Strengthening Program for Cooperative Bank Plus (SPCB Plus)


The SPCB Plus is an incentive program which seeks to encourage mergers, consolidations and acquisition of cooperative banks (CBs) to strengthen the cooperative banking sector of the rural banking system, via grant of regulatory reliefs by BSP and Financial Assistance by PDIC and LBP. 

Incentives include leeway on certain regulations and financial assistance for participating eligible banks.


Program Components

  1. Financial Assistance

The participating banks shall have the option to avail any of the following:

  1. Equity investment in the form of preferred shares which will be provided by PDIC (to bring the capital adequacy ratio of the eligible CB from negative to 0%) and LBP (to bring the CAR of eligible bank from 0% to 10%) ;
  2. Direct Loans from PDIC; and
  3. Credit Facility from LANDBANK
  4. Financial Assistance

 2.  Regulatory Reliefs  from BSP (i.e., branching and other incentives  under the amended SPCB Plus Framework as may be approved by the  Monetary Board).


Eligibility Criteria  for Participating CBs

  1. With risk-based capital adequacy ratio (RBCAR) of less than 10%; and
  2. Merging, consolidating with, or to be acquired via Purchase of Assets and Assumptions of Liabilities (P&A) or through the acquisition of controlling shares by an eligible STPI.

Eligibility for Participating STPIs

For  Banks (CB, Rural Banks, Thrift Banks and Commercial Banks)

  1. BSP CAMELS rating of at least “3”;
  2. Not under BSP’s Prompt Corrective Action (PCA) Program for the past 3 years; and
  3. No findings of unsafe and unsound banking practices by the PDIC or BSP during the past 3 year/s.

For a Non-Bank Entity  (i.e, Primary Cooperatives/Cooperative Federation

1. With certificate or endorsement of good standing from the Cooperative Development Authority (CDA); and;

2. With proven track record based on audited financial statements.

Provided, that in all of the above modalities, the surviving bank must have a net worth of at least P100M and RBCAR of at least 15%. 

Features of Equity Investment (in Preferred Shares) to be provided by PDIC and LBP.


 Apportionment of amount of Preferred Shares to be subscribed by PDIC and LBP shall be as follows:

  • PDIC – up to 100% of the required additional capital to bring the eligible bank’s RBCAR from negative to 0%;
  • LBP – up to 100% of the additional capital required to bring the eligible bank’s RBCAR from 0% to 10%.

Dividend rate

Equal to the rate per annum of the prevailing 10-year FXTN available at the time of the release of equity investment


  • Non-voting, non-cumulative, convertible to common shares at the end of 10 years;
  • Perpetual
  • Entitlement to board seat in the surviving entity, as necessary.