Amendments to the Manual of Regulations for Banks and Non-Bank Financial Institutions as of 31 March 2017

E}ANOKO SENTRAL NG} PILIPINAS OFFICE OF THE GOVERNOR ctRcutAR No. 974 Series of 2OL7 Subject: Amendments to the Manual of Regulations for Banks and Non-Bank Financial Institutions as of 31 March 2017 The Monetary Board, in its Resolution No. 1570 dated 14 September 20L7, approved the following amendments to the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) as of 31 March 20t7. Section 1. The following statement is added as a footnote to Section X205. "The new check clearing process shall be implemented on 20 January 2Ot7. For participant banks which will not be compliant with the CICS standard on 20 January 20L7, they shall execute a Letter of Commitment stating, among others, the actions that they will be taking to be compliant with the CICS standard until 21 April2OL7." Section 2. Annex A of Appendix 89 (Regulatory Relief for Banks affected by Calamities) of the MORB and Annex A of Appendix Q-67 [Regulatory Relief for Non-Bank Financial lnstitutions with Quasi-Banking Functions (NBQBs) affected by Calamitiesl of the MORNBFI are amended to add the grant of regulatory relief to covered areas affected by typhoon "Nifia" pursuant to Memorandum No. M-2017-002 dated 18 January 2OL7 (Annexes A and A-1 of this Circular) Section 3. The Computation Sheet for Capital Repatriation (Annex B of this Circular) referred to under Circular No. 942 dated 20 January 2017 shall be incorporated as Attachment 1 of Appendix N-8-c. Section 4. The provisions under Memorandum No. M-2017-003 are codified in the MORNBFI P-Regulations as shown in Annex C of this Circular. FOR THE MONETARY BOARD: 21 September 2017 A. MabiniSt., Malate 1004 Manila, Philippines. (632) 708-77-0l owww.bsp.gov.pho [email protected]

ANNEX A App.89 Annex A tlST OF AREAS COVERED BY THE REGUTATORY RELIEF; INCIUSIVE DATES OF COVERAGE; AND IMPLEMENTING GUIDELINES ON THE RESTRUCTURING SCHEME (Footnote to Sections X257, X306, X338, Subsections X778.77, X269.6 ond X269.8) l. Areas that were Declared under State of Calamity: EL NINO a) 2010 xxx xxx xxx b) 2016 xxx XXX Lawin xxx NINA a. Region lV-A: Batangas, Cavite, Laguna, Quezon and Rizal b. Region lV-B: Marinduque, Occidental Mindoro, Oriental Mindoro and Romblon c. Region V: Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon d. Region Vlll: Northern Samar ll. Inclusive Dates of the Applicability of Temporary Relief to Banks Affected by Calamities For RBs/TBs/Coop Banks For all Rediscounting Banks Exclusion from GLL of only 1% Non- Non-imposition Moratorium Staggered 60-day grace computation for imposition of of penalties on on monthly booking of period to pay of past due restructured penalties for legal reserve payments due allowance for rediscounting loans ratio loans late deficiencies to the BSP loan losses for obligations submission of from reserve until loans outstanding as supervisory week ended / outstanding as of reoorts to of XXX XXX XXX XXX XXX XXX xxx XXX Lawin L0/19/2O16to 1O/t9/20tito 1O/L9/2O1.6to t0/25/2O76to 04/3O/L6 t0/19/2076 LOhg/20L6 L0/3r/2o77 r0/3t/2017 04/30/2017 04/25/2Or7 Nina L2/25/2O1.6to L2/25/20L6to L2/29/20L6to 06/3o/2017 12/2s/2016 L2/2s/2016 72/37/2OL7 06/30/20L7 06/29/2017

ANNEX A lll. lmplementing Guidelines on the Restructuring Scheme Covering the Rediscounting Obligations with the Bangko Sentral of Rediscounting Banks in the Areas Affected by Natural Calamities XXX XXX XXX F. Other provisions A. XXX XXX XXX XXX XXX XXX b. Effectivity date The loan settlement scheme shall be made available, as follows: XXX XXX XXX x) El Nifro (2016) - up to 1.3 November 2OL6; y) Lawin - up to 30 April 2OL7; and z) Nina - up to 30 June 2017 Page2 of 2

