the evaluation pipeline.”
In a phone interview with BusinessWorld yesterday, BPI Globe BanKo President Teresita B. Tan said BanKO plans to apply for 17 MBOs this year, but “plans have yet to be finalized next month in our board meeting.”
Data from the BSP Supervisory Data Center (SDC) showed that as of end-December, there were 709 OBOs, up from 679 OBOs in 2009. -- Ann Rozainne R. Gregorio
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CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.wordpress.com
CONSULTING - http://www.carlosani.com
My Clippings - http://www.myclipps.posterous.com
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