Regulatory Relief on Capital Relative to Valuation Losses on Peso Government Securities (GS) Measured at Fair Value Through Other Comprehensive Income (FVOCI)

9 BANGKO SENTRAL NG PIL PINAS OFFICE OFTHE GOVERNOR MEMORANDUM No. M~2026-o27 To All Banks and Quasi-Banks Subject Regulatory Relief on Capital Relative to Valuation Losses on Peso Government Securities ICS) Measured at Fair Value Through Other Comprehensive Income InfoCl} The Monetary Board (MB). in its Resolution Nos. 495 dated 04 June 2026 and 534 dated 18 June 2026, approved the regulatory relief measure on net unrealized losses on Peso CS under the FVOCl portfolio incurred after the start of the Middle East (ME ) conflict. This relief is afforded in view of the impact of the ME conflict on market yields and asset valuations. The relief measure shall be implemented as follows: I. Securities covered by the relief shall only include investments in Peso CS recorded under the F1hancia/ Assets Measured at Fall. . Value Through Other Comprehensive Income account, For purposes of computing its Capital Adequacy Ratio ICARj and Common Equity Tier ICETj I Ratio. a bank/quasi-bank (QB) shall not deduct from CEh capital the cumulative unrealized losses on its Peso CS booked under the FVOCl portfolio incurred after the start of the ME conflict. In this regard. a bank/QB that recorded net unrealized losses on its FVOCI Peso CS as of 28 February 2026 shall not include cumulative losses exceeding the said amount in computing the two capital ratios during the relief period. A bank/QB that recorded net unrealized gains on its FVOCI Peso CS portfolio as of 28 February 2026 will be allowed riot to deduct any unrealized losses on its FVOCI Peso CS portfolio from its CEn capital during the period It is understood that the banks/QBs shall continue to report actual unrealized FVOCl losses in all other financial reports leg. . Financial Reporting Package, financial statements). Realized and unrealized losses (including impairment losses) shall be reported in full. 4. The regulatory relief measure shall apply from 01 April to 31 December 2026 ("the relief period"). Retroactive application may be implemented on the April and May 2026 capital figures. 5. A bank/QB availing of this relief measure shall submit an e-mail notification to its supervising department. with its February 2026 solo CAR report attached Iincluding the control prooflist indicating net unrealized gains/losses on FVOCI Peso CS (Attachment 2)l. and copy furnish the Capital Markets and Trust Supervision Department at ' The Attachment I provides illustrative examples of the computation of a bank's CEn capital. CEn ratio. and CAR under different scenarios.

. Banks/QBs are given until30 June 2026 to notify the Bangko Sentral of theirintention to avail of this relief 6. A bank/QB availing of the subject regulatory reliefshall use the adjusted CEn capital in its quarterly CAR reports to be submitted to Bangko Sentral during the covered period. 7. Banks/QBs availing of the relief shall also submit a separate monthly CAR report with control prooflist reflecting both adjusted and uriadjusted CEn capital on a solo basis to the Bangko Sentral for the duration of the relief period. The said reports shall be submitted to the Department of Supervisory Analytics of the Bangko Sentral within ten (10) banking days from the end of reference month, For the April. May and June 2026 reports. the deadline shall be on 15 July 2026. The mode and manner of submission of the reports shall be covered by separate guidelines. 8. In view of the provision of this regulatory relief. the Bangko Sentral shall closely monitor additional investments booked under the availing banks'/QBs' F\/OCl accounts during the covered period. 9. Moreover, the Bangko Sentral may impose limitations on the participation of availing banks in select BSP liquidity facilities, 10, Banks/QBs shall revert to applying the uriadjusted CEn capital (i. e. . without the relief on unrealized mark-to-market losses on FVOCI Peso CS) in the computation of its CAR and CETl ratio beginning 01 January 2027 For guidance and implementation 21::"" ^ '^-- ELI M. REMOLONA, JR. Governor June 2026

AnACHMENT I REGULATORY RELIEF ILLUSTRATiVE EXAMPLES - BANK ABC SECTION, : BANK PROFILE & KEY ASSUMPTIONS Description Value Unit Notes Net unrealized gains orlosses on Peso CS at F\/OCl as of Feb 2026 (Scenarios A. B. C) .150 PHP Million Baseline loss position Net unrealized gains or losses on Peso CS at FVOCl as of Feb 202 (Scenarios D, E, F) 80 PHP Million Baseline gain position SECTION Z: MONTHLY NET UNREALIZED GAINS OR LOSSES ON FVOCi PESO CS Month Scenario A Scenario B Scenario C Scenario D Scenario E Scenario F I^b Loss<4pr//Loss I^b Loss>Aprr' Loss ^=b Loss-. April Gain ^b Gain<4pr// Garb I:ipb Gain>April Oarh ^b 08/17-, AprilZ. o55 Feb 2026 IBaselinej (150) nso) (150) 80 80 80 Mar 2026 080) 20 (180) 100 30 30 Apr 2026 (220) 0201 10 130 40 (20) SECTION 3: SCENARIOS Net Unrealized Gains or Losses on Peso CS at FVOC^ for Net Unrealized Gains o Losses on Peso CS at FVOCl the Computation of CET, Capital, CEh Ratio and CAR SCENARIOS Feb 2026 April2026 April2026 Actual April2026 with Relief SCENARIO A (150) (220) (220) (150) SCENARIO B 0501 (120) (120) (120) SCENARIO C (150) 10 10 10 SCENARIO D 80 130 130 130 SCENARIO E 80 40 4-0 40 SCENARIO F 80 (20) (20) o

