Bank of the Philippine Islands (BPI), the banking arm of the Ayala Group, has been hit with a P1 million fine by the Bangko Sentral ng Pilipinas (BSP) for its failure to timely reduce its authorized capital stock.
The penalty was imposed due to BPI’s non-compliance with the General Banking Law of 2000 concerning the disposal of its Treasury shares related to its merger with BPI Family Savings Bank Inc.
In a regulatory filing, the Ayala-led bank disclosed that it had been penalized by the BSP for its failure to meet the necessary requirements within the specified timeframe. The fine comes as a result of BPI’s decision to abandon its plan to retire Treasury shares following the merger with its thrift banking arm.
The disclosure made on September 29 of the previous year came after the BSP rejected BPI’s request to divest treasury shares associated with its merger with BPI Family Savings.
