One of the state-run banks which contributed funds to the Maharlika Investment Corp. (MIC) is now seeking regulatory relief from the Bangko Sentral ng Pilipinas, Governor Eli Remolona said Wednesday.
MIC is a corporate investment body that will manage the Maharlika Investment Fund (MIF).
Remolona did not identify the bank, but Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) earlier contributed P50 billion and P25 billion, respectively to the sovereign fund.
The BSP usually extends regulatory relief to financial institutions affected by calamities. Such relief can be in the form of relaxed regulations, lower fees or exemptions from specific requirements to help ease the cost burden of complying with regulations.
Finance Secretary Benjamin Diokno was pushing for the merger of LandBank and DBP.
“Yes [one of them asked for relief],” Remolona said, although he did not identify which of the two banks filed for regulatory relief.
Remolona also said the two state-run banks remained compliant in terms of capitalization.
“In principle, we can provide forbearance,” Remolona said.
MIC has an initial capitalization of P125 billion. LandBank and DBP already transferred their contributions, as the founding government financial institutions to the account of the Bureau of the Treasury.
LandBank deposited its share on Sept. 14, while DBP remitted its contribution on Sept. 15.
Diokno said President Ferdinand Marcos Jr. might announce his appointees in MIC soon.
MIC has a nine-member board of directors which consists of the Secretary of Finance as the chairperson in an ex-officio capacity; president and CEO of MIC; president and CEO of the Land Bank of the Philippines; president and CEO of DBP; two regular directors appointed by the President for a term of three years; and three independent directors from the private sector, appointed by the President for a term of one year.
Diokno remained optimistic that the MIF would be fully operational by the end of 2023.
The remaining P50 billion of MIC’s initial capitalization will come from the national government. One of the sources is the Bangko Sentral ng Pilipinas dividend remittance. The BSP already remitted P31.859 billion to the Treasury in 2023.