Amendments to the Liquidty Coverage Ratio Framework and Minimum Prudential Liquidity Requirements for Stand-Alone Thrift Banks, Rural Banks, Cooperative Banks and Quasi-Banks

BANGKo SeNTRaL NG PILIPINAS OFFICE OF THE GOVERNOR ctRcutAR No. 995 Series of 2018 Subject: Amendments to the Liquidity Coverage Ratio Framework and Minimum Prudential Liquidity Requirements for Stand-alone Thrift Banks, Rural Banks, Cooperative Banks and Quasi-Banks The Monetary Board, in its Resolution No. 142 dated 25 January 20L8, approved the: (1) amendments to the Basel lll framework on Liquidity Standards - Liquidity Coverage Ratio (LCR) and Disclosure Standards; (21 introduction of a prudential minimum liquidity ratio for stand-alone thrift banks, rural and cooperative banks and quasi-banks (QBs); and (3) relaxation of certain liquidity requirements, together with the related amendments to the Manual of Regulations for Banks (MORB), the Manual of Regulations for Non-bank Financial Institutions (MORNBFI), and ,the Manual of Regulations on Foreign Exchange Transactions (FX Manual). i Part l. Amendments to the Basel lll Framework on Liquidity Standards - Liquidity Coverage Ratio and Disclosure Standards Section 1. Subsections 1175.1 to LL76.2 of the MORB covering the guidelines on LCR and disclosure standards are hereby replaced by Subsections X176.t/4L76Q.1 to XI76.2/4I76Q.2 of the MORB/MORNBFI to reflect the amended guidelines on the LCR, which shall be applicable to all universal and commercial banks (UBs/KBs) and their subsidiary banks and quasi-banks (QBs). "Subsection X176.114176Q.1 Liquidity Coverage Rotio (LCR). To promote the short-term resilience of the liquidity risk profile of a bank/eB, it shall maintain an adequate stock of unencumbered high-quality liquid assets (HQLAs) that consists of cash or assets that can be converted into cash at little or no loss of value in private markets, to meet its liquidity needs under stressed conditions. The stock of liquid assets should enable the bank/QB to withstand significant liquidity shocks for at least thirty (30) calendar days, which would give time for corrective actions to be taken by the bank/QB management and/or the Bangko Sentral. The LCR framework shall apply to all UBs/KBs1 and their subsidiary banks and QBs on both solo (head office plus branches/other offices) and consolidated (parent bank plus subsidiary financial allied undertakings, but excluding insurance companies) bases. ' Including branches of foreign banks

a. Minimum requirement - The LCR is the ratio of HeLAs to total net cash outflows. Under a normal situation, the value of the ratio shall be not lower than Loo% on an ongoing basis. while the LCR is expected to be met in a single currency (i.e., in peso equivalent terms of all currencies), banks/eBs are expected to be able to meet their liquidity needs in each currency and maintain HQLA consistent with the distribution of their liquidity needs by currency. The detailed LCR framework is provided in Partt of Appendix 7ao/e-a$b. b. Reporting and monitoring requirements - Covered banks/eBs shall comply with the minimum LCR requirement on a daily basis, and shall have appropriate systems in place to ensure the same. For reporting purposes, covered banks/eBs shall submit a report on their LCR to the Bangko Sentral, through the Supervisory Data Center (SDC), on both solo and consolidated bases, in accordance with the following timelines: Reporting Details Solo Basis Consolidated Basis Frequency Monthly Quarterlv Measurement Date End-of-month End-of-quarter LCR Calculation Period 30 calendar days from measurement date 15 banking/business days from 30 banking/business days from Submission Deadlines measurement date measurement date The LCR Reports shall be accompanied by a certification under oath to the effect that the bank/QB has fully complied with the LCR requirement on all calendar days of the reference period in the form provided under Appendix 74b/e-aac (Attochment 1).The solo and consolidated LCR Reports, together with the Sworn Certification shall be classified as Category A-7 reports. While there is no minimum threshold for LCRs in each significant currency, covered banks/QBs shall report the significant currency LCR to the Bangko Sentral for monitoring purposes using the same LCR Report template as of the LCR measurement date. The significant currency LCR shall be reported in the original currency. A currency is considered "significan(' if the aggregate liabif ities denominated in that currency amount to five percent (S%l or more of the banks' total liabilities as of the measurement date. The submission of the LCR report shall be subject to the governance process on the quality of bank reporting under sec. X184 of the MORB. Any non-compliance with the reporting standards, or non-submission or delayed submission of the LCR report and the report on significant currency LCRs shall be subject to the monetary and non-monetary sanctions provided under Subsec. X184.3 of the MoRB/fines for delayed reports under subsec. 4Lg2e.2 of the MORNBFt. c. lmplementotion - The implementation of the minimum LCR shall be phased in to help ensure that the banks/eBs concerned can meet the standard through reasonable measures without disrupting credit extension and financial market activities. In order to facilitate compliance, banks/eBs shall undergo an Page2 of t4

