Exclusion of Loans and Other Credit Accommodations Covered by Guarantees of International/Regional Institutions/Multilateral Financial Institutions from Ceilings to Subsidiaries and Affiliates of Banks

BANG]<O SENTRAL NG PIuIPtNAS OFFICE OF THE GOVERNOR CIRCULAR NO. 978 Series of 2OL7 Subject: Exclusion of Loans and Other Credit Accommodations Covered by Guarantees of International/Regional Institutions/Multilateral Financial lnstitutions from Ceilings to Subsidiaries and Affiliates of Banks The Monetary Board, in its Resolution No. 1753 dated 12 October 2OL7, approved the exclusion of the portion of loans and other credit accommodations covered by guarantees of international/regional institutions/multilateral financial institutions where the Philippine Government is a member/shareholder, from the ceilings on total outstanding loans, other credit accommodations and guarantees granted to banks' subsidiaries and affiliates. Section 1. Subsection X328.5 of the MORB on loans, other credit accommodations and guarantees granted to subsidiaries and/or affiliates shall be amended to read as follows: "Subsection X328.5 Loons, other credit occommodations and guorantees gronted to subsidiories ond/or ofliliates. a. Ceilings. The total outstanding loans, other credit accommodations and guarantees to each of the bank's subsidiaries and affiliates ... xxx. b. Exclusions from the ceilings. The following loans, other credit accommodations and guarantees shall be excluded in determining compliance with the ceilings prescribed in ltem "o" above; (1) Loans, other credit accommodations and guarantees secured by assets considered as non-risk under existing Bangko Sentral regulations; (2) Interbank call loans; and (3) The portion of loans and other credit accommodations covered by guarantees of international/regional institutions/multilateral financial institutions where the Philippine Government is a member/shareholder, such as the International Finance Corporation and the Asian Development Bank. c. Procedurol requirements. xxx xxx

Section 2. Thls Circular shall take effect fifteen (15) calendar days following publication either in the Official Gazette or in a newspaper of general circulation. r FOR THE MONETARY BOARD: l[october 2oll Page 2 ot 2