Collection of the Annual Supervisory Fees (ASF) for the Year 2021

OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR 024 MEMORANDUM NO. M-2021-____ TO : ALL BANKS AND NON-BANKS WITH QUASI-BANKING FUNCTIONS (NBQBs) Subject : Collection of the Annual Supervisory Fees (ASF) for the Year 2021 Pursuant to Section 28 of the Republic Act (R.A.) No. 7653, “The New Central Bank Act”, as amended by R.A. No. 112111, the following guidelines shall govern the computation and collection by the Bangko Sentral Ng Pilipinas (BSP) and the payment by Banks and NBQBs of the 2021 ASF. 1. Computation of ASF for 2021 The ASF is based on the Average Assessable Assets (AAA) of the preceding year multiplied by the applicable assessment rates approved by the Monetary Board as follows: Type of Financial Institution Applicable Rate Universal/Commercial Banks 1/28 of 1% Thrift Banks 1/28 of 1% Rural/Cooperative Banks 1/40 of 1% NBQBs 1/28 of 1% The AAA of the preceding year is derived from the reports2 submitted by the Bank/NBQB to the BSP in compliance with the standards and requirements prescribed under existing regulations. In case of a merger or consolidation, the assets of the covered institutions prior to the merger or consolidation as well as the assets of the newly formed institution shall be considered in determining the AAA. In case of upgrading or downgrading, the assets from one bank category to another shall likewise be considered in determining the AAA. The collection of the 2021 ASF also takes into consideration events subsequent to the collection of the 2020 ASF that would warrant a 1 Supervised institutions shall pay to Bangko Sentral no later than May 31 of each year, an annual supervision fee as may be prescribed by the Monetary Board (MB). 2 Financial Reporting Package (FRP) for banks, Consolidated Statement of Condition (CSOC) for NBQBs, and FRP for Trust Institution (FRPTI) of banks and NBQBs with trust functions.

recomputation. In such cases, the resulting over or under-payment of the 2020 ASF shall be deducted/added to the 2021 ASF. Sample computations to illustrate potential scenarios are provided in Annex A. 2. Notification of Amount Due for 2021 and Mode of Payment The BSP Department of Supervisory Analytics (DSA) shall send a billing notice in April 2021 to the Bank/NBQB for its ASF payment indicating, among others, the computation of the ASF due, the period covered by the ASF and the specific date when the ASF will be debited from the Bank’s/NBQB’s Demand Deposit Account (DDA) with the BSP. The BSP will not accept checks as mode of ASF payment. Banks/NBQBs, upon receipt of the ASF billing notice from the BSP, should maintain adequate balance in their DDA to cover the ASF and other daily obligations and, when necessary, make corresponding deposits to fully cover said obligations. In case of deficiency, the provisions on DDA deficiency in Section 1101 and Section 1101-Q of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, as amended, shall apply. 3. Exceptions Noted on Billing Notice of 2021 ASF Upon receipt of the BSP Notice of ASF billing, a Bank/NBQB is encouraged to check the accuracy of the billing and to submit any of the noted exceptions therein not later than ten (10) working days before the specified date of collection/debit to DDA as indicated in the billing notice. The said exceptions, together with supporting documents, shall be e-mailed to [email protected] using the following prescribed subject format – ASF 2021-Noted Exceptions<space><BSFI Name> For Example, To : [email protected] Subject : ASF 2021-Noted Exceptions <BSFI Name> Any exceptions received after the cut-off date or any exceptions not duly substantiated with documents before the cut-off date will be evaluated and considered in the computation of the ASF for the immediately succeeding year.

This Memorandum shall take effect immediately. Digitally signed For strict compliance. by Chuchi G. Fonacier Date: 2021.04.12 18:50:56 +08'00' CHUCHI G. FONACIER Deputy Governor 12 April 2021 Subject : Collection of the Annual Supervisory Fees (ASF) for the Year 2021

Annex A Scenarios for computation of 2021 Annual Supervisory 1. Upgrade/Downgrade from one bank category to another Scenario A: RB A upgraded to TB A in January 2021 Scenario B: TB B downgraded to RB B in January 2021 The 2020 Average Assessable Assets (AAA) of RB A The 2020 AAA of TB B will be multiplied by the will be multiplied by the TB rate. RB rate. Jan 2020 Net Assessable Assets Jan Jan 242,849,367.14 Feb Feb 242,337,276.23 Mar 241,288,139.49 Mar 241,288,139.49 Apr Apr 240,666,674.79 May May 241,300,200.39 Jun 240,813,284.40 Jun 240,813,284.40 Jul Jul 238,639,584.15 Aug Aug 236,534,588.97 Sep 236,631,077.94 Sep 236,631,077.94 Oct Oct 232,860,322.55 Nov Nov 229,900,793.89 Dec 229,155,336.56 Dec 229,155,336.56 Sum of Net Assessable Assets 947,887,838.39 Sum of Net Assessable Assets 2,852,976,646.50 No.of reporting periods 4 No.of reporting periods 12 Average Assessable Assets 236,971,959.60 Average Assessable Assets 237,748,053.88 ASF rate for TB (1/28 of 1%) 0.000357143 ASF rate for RB (1/40 of 1%) 0.00025 ASF for 2021 for TB A 84,632.88 ASF for 2021 for RB B 59,437.01

