Exclusion of Debt Securities Held by Market Makers from the Single Borrowers Limit (SBL)

BaNoxo SeNrnaL ne PlurptNAs OFFICE OF THE GOVERNOR crRcuLAR NO.L091 Series of 2020 Subject: Exclusion of Debt Securities Held by Market Makers from the Single Borrowers timit (SBL) The Monetary Board, in its Resolution No. 899 dated 15 July 2O7O, approved the amendments to relevant provisions of the Manual of Regulations for Banks (ltnORB) and Manual of Regulations for Non-Bank Financial lnstitutions (MORNBFI) to exclude the debt securities held by market makers from the credit exposure limit to a single borrower. Section 1. Section 362/342-Q of the MORB/MORNBFI is hereby amended to read as follows; 362I342.QCREDIT EXPOSURE LIMITS TO A SINGTE BORROWER xxx Exclusions from loon limit. xxx A. XXX xxx k. /f. Debt securities acquired as a result of market making activities pursuant to the rules and guidelines of the Securities and Exchange Commission (SEC) and the market or exchangel where such securities are traded and/or enrolled, Provided, That: (1) The market-making positions shall be taken up in the trading book in accordance with Sec. 6L4/6L4-Q on investment activities of Bangko Sentral Supervised Financial Institution (BSFlh (2) The market-making positions shall be properly identified and segregated from the BSFI's proprietary positions; and (3) The BSFI shall periodically monitor the market value of the subject debt securities and the number of days the securities have been outstanding from date of acquisition. Provided, further, That the subject debt securities shall be excluded from the SBL for a period not exceeding the number of calendar days, as indicated below, from date of acquisition: A. Mabrnr St,, Malate 1OO4 Manrla, Philippines . (632) 708-7701 | www.bsp.gov.ph . bspmail@bsp Bov.ph

Calendar Days Date of Acouisition 90 davs l August 2020 - 31Julv 2021 60 days l August 202L onwards V lt should be organized in accordance with the SEC rules and regulation Section 2. Effectivity. This Circular shall take effect fifteen (15) calendar days after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: ( c (. BENJAMIN E. DIOKNO Governor '|fo ntvzozo PaEe 2 of 2