The Philippine Deposit Insurance Corporation (PDIC) and the Bangko Sentral ng Pilipinas (BSP) amended certain terms of the Strengthening Program for Rural Banks (SPRB) recognizing the importance of the rural banking system in the delivery of financial services to the countryside.

The SPRB Plus, as amended, aims to strengthen rural banks and thrift banks serving the countryside and low income sector, through the grant of financial assistance (FA) by the PDIC, and the grant of regulatory reliefs and other incentives by the BSP, to the extent allowed under their existing laws.

The amendments to the SPRB Plus framework are as follows:

1. Extension of the SPRB Plus until 31 December 2015;
2. Increase in Program Fund by P10Bn (i.e., from P5Bn to P15Bn);
3. Reduction of the required ownership by the Strategic Third Party Investor (STPI) in an eligible bank from 67% to 60%;
4. Inclusion of newly established corporations as eligible STPIs;
5. Availability of the PDIC FA either in the form of (i) Direct Loan (DL) only or (ii) combination of Preferred Shares (PS) and DL [from the previous terms of under option (ii) only]; and
6. For Eligible Banks located in areas affected by typhoon Yolanda, increase in the amount of the PS component of the SPRB Plus FA to 100% of the required additional capital to bring the Eligible Bank's RBCAR to 10%.

Under the program's amended implementing guidelines (the "Guidelines"), Eligible STPIs merging, consolidating or acquiring Eligible Banks may avail of the program's benefits and/or incentives by submitting a letter of interest to both the PDIC and the BSP accompanied by the following:

1. Duly accomplished application form (SPRB Plus Form No. 1);
2. Request for FA from PDIC in accordance with the attached Guidelines;
3. Request for incentives from the BSP in accordance with the Guidelines on the Grant of Additional Incentives under the SPRB Plus, as amended, attached as Annex "A"; and
4. Documentary requirements as listed in Annex "B".

Applications may be sent to the following no later than 31 December 2015:

For further inquiries, please contact the SPRB Lane at 813-3605 or visit our website at www.pdic.gov.ph.

CRISTINA Q. ORBETA

President

08 May 2015

Attachments:
SPRB Plus Application Form 1
SPRB Plus Implementing Guidelines, including its Annexes
Annex A
Annex A-1
Annex B