Scenario C: RB A upgraded to TB A in November 2020 TB A will be charged the applicable rate for the equivalent number of months as RB/TB in 2020. The difference in the amount collected as 2020 ASF will be added as an adjustment to the 2021 ASF. 2020 ASF Computation of 2021 ASF (Based on 2019 Net Assessable Assets) ASF actual collection Recomputation for 2020 2020 Net Assessable As RB A As RB A As TB A Total Assets Jan Feb Jan Mar 241,288,139.49 Feb Apr Mar 232,860,323 May Apr Jun 240,813,284.40 May Jul Jun 238,639,584 Aug Jul Sep 236,631,077.94 Aug Oct Sep 242,337,276 Nov Oct Dec 229,155,336.56 Nov 254,991,835 Sum of Net Assessable Assets 947,887,838.39 947,887,838.39 947,887,838.39 Dec 267,741,427 Average Assessable Assets 236,971,959.60 236,971,959.60 236,971,959.60 No.of reporting periods 4 10 2 Sum of Net Assessable Assets 1,236,570,445.70 Prorated No. of months as RB/TB 10/12 2/12 No. of reporting periods 5 Prorated Average Assessable Assets 197,476,633.00 39,495,326.60 Average Assessable Assets 247,314,089.14 Applicable ASF Rates 0.00025 0.00025 0.000357143 ASF rate for TB (1/28 of 1%) 0.000357143 ASF actual collection for 2020 59,242.99 ASF for 2021 88,326.50 2020 ASF Recomputation (RB A + TB A) 49,369.16 14,105.48 63,474.64 Under/(Over) Collection of 2020 ASF* 4,231.65 Less: ASF actual collection for 2020 59,242.99 Total ASF for 2021 for TB A 92,558.14 Under/(Over) Collection of 2020 ASF* 4,231.65

Scenario D: TB A downgraded to RB A in November 2020 RB A will be charged the applicable rate for the equivalent number of months as TB/RB in 2020. The difference for the amount collected as 2020 ASF will be added as an adjustment to the 2021 ASF. 2020 ASF Computation of 2021 ASF (Based on 2019 Net Assessable Assets) ASF actual collection for Recomputation 2020 2020 Net Assessable As TB A As TB A As RB A Total Assets Jan 242,849,367.14 Jan 233,738,443 Feb 242,337,276.23 Feb 238,413,212 Mar 241,288,139.49 Mar 243,181,476 Apr 240,666,674.79 Apr 248,045,106 May 241,300,200.39 May 253,006,008 Jun 240,813,284.40 Jun 258,066,128 Jul 238,639,584.15 Jul 263,227,451 Aug 236,534,588.97 Aug 268,492,000 Sep 236,631,077.94 Sep 273,861,840 Oct 232,860,322.55 Oct 279,339,077 Nov 229,900,793.89 Nov Dec 229,155,336.56 Dec 206,910,715 Sum of Net Assessable Assets 2,852,976,646.50 2,852,976,646.50 2,852,976,646.50 Average Assessable Assets 237,748,053.88 237,748,053.88 237,748,053.88 Sum of Net Assessable Assets 2,766,281,455.45 No.of reporting periods 12 10 2 No. of reporting periods 11 Prorated No. of months as TB/RB 10/12 2/12 Average Assessable Assets 251,480,132.31 Prorated Average Assessable Assets 198,123,378.23 39,624,675.65 ASF rate for RB (1/40 of 1%) 0.00025 Applicable ASF Rates 0.000357143 0.000357143 0.00025 ASF for 2021 62,870.03 2020 ASF Recomputation (TB A + RB A) 70,758.38 9,906.17 80,664.55 Under/(Over) Collection of 2020 ASF* -4,245.51 Less: ASF actual collection for 2020 84,910.05 84,910.05 Total ASF for 2021 for RB A 58,624.53 Under/(Over) Collection of 2020 ASF* (4,245.51)