ANNEX A.1 App.Q-ez Annex A tlST OF AREAS COVERED BY THE REGULATORY RELIEF; INCLUSIVE DATES OF COVERAGE; AND IMPTEMENTING GUIDETINES ON THE RESTRUCTURING SCHEME (Footnote fo Subsection 4192Q.2 and Sections 4306Q and 4257Q) l. Areas that were Declared under State of Calamity: LUIS AND MARIO A. XXX XXX EL NINO xxx NINA a. Region lV-A: Batangas, Cavite, Laguna, Quezon and Rizal b. Region lV-B: Marinduque, Occidental Mindoro, Oriental Mindoro and Romblon c. Region V: Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon d. Region Vlll: Northern Samar ll. Inclusive Dates of the Applicability of Temporary Relief to Banks Affected by Calamities For RBs/TBs/Coop Banks For all Rediscounting Banks Exclusion from Gtt of only 1% Non- Non-imposition Moratorium Staggered 60-day grace computation for imposition of of penalties on on monthly booking of period to pay of past due restructured penalties for legal reserve payments due allowance for rediscounting loans ratio loans late deficiencies to the BSP loan losses for obligations submission of from reserve until loans outstanding as supervisory week ended / outstanding as of reoorts to of XXX XXX XXX XXX XXX XXX XXX XXX El Nifto for a period of for a period of NA for a period of for a period of declaration date declaration date (2016) one (1) year one (1) year one (1) year one (1) year ofa of a state of from from starting from state of calamity declaration date declaration date from reserve declaration calamity of a state of of a state of weex date of a state calamity calamity following the of including those declaration calamity loans becoming date of a past due six (6) state of months after calamity date of declaration Nina L2/2s/2o16to 72/2s/20r6to L2/29/2O76to 06/30/2or7 L2/2s/2016 t2/2s/2016 L2/3t/2077 06/30/2077 06129/2017

ANNEX A-1 lll. lmplementing Guidelines on the Restructuring Scheme Covering the Rediscounting Obligations with the Bangko Sentral of Rediscounting Banks in the Areas Affected by Natural Calamities XXX XXX XXX F. Other provisions A. XXX XXX XXX XXX XXX XXX b. Effectivity date The loan settlement scheme shall be made available, as follows: xxx xxx xxx e) El Nifio (2016)- up to 13 November 2016; and f) Nina - up to 30 June 2017 Page 2 ot 2

Annex B Attachment 1 COMPUTATION SHEET Name of FX FXD/MC: Date of FX Sale: TYPE OF OUTWARD REMITTANCE FOR INWARD FOREIGN INVESTMENT TRANSACTION D Remittance of Cash Dividends/Profits E Repatriation of Capital Name of Investee Firm: Name of lnvestor: A. REMTTTANCE OF CASH D|V|DENDS/PROF|TS Record Date (DDMMYWY): Payment Date (DDMMYWY): E Dividends TotalAmount in Php (A): No. of sharesl (B): Rate per share in Php (A/B): E Amount of Profits/Earnings due to investor: Base shares (Php)2 Dividend per Share TotalAmount (Php) A. Gross Peso Amount Remittable B. Less: Taxes/Charges C. Net Peso Amount Remittable {A - B) D. Foreign Exchange Applied for Remittance (C/FX rate3) 1 Refers to shares issued and outstanding as of record date 2 Outoftotal numberofsharesissuedandoutstandingasofrecorddate(infootnotel) 3 To be supplied by FX FXD/MC

Annex B B. REPATRIATION OF CAPITAT Total Amount/No. of Outstanding Balance Before Amount/No. of Shares Sharesa This Repatriation Applied for Repatriation A. Total No. of Shares/Amount Applied For Repatriation B. Selling Price/Share (if applicable) C. Gross Peso Amount Repatriable (A x B) D. Less: Taxes/Charges E. Net Peso Amount Repatriable (C - D) F. Foreign Exchange Applied for Repatriation (E/FX rate3) Prepared by: Signature over Printed Name Company Affiliation of lnvestor's of Authorized Representative Representative of Applicant Date a Refers to number of shares (for stock corporations) or amount (e.g. assigned capital, contributed capital)

