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BSP Circular No. 373 (2003)

SERVICES BY A BANK IN FAVOR OF SUBSIDIARIES, AFFILIATES AND COMPANIES RELATED TO IT BY AT LEAST 5% COMMON OWNERSHIP

BSP Circular · February 27, 2003

(NAR) VOL. 14 NOS. 1-2 / JANUARY - MARCH 2003

[ BSP CIRCULAR NO. 373, February 27, 2003 ]

SERVICES BY A BANK IN FAVOR OF SUBSIDIARIES, AFFILIATES AND COMPANIES RELATED TO IT BY AT LEAST 5% COMMON OWNERSHIP

In implementation of Section 53.3 of Republic Act No. 8791 (The General Banking Law of 2000, a bank may be authorized, upon prior Monetary Board approval, to render the following services in favor of subsidiaries, affiliates and companies related to it by at least 5% common ownership:

a. Credit card, bank and loans reconciliation;

b. Credit card billing;

c. Time deposit processing;

d. Merchant settlement and care service;

e. Collectors;

f. Credit application processing;

g. Call center support;

h. Telemarketing of bank and credit card products;

i. Human resource-related service;

j. Finance/accounting functions;

k. Documentation;

l. Cashiering;

m. Reports preparation; and n. Safekeeping of securities; subject to the following conditions;

i. The particular type of service to be rendered by the bank should be submitted for prior approval of the Monetary Board;

ii. As service provider, the following shall be upheld by the bank:

a) Confidentiality of bank deposits and investment in government bonds (R.A. No. 1405);

b) Prohibition against outsourcing of inherent banking functions [Section 55.1 (e) of R.A. No. 8791 and Circular No. 268]; and c) Prohibition on cross-selling except as allowed under applicable regulations. This Circular shall take effect after fifteen (15) days following the completion of its publication in any newspaper of general circulation.Adopted: 27 Feb. 2003

(SGD.) RAFAEL B. BUENAVENTURA Governor

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