2. Consolidation: Two or more entities combine to form a new single entity. The original entities cease operations after the new entity started its operations. Scenario E: RB C and TB C consolidated in January 2021 to form a new TB D. Since the consolidation was effected prior to the assessment for 2021 ASF, the 2020 Net Assessable Assets of the two banks will be combined and the TB rate will be applied. 2020 Net Assessable Assets RB C TB C TB D Jan 164,658,792.00 164,658,792.00 Feb 163,861,844.80 163,861,844.80 Mar 21,928,504.00 165,311,225.60 187,239,729.60 Apr 153,357,155.20 153,357,155.20 May 154,301,374.40 154,301,374.40 Jun 22,295,142.15 168,488,963.20 190,784,105.35 Jul 170,373,352.00 170,373,352.00 Aug 170,278,228.80 170,278,228.80 Sep 22,320,467.05 168,700,764.00 191,021,231.05 Oct 168,186,770.40 168,186,770.40 Nov 177,710,888.80 177,710,888.80 Dec 22,383,648.40 192,866,280.80 215,249,929.20 2,107,023,401.60 No. of reporting periods 12 Average Assessable Assets 175,585,283.47 ASF rate for TB (1/28 of 1%) 0.000357143 ASF for 2021 for TB D 62,709.05

Scenario F: RB X and TB Y consolidated in November 2020 to form a new TB Z. TB Z will be charged the applicable rate as TB in 2020. The difference in the amount collected as 2020 ASF will be added as an adjustment to the 2021 ASF. 2020 ASF Computation of 2021 ASF 2020 Net Assessable Assets (Based on 2019 Net Assessable Assets) RB X TB Y TB Z ASF actual collection for 2020 RB X TB Y Total Jan 174,949,966.50 174,949,966.50 Jan 137,286,164.53 137,286,164.53 Feb 175,643,177.20 175,643,177.20 Feb 140,087,922.99 140,087,922.99 Mar 20,638,592.00 175,643,177.20 196,281,769.20 Mar 19,036,380.13 142,946,860.19 161,983,240.32 Apr 162,941,977.40 162,941,977.40 Apr 145,864,143.05 145,864,143.05 May 163,945,210.30 163,945,210.30 May 148,840,962.30 148,840,962.30 Jun 20,983,663.20 179,019,523.40 200,003,186.60 Jun 19,424,877.68 151,878,532.96 171,303,410.64 Jul 181,021,686.50 181,021,686.50 Jul 154,978,094.86 154,978,094.86 Aug 180,920,618.10 180,920,618.10 Aug 158,140,913.12 158,140,913.12 Sep 21,007,498.40 179,244,561.75 200,252,060.15 Sep 19,821,303.76 161,368,278.69 181,189,582.45 Oct 178,698,443.55 178,698,443.55 Oct 164,661,508.87 164,661,508.87 Nov 199,705,941.95 Nov 168,021,947.83 168,021,947.83 Dec 219,676,536.15 Dec 20,225,820.16 171,450,967.17 191,676,787.33 Sum of Net Assessable Assets 2,234,040,573.60 Sum of Net Assessable Assets 78,508,381.73 1,845,526,296.56 1,924,034,678.29 No. of reporting periods 12 Average Assessable Assets 19,627,095.43 153,793,858.05 160,336,223.19 Average Assessable Assets 186,170,047.80 No.of reporting periods 4 12 12 ASF rate for TB (1/28 of 1%) 0.000357143 Applicable ASF Rates 0.00025 0.000357143 0.000357143 ASF for 2021 for TB Z 66,489.33 ASF actual collection for 2020 57,262.96 Under/(Over) Collection of 2020 ASF* (2,570.21) 2020 ASF Recomputation (RB A + TB A) 4,906.77 54,926.40 59,833.17 Total ASF for 2021 for TB Z 63,919.12 Under/(Over) Collection of 2020 ASF* (2,570.21)

3. Merger: One entity absorbs another entity and continue to operate as the surviving entity while the absorbed entity ceases to operate Scenario G: RB D and TB E merged in January 2021 with TB E as the surviving entity The quarterly 2020 Net Assessable Assets of RB D will be combined with the monthly 2020 Net Assesable Assets of TB E and the TB rate will be applied. 2020 Net Assessable Assets RB D TB E Total Jan 154,367,617.50 154,367,617.50 Feb 153,620,479.50 153,620,479.50 Mar 23,218,416.00 154,979,274.00 178,197,690.00 Apr 143,772,333.00 143,772,333.00 May 144,657,538.50 144,657,538.50 Jun 23,606,621.10 157,958,403.00 181,565,024.10 Jul 159,725,017.50 159,725,017.50 Aug 159,635,839.50 159,635,839.50 Sep 23,633,435.70 158,156,966.25 181,790,401.95 Oct 157,675,097.25 157,675,097.25 Nov 173,442,606.98 173,442,606.98 Dec 23,700,333.60 187,318,015.53 211,018,349.13 Sum of Net Assessable Assets 1,999,467,994.91 No. of reporting periods 12 Average Assessable Assets 166,622,332.91 ASF rate for TB (1/28 of 1%) 0.000357143 ASF for 2021 for TB E 59,508.00

