June 21, 2013

BSP CIRCULAR NO. 802-13

 

The Monetary Board, in its Resolution No. 811 dated 16 May 2013, approved the amendment of Section X156 of the MORB on the submission to the BSP of the notice of intended closure of banks and/or their branches or other offices due to local holidays, as follows:

a. First paragraph to read, as follows:

"Banks and/or their branches, extension offices (EOs) or other banking offices (OBOs), doing business in the Philippines, shall observe for the conduct of their business a regular banking week of five (5) days, except when such days are non-working holidays, including local holidays, declared by Presidential Proclamations. The regular banking week should fall on Mondays to Fridays unless otherwise authorized by the BSP in the interest of the banking public. On these days, said institution shall transact business for at least six (6) hours each day."

b. Second paragraph to read, as follows:

"Subject to compliance with other relevant laws, banks and/or their branches, EOs or OBOs, may opt to observe a banking week in excess of the five (5) days after reporting to the BSP the additional days during which such banks or their branches or offices shall transact business for at least three (3) hours each day."

c. Third paragraph to read, as follows:

"Banks and/or their branches, EOs or OBOs are allowed to close on certain days in celebration of important historical and/or religious events in the locality where these banks operate, even in the absence of a Presidential Proclamation approving the local holiday; Provided, That said closure has the prior approval of the bankers' association in the locality and in the case of bank branches, their respective head offices; Provided, further, That said closure will only be allowed in the municipality or city where the festivities are centered; Provided, finally, that banks and/or their branches, EOs or OBOs shall submit, either individually or through their head offices, to the Supervisory Data Center, a prior notice of their intended closure on account of a specific local festivity not covered by a Presidential Proclamation, at least two (2) working days before the intended date of closure."

d. Fourth paragraph is deleted since it was included as a condition in third paragraph.

e. Subsequent paragraph to read, as follows:

"The required notice under the previous paragraph shall be supported by a certification jointly signed by the President of the bank or officer of equivalent position and the head of the branches department, if any, that:

a) On the date of the temporary closure, the bank and/or their branches, EOs or OBOs which are microfinance-oriented/micro-banking office will maintain a skeletal force to handle "out-of-town" clearing items in line with the provisions of Section X205;

b) The notice of the bank's closure and the reason thereof shall be posted conspicuously in the bank's premises; and

c) For branches of banks, the closure has the prior approval of their respective head offices.

The copy of the resolution of the local bankers association and in the case of bank branches, their respective head offices, approving said closure shall be filed in the premises of the banking unit concerned, which resolution shall be made available during on-site examination or when required by the BSP for submission for offsite verification."

f. Last paragraph is added, as follows:

"In cases of closure of the bank and/or their branches/EOs/OBOs due to approved local holidays covered by a Presidential Proclamation, no notice of temporary closure to the BSP shall be required."

This Circular shall take effect 15 calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.

FOR THE MONETARY BOARD:

(SGD.) DIWA C. GUINIGUNDOOfficer-in-ChargeBangko Sentral ng Pilipinas