PDIC issues guidelines to streamline bank MCA applications

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The Philippine Deposit Insurance Corporation (PDIC) today issued the Application Guidelines for the Streamlined Procedures for Bank Mergers, Consolidations and Acquisitions (MCA) Applications to guide banks intending to merge or consolidate with, or acquire the assets and to assume the liabilities of another bank.

The application guidelines cover the procedures for submitting applications by proposing banks, the process for assessing the completeness of the documents they have submitted, and the process for assessing the MCA application.

The PDIC launched the MCA project to align with the government’s desire to promote the ease of doing business. This project concerns the harmonization of requirements and the synchronization of deadlines in the processing of MCA proposals from banks. This resulted in a significant reduction in the number of document requirements from 58 to just 30 and a shortening of the average processing time for MCA applications from 160 to just 55 working days. In order to promote transparency and dialogue, an exposure draft of the implementing guidelines has been made available in advance to the banking sector and the general public for comments.

The implementing guidelines are aligned with the provisions of the Inter-Agency Memorandum of Understanding on Application Procedures for Bank Mergers, Consolidations and Acquisitions signed by the Implementing Agencies on October 29, 2021.

The publication of the application directives is covered by a joint circular which takes effect 15 days after the date of publication. The PDIC, Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, and Philippine Competition Commission are the implementing agencies for the new guidelines for MCA proposals. The guidelines are also posted on the agencies’ respective websites for reference.

The PDIC remains committed to promoting the strengthening of the country’s banking system in support of its public policy objectives of depositor protection and financial stability.


The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain the stability of the financial system by providing deposit insurance. As of June 1, 2009, the maximum deposit insurance coverage is 500,000 pesos per depositor. All deposit accounts of a depositor in a closed bank held in the same right and capacity are added together. A joint account must be insured separately from any individual deposit account.

PDIC news/press releases and other information are available on the website, www.pdic.gov.ph.

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