BANGKO Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla, Jr. and Philippine Competition Commission (PCC) Chairperson Arsenio M. Balisacan signed a memorandum of agreement (MOA) between the BSP and PCC.
Under the MOA, mergers and acquisitions of BSP-supervised financial institutions (BSFIs) under financial distress and those pursued in accordance with BSP’s Consolidation Program for Rural Banks will be subject to specific rules on prior notification and review requirements of the Philippine Competition Act (PCA) to facilitate expeditious action. Such rules will be promulgated by the PCC in consultation with the BSP.
Provisions
In the spirit of cooperation, the BSP and PCC also agreed to monitor pricing, mergers, acquisitions and other competition-related issues with regard to BSFIs, their payment system arrangements, and other activities regulated by BSP; and to promptly notify the other of any actual, potential or emerging competition concerns relating thereto in the course of their performance of their respective duties and functions.
They also undertake to consult each other on the formulation of new issuances, regulations and/or amendments to existing regulations that may impact the policy and regulatory framework governing BSFIs.
They will likewise endeavor to hold consultative meetings on matters of common concern such as actions that the PCC is considering with respect to BSFIs, those involving competition-related matters and the stability of the monetary and financial system.
Present at the MOA signing were Monetary Board Member Juan D. De Zuñiga, BSP Deputy Governor Chuchi G. Fonacier and Assistant Governor Restituto C. Cruz. (PR)