Extension of the Basel III Leverage Ratio Monitoring Period

BANGKO SergrnaL NG PILIPINAS OFFICE OF THE GOVERNOR ctRcutAR No.943 Series of 20L7 Subject: Extension of the Basel lll Leverage Ratio Monitoring Period The Monetary Board, in its Resolution No. 2307 dated 23 December 2016, approved the one-year extension of the Basel lll Leverage Ratio monitoring period from 3L December 2016 to 31. December 20L7. Section 1. Subsection X115.6 Basel lll Leverage Ratio Framework of the Manual of Regulations for Banks (MORB) is hereby amended as follows: "a. The Basel lll Leverage Ratio xxx xxx Starting 31 December 201,4 and every quarter thereafter until 31 December 201-7, concerned banks shall submit the Basel lll Leverage Ratio reporting template, including required disclosure templates, on both solo and consolidated bases for monitoring purposes. For the periods ended 31 December 2OL4,31. March 2015 and 30 June 2OL5, the reports shall be submitted within 30 banking days from 30 June 2015 on both solo and consolidated bases. For the succeeding quarters, the report shall be submitted semi-annually, each submission covering two quarters on both solo and consolidated bases. Report submission shall be L5 banking days and 30 banking days on solo and consolidated bases, respectively, from the end of the most recent reference quarter. The report submission is summarized below: Report Date Reference Date Deadline of Submission 31 December 2O14 30 banking days on.[oth solo and 3L March 201.5 30 June 20L5 consolidated bases from end of 30 June 2015 reference date 30 September 2015 31 December 2015 31 December 2015 31 March 2016 30 June 20L6 30 June 2016 15 banking days on solo basis from 30 September 2015 end of reference date and 31 December 2016 31. December 201.6 30 banking days on consolidated 31 March 2017 basis from end of reference date 30 June 2017 30 June 2017 30 September 2OL7 31. December 20t7 31 Decemb er 2OI7 During the monitoring period, the Bangko Sentral shall continue to assess the calibration as well as the treatment of the components of the leverage ratio. Final guidelines shall be issued in view of the changes to the framework as well as migration from monitoring of the leverage ratio to a Pillar 1 requirement starting 01 January 2018. Public disclosure of information relative to leverage ratio shall not be required during the monitoring

period, i.e. 31 December 2014 to 31 December 2OI7. b. Sanctions. Banks shall not be penalized on any breach on the 5.0 percent minimum leverage ratio during the monitoring period, i.e.,31 December 2014 to 31 December 20t7. However, late and/or erroneous reports shall be subject to penalties provided under Subsection X192.2 of the MORB. Banks failing to submit the required reports within the prescribed deadlines shall be subject to monetary penalties applicable for delayed reporting under existing regulations. For purposes of imposing monetary penalties, the reports shall be classified as a Category A-1 report." Section 2. Section B of Appendix 111 of the MORB is hereby amended as follows: "B. Reporting and Disclosure Requirements Starting 31 December 20!4 and every quarter thereafter until 31 December 2Ol.7, banks/QBs concerned shall submit the Basel lll Leverage Ratio reporting template on both solo and consolidated bases for monitoring purposes. The report shall use the prescribed forms and shall be submitted to the appropriate department of the SES. For the periods ended 31 December 2OL4,31. March 2015 and 30June 20L5, the reports shall be submitted within 30 banking days from 30 June 2015 on both solo and consolidated bases. For the succeeding quarters, the report shall be submitted semi- annually, each submission covering two quarters on both solo and consolidated bases. Report submission shall be 1.5 banking days and 30 banking days on solo and consolidated bases, respectively, from the end of the most recent reference quarter. The report submission is summarized below: Report Date Reference Date Deadline of Submission 31 December 2Ot4 30 banking days on both solo and 31 March 2015 30 June 2015 consolidated bases from end of 30 June 20L5 reference date 30 September 2015 31 December 2015 31 December 2015 31 March 2016 30 June 2015 30 June 2016 15 banking days on solo basis from 30 September 20L6 end of reference date and 31. December 2015 31 December 2016 30 banking days on consolidated 31 March 2017 basis from end of reference date 30 June 2017 30 June 2017 30 September 2077 31 December 2Ot7 31 December 2OL7 XXX,, Section 3. Subsection 4115Q.6 Basel lll Leverage Ratio Framework of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) is hereby amended as follows: "a. The Basel lll Leverage Ratio xxx XXX

