Regulatory Treatment of Investments of Banks in RP Global Peso Notes
MEMORANDUM NO. M-2010-028
To: ALL BANKS
Subject: Regulatory Treatment of Investments of Banks in RP Global Peso Notes
The Monetary Board, in its Resolution No. 1226 dated 2 September 2010, approved the following guidelines on the regulatory treatment of investments of banks in Global Peso Notes (GPNs) issued by the Republic of the Philippines:
(1) Banks shall record investments in GPNs in the Regular Banking Unit (RBU) books in accordance with the provisions of Philippine Accounting Standards 39 at their foreign currency amount and local currency equivalent,
(2) Banks shall report investments in GPNs in the Consolidated Report on Foreign Exchange (FX) Assets and Liabilities as part of their US dollar holdings and include said investments in the computation of their daily FX position, and
(3) Investments in GPNs shall be subject to risk weights similar to that of investments of banks in foreign currency-denominated bonds issued by the National Government for purposes of computing their risk-based capital adequacy ratio.
NESTOR A. ESPENILLA, JR. Deputy Governor
More in BSP Memoranda
- Automated Teller Machines (ATMS) for Virtual Currencies(BSP Memoranda No. M-2019-006)
- Updated Guidelines on the Submission of the Enhanced Comprehensive Credit and Equity Exposures Report (COCREE) of 2023(BSP Memoranda No. M-2024-027)
- Amendments to Incident Management under Section 1401.15 of the Manual of Regulations for Payment Systems (MORPS)(BSP Memoranda No. M-2026-011)
- MB Resolution No. 644 dated 30 April 2009 - Placement of Winbank, Inc. (A Thrift Bank) Under Receivership(BSP Memoranda No. M-2009-013)
- MB Resolution No. 706.A dated 09 May 2014 Placement of the Cavite Rural Banking Corporation (CVITE) Under Receivership(BSP Memoranda No. M-2014-022)
- Additional reportorial requirements on Unsecured Subordinated Debt (USD) in compliance with the mandatory allocation of funds for agri-agra credit required under PD No. 717(BSP Memoranda)
- Inventory of New Design Series (NDS) Banknotes(BSP Memoranda No. M-2017-022)
- MB Resolution No. 183 dated 03 February 2011 - Placement of the GMA Rural Bank of Cavite, Inc. (GMAC) under Receivership(BSP Memoranda No. M-2011-009)
Want an analysis of this document?
Ask ASG Legal AI to summarize it, compare it with other rulings, or explain how it applies to your situation — it researches from this same library.