ATrACHMENT 2 Name of Bank Code Address MONTHLY BASELlllCAPITAL ADEQUACY RATIO REPORT FOR CAPITAL RELIEF ON a!Ocl LOSSES Solo As of Reference Period CONTROL PROOFUST I. e. * HD, u, e of Item P. ,. r. hen Am""nt Am, "n. IUNAD, UsTED}11 AqunliMn, riplt. I A1 TierlC. pi, nl part ii j, ,.," ATj 0.00 o o0 A1 I Cannon Equity 710.1 Capital Part llil, .in A3j Dine, camp, .heri. I, . Inc. in. Part 11 1.1. in Alt7j Dr A1 13 Pa 11 111 emAlt, mar ",, un, *allzed galn, or In. ,., an rin. n. 1.1 A, .. it at FVOC, o co O 00 A1 13 be, o c, v, ,rim. ni s. cunti", o*h. " A1.2 Add1,10nalTie, , Capital Purl " them AGj A2 TIC, a Capl. "I Parr " much BSj A, Telalqunl:tying Cnpi, rillSum of A1 ardA21 Part ll tll. in Cj O 00 0.00 B Total PIE* eluh. .d in. e, , ., T",. ICredl, PIEk. Weight. d A, ,. t. Partllljllem Dj "a Toml Mark, . PIEk-Wclgh, co A. ..,, P"r, IV Iru. in ci BS Total Operal, ,n. I PIEk-W"I, ht, d Assets Part V 94 To1.1 nl"-W. I, h, .d A's*,, 15um, r D. I'D ". 3j O 00 C RISK. "ASF CAPITALADEQUACV PATIO C, Common Equity Tier , RE, 10 Partiji, ., n c. 11 0.00% O 00% Cll Capitol Censer un. Ian Burr. r P. '11/11em C. 1.11 0.00% O 00% <2 TierlC"PI, .Inallo IP. r. I 11, .in C2j O 003L O 00% C3 Tul. I CudL. I Ad. qu"cy rinlle P. ,. I 111, in CSj O 00% 0005: Vl"dc, ." 111, u""dj".., d fig",,, Direr cons. ,,,,"g .h" "ctu"I nut un, ""IIJ, d Ie"", an flanneln, arso!* a, FVOCl I solemnly sweat that all matters sat 10.1h in this Monthly Basel in Capital Adequacy Ratio Popor: for Capital Rnlief on FVOCI Lossns . Solo fir@ true and correct to the bust of my knowledge and beli, I ISIgnature of Duly. Authoriz@d OfficerI

Name of Bank Code Address MONTHLY BASEL1.5 CAPITALADEQUACY RATIO REPORT FOR CAPITAL RELIEF ON FVOCI LOSSES Solo As of Reference Period CONTROL PROOFLIST 11. in N. tu, e 61 item Account Ced. Ameuh, Ariaunt IUNAD, USEDjil A c. ICUl, .;an of Qu, 11Nng Capitol AT Tierl Capll. IISum. , A2. rid AJI TQC, 11, .in An 0.00 0.00 A2 Common Equity TierT Capital TQCljllem Asj Other Crimpr. henslve lnee"I. TQC, IncmAtoll Nat Unre. 1/2. d calnofjL, ,,,, 10n Fin. n c, ,IA, ,et, ., FVoci TQOliiem A, UNll o Do O 00 Peso cavernme", seeu, jut. Others As AddiL:an, ITlerl Cadlal TQCli, I'm A 61 A* Tier 2 C, PIt. I '''i 1, ,. in ri, , As fatal qu. "tying coplt, IISum CIAl rind A4j TQC, litem q ODD 0.00 ". CUIeulotlDn o1.13k. Weightsd A, ". E B, TaralC, .d:I PIEk-Weigh, ,a A, ,.*, 19,931,000@0,00000 .z Ternl Op. rational PI, k. We 19h, .a A, ,at, 1,500000000003000o BS Taral Market Risk-W. :ght, d Ag. .,. 100000000000820000 "4 Te. nlRl. k-Weighted A5, '13/5um", 0.1. , 2. rid rigj 0.00 C Mlnumum copl, "IPaql. , co RISK-BASED CAPITAL ADEQUACY RAnO CART litem GII cz Common Equl, y vie, , P. "a CAPlil. cmc. 21 0.00 0.00 CJ coplt. Icon, .runtien ,un. r CARD In. in C, I .6.00 -6.00 C* Tierl Capital Ratio CART 111. in C. *I 0.00 0.00 wind, CUI, the uriadjust. d foule= alte, tonalde, Ing tin n=Iu, I nut "n, @allz, d 1055es ,rillnan=1.1 ass, " at ,VCCI I so!Qinnly swear IkaR all matters 50t forth in this Monthly Basel 1.5 Capital Adequacy Ratio PnPort 101 Capitol Relief on FVOCI Losses . Solo aro true and correct to thn best Griny knowl. dge and belbf. Isignature of Duly-Authorized Oncerj