Scenario H: RB A and TB A merged in December 2020 with TB A as the surviving entity TB A will be charged the applicable rate as TB in 2020. The difference for the amount collected as 2020 ASF will be added as an adjustment to the 2021 ASF. 2020 ASF Computation of 2021 ASF 2020 Net Assessable Assets (Based on 2019 Net Assessable Assets) RB A TB A Total ASF Collected for 2020 Recomputation RB A TB A TB A Jan 549,972,808 549,972,808 Jan 242,849,367.14 242,849,367.14 Feb 577,471,448 577,471,448 Feb 242,337,276.23 242,337,276.23 Mar 252,070,870.22 606,345,021 858,415,891 Mar 241,288,139.49 241,288,139.49 482,576,278.98 Apr 636,662,272 636,662,272 Apr 240,666,674.79 240,666,674.79 May 668,495,385 668,495,385 May 241,300,200.39 241,300,200.39 Jun 277,277,957.24 701,920,154 979,198,112 Jun 240,813,284.40 240,813,284.40 481,626,568.80 Jul 737,016,162 737,016,162 Jul 238,639,584.15 238,639,584.15 Aug 773,866,970 773,866,970 Aug 236,534,588.97 236,534,588.97 Sep 305,005,752.96 812,560,319 1,117,566,072 Sep 236,631,077.94 236,631,077.94 473,262,155.88 Oct 853,188,335 853,188,335 Oct 232,860,322.55 232,860,322.55 Nov 895,847,751 895,847,751 Nov 229,900,793.89 229,900,793.89 Dec 940,640,139 940,640,139 Dec 229,155,336.56 229,155,336.56 458,310,673.12 Sum of Net Assessable Assets 834,354,580.41 8,753,986,763.66 9,588,341,344.08 Sum of Net Assessable Assets 947,887,838.39 2,852,976,646.50 3,800,864,484.89 No. of reporting periods 12 Average Assessable Assets 236,971,959.60 237,748,053.88 316,738,707.07 Average Assessable Assets 799,028,445.34 No.of reporting periods 4 12 12 ASF rate for TB (1/28 of 1%) 0.000357143 Applicable ASF Rates 0.00025 0.000357143 0.000357143 ASF for 2021 285,367.42 2020 ASF 59,242.99 84,910.05 Under/(Over) Collection of 2020 ASF* -31,032.08 Recomputed 2020 ASF (TB A) 113,120.97 Total ASF for 2021 for TB A 254,335.34 Less: ASF collected for 2020 (RB A + TB A) 144,153.04 Under/(Over) Collection of 2020 ASF* (31,032.08)

4. Amendment of reports used in the computation of ASF Scenario I: RB E amended its Dec 2019 FRP in January 2021 The 2020 ASF will be recomputed and the resulting under/(over) collection will be added to/deducted from the 2021 ASF. Computation of 2021 ASF Recomputation of 2020 ASF 2020 Net Assessable 2019 Net Assessable Asssets Assets RB E RB E Original Amended Jan Jan Feb Feb Mar 19,864,644.80 Mar 18,522,548.05 18,522,548.05 Apr Apr May May Jun 20,196,775.83 Jun 19,605,793.15 19,605,793.15 Jul Jul Aug Aug Sep 20,219,717.21 Sep 20,644,771.95 20,644,771.95 Oct Oct Nov Nov Dec 20,276,952.08 Dec 21,484,407.05 21,883,458.27 Sum of Net Assessable Assets 80,257,520.20 80,656,571.42 Sum of Net Assessable Assets 80,558,089.92 No. of reporting periods 4 4 No. of reporting periods 4 Average Assessable Assets 20,064,380.05 20,164,142.85 Average Assessable Assets 20,139,522.48 ASF rate for RB (1/40 of 1%) 0.00025 ASF rate for RB (1/40 of 1%) 0.00025 Recomputed ASF for 2020 5,041.04 ASF for 2021 5,034.88 Less: ASF collected for 2020 5,016.10 Under/(Over) Collection of 2020 ASF* 24.94 Under/(Over) Collection of 2020 ASF* 24.94 Total ASF for 2021 for RB E 5,059.82