Annex C Mapping of the Provisions of Memorandum No. M-2017-003 in the MORNBFI Provisions from Memorandum No. MORNBFI Title/New Title M-2017-003 P-Regulations Section/Subsection/ Appendix Item lA on Definitions, Qualifications, Section 4142P Definitions, Qualifications, and and Duties and Responsibilities of Duties and Responsibilities of P roprietor/ Partn e rslD i recto rslOffi ce rs P ropri etor/Pa rtn ers/D i recto rslOff i ce rs Item lA on Definitions Subsection 4142P.1 Definitions Item lB on Persons disqualified from Subsection 4'143P.1 Persons disqualified from becoming becoming directors directors Item lC on Persons disqualified from Subsection 4143P.2 Persons disqualified from becoming becoming officers officers Item lD on Disqualification procedures Subsection 4'143P.3 Disqual ification procedures Item lE on Effect of possession of Subsection 4143P.4 Effect of possession of disqualifications d isqualifications Item lF on Watchlistine Subsection 4143P.6 Watchlisting Item lC on Applicability of the Subsection 4'143P.7 Applicability of Section 4'143P to the guidelines on the disqualification of proprietor and managing partner of a directors/officers to the managing pawnshop (in the case of a sole proprietor and managing partner of a proprietorsh i p/partnersh i p) pawnshop (in the case of a sole proprietorsh i p/partnersh i p) Item llA on Maintenance of records Subsection 4'191P.1 Maintenance of records Item llB on Reporting obligations to the Subsection 4191P.2 Reporting obligations to the Bangko BSP Sentral Item llC on Report on Crimes/Losses Subsection 4191P.3 Repoft on Crimes/Losses Item llD on Audit Financial Statements Section 41gOP Audit Financial Statements (AFS)/Annual Report on Pawnshops (AFS)/Annual Report on Pawnshops Item lll on Minimum Internal Control Section 4171P Internal Control Svstem Standards Item lllA on Proper accounting records Subsection 417'lP.'l Proper accounting records Item lllB on Number control Subsection 4'171P.2 Number control Item lllC on Safekeeping of records and Subsection 4171P,3 Safekeeping of records and insurance insurance of premises of premises Item lllD on Bonding of accountable Subsection 4171P.4 Bonding of accountable officers/emplovees officers/emplovees Item IVA on Change of Subsection 4181P.1 Change of registered/business name reeistered/business name Item IVB on Use of registered business Subsection 4181P.2 Use of registered business name in name in signage, pawn tickets and signage, pawn tickets and other forms other forms ltems VA (Front of pawn ticket) and VB Appendix P-4 to Standard Pawn Ticket Format (Backof pawn ticket) on Standard Pawn Subsection 4323P.1 Ticket Format ltem VC (Additional stipulationsl Appendix P-4-b to Standard Additional Stipulations in information which pawnshop may Subsection 4323P.1 Pawn Tickets wish to incorporate in their pawn tickets without prior approval of the BSP) on Standard Pawn Ticket Format

Annex C Provisions from Memorandum No. MORNBFI Title/New Title M-2017-003 P-Regulations Section/Subsection/ APPendix Item Vl on Cuidelines on the Subsection 4305P.1 Right of pawner to redeem pawn Redemption of Pawns within the (3'd paragraph) within ninety (90) days from Ninety (90)-day Crace Period maturitv Annex P-l on Chart of Accounts and Appendix P-12 Chart of Accounts and Description Description of Loan Register of of Loan Register of Pawnshops Pawnshops Annex P-2 on List of Reports Required Appendix P-l3 List of Reports Required from from Pawnshoos Pawnshops Annex P-3 on Reporting Cuidelines on Appendix P-14 Reporting Cuidelines on Crimes/Losses Crimes/Losses