Starting 31 December 2014 and every quarter thereafter until 31 December 2O!7, concerned QBs shall submit the Basel lll Leverage Ratio reporting template, including required disclosure templates, on both solo and consolidated bases for monitoring purposes. For the periods ended 31 December 20L4, 31 March 201-5 and 30 June 2OL5, the reports shall be submitted within 30 banking days from 30 June 2015 on both solo and consolidated bases. For the succeeding quarters, the report shall be submitted semi-annually, each submission covering two quarters on both solo and consolidated bases. Report submission shall be 15 banking days and 30 banking days on solo and consolidated bases, respectively, from the end of the most recent reference quarter. The report submission is summarized below: Report Date Reference Date Deadline of Submission 3L December 2OL4 30 banking days on both solo and 31 March 201.5 30 June 201.5 consolidated bases from end of 30 June 2015 reference date 30 September 2015 31 December 2015 31 December 2015 31 March 2016 30 June 2016 30 June 201,6 15 banking days on solo basis from 30 September 2015 end of reference date and 3L December 2016 31 December ZOLG 30 banking days on consolidated 3l March 2017 basis from end of reference date 30 June 2017 30 June 2017 30 September 2Ot7 31 December 2OI7 31 December 2OL7 During the monitoring period, the Bangko Sentral shall continue to assess the calibration as well as the treatment of the components of the leverage ratio. Final guidelines shall be issued in view of the changes to the framework as well as migration from monitoring of the leverage ratio to a Pillar 1 requirement starting 0L January 2018. Public disclosure of information relative to leverage ratio shall not be required during the monitoring period, i.e. 31 December 2014 to 31 December 2017. b. Sanctions. QBs shall not be penalized on any breach on the 5.0 percent minimum leverage ratio during the monitoring period, i.e., 31 December 20L4 to 31 December 2017. However, late and/or erroneous reports shall be subject to penalties provided under Subsection 4L92Q.2 of the MORNBFI. QBs failing to submit the required reports within the prescribed deadlines shall be subject to monetary penalties applicable for delayed reporting under existing regulations. For purposes of imposing monetary penalties, the reports shall be classified as a Category A-1 report." Section 4. Section B of Appendix Q-65 of the MORNBFT is hereby amended as follows: "B. Reporting and Disclosure Requirements Starting 3L December 2O14 and every quarter thereafter until 31 December 2017, banks/eBs concerned shall submit the Basel lll Leverage Ratio reporting template on both solo and consolidated bases for monitoring purposes. The report shall use the prescribed forms and shall be submitted to the appropriate department of the SES. For the periods ended 3l- December

2OL4,31 March 2015 and 30 June 20L5, the reports shall be submitted within 30 banking days from 30 June 20L5 on both solo and consolidated bases. For the succeeding quarters, the report shall be submitted semi-annually, each submission covering two quarters on both solo and consolidated bases. Report submission shall be 15 banking days and 30 banking days on solo and consolidated bases, respectively, from the end of the most recent reference quarter. The report submission is summarized below: Report Date Reference Date Deadline of Submission 31 December 2OL4 30 banking days on both solo and 3l March 2015 30 June 201.5 consolidated bases from end of 30 June 2015 reference date 30 September 2015 31 December 2015 31 December 2015 31 March 2016 30 June 2016 30 June 2016 15 banking days on solo basis from 30 September 2016 end of reference date and 31 December 2016 31 December 2OL6 30 banking days on consolidated 31 March 2017 basis from end of reference date 30 June 2017 30 June 2017 30 September 2OL7 31 December 2OI7 31 December 2OL7 xxx" This Circular shall take effect immediately after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: ,4; DIWAC. GUINIGUNDO Officer-ln-Charge V,n*1. 2b lanuary 2017 Page 4 ot 4