observation period before the LCR becomes a minimum requirement. The timelines are set out in the table below: Observatlon Perlod Minimum tCR 01 January 2018 UBs/KBs 01 July 20L6 - and thereafter- 0L January 2019 31 December 2017 90o/o & thereafter - Subsidiary Banks and QBs LOO% Until 31 December 201.8 of UBs/KBs Requirements during the observation period. For monitoring purposes, banks/QBs concerned shall submit the LCR Reports quarterly in single currency and per significant currency, on both solo and consolidated bases following the submission deadlines for consolidated reports set out in ltem "b". Any non- submission or delayed submission of the LCR Report during the observation period shall be subject to the monetary and non-monetary sanctions provided under Subsec. X184.3 of the MORB/fines for delayed reports under Subsec. 4L92Q.2 of the MORNBFt. During the observation period, the Bangko sentral is not precluded from assessing the covered bank's/QB's compliance with the LCR requirement. Banks/QBs with LCRs that are already at or near the prescribed minimum should not view the transition period as an opportunity to reduce their liquidity coverage. Where a subsidiary bank/eB of a UB/KB is unable to meet the minimum LCR for two consecutive weeks during the observation period, the bank/QB shall immediately adopt a board-approved liquidity build-up plan. The plan should clearly articulate the bank's/eB's defined strategies and timelines for meeting the required LCR by 01 January 2O!9, and should include estimates of the liquidity ratio at every quarter prior to the effectivity date. The build-up plan shall be submitted to the Bangko Sentral, through the appropriate Central point of Contact Department (CPCD), within ten (10) banking/business days after it is approved by the board. The CPCD concerned will evaluate the continuing compliance of the bank/QB with the said plan. In case of non-compliance, the Bangko Sentral may require the covered bank/eB to undertake a set of actions. The Bangko Sentral may likewise impose enforcement actions as provided under Sect o n Xt7 6.2O / 4L7 6Q.20 of t h e M O R B/M O R N B F t. i subsection KL76.214L76Q.2 LCR disctosure requirements. To improve the transparency of the regulatory liquidity requirement, enhance market discipline, and reduce uncertainty in the market, covered banks/QBs shall publicly disclose information related to the LCR on solo and consolidated bases as prescribed under Part ll of Appendix 7$o/Appendix e-44b starting year 2019. The mandatory disclosure requirements in single currency should be published in the quarterly published balance sheet, as well as in the annual reports or published financial reports (e.g., the audited financial statements)."

Section 2. Footnote 3 of Appendix 74a of the MORB is hereby amended as follows: "The LOOYo threshold is the minimum requirement absent a period of financial stress, and after the phase-in arrangements are complete." Section 3. Part I of AppendixT4a of the MORB is hereby amended to incorporate the liquidity metrics for Level 2 assets, as follows: "Part l. Liquidity Coverage Ratio (LCR) Framework L xxx xxx lll. LCR Calculation A. xxx 1. xxx XXX B. Stock of HQLA (1) HQLA eligibility criteria 5. Asset and morket liquidity chorocterisfics. To qualify as HQLA, assets should have a high potential to generate funds easily and immediately through outright sale or secured borrowing, during a stress scenario without incurring large discounts due to fire-sales. These assets must be liquid and readily-marketable. 6. The liquidity and ready-marketability of an asset is influenced both by its own specific features and by the characteristics of the broader market structure within which it is traded. 7. To assess the relative liquidity and ready-marketability of assets, particularly those that are classified as Level 2 under this Framework, liquidity metrics such as those set out in Annex A may be used. The metrics, including the analytical tools, guidelines and methodologies, data used, and threshold levels shall be developed in coordination with the banking industry. These shall be subject to review and updating at least annually to reflect prevailing market liquidity conditions." xxx Page 4 of !4

17. Specific haircuts shall be applied to each Level 2 asset held in the stock. Level 2 assets are limited to the following asset classes: XXX Further, the Level 2 assets shall meet the metrics set out in Annex A-L (Attachment 2), except for securities representing claims on or guaranteed by sovereigns, central banks and MDBs. xxx" Section 4. The contents of Appendix 74a are either deleted or renumbered as follows: Contents From To Scope of Application Part l.ll Deleted LCR Calculation Part l.lll Part l.ll Supervisory Framework For Minimum Liquidity Part l.lV Deleted Requirement LCR Disclosure Requirement Part ll Deleted (paragraph 1) Transitional Arrangements Part lll Deleted section 5. All references to "banks" in Appendix r4a of the MoRB shall be replaced with "covered banks." The revised regulations under Appendix 74a of the MORB shall be adopted as Appendix Q-44b of the MORNBF| and shall apply to eBs concerned. Section 6. The reports mentioned in ltem b. of Subsection Xl76.L of the MoRB/subsection 4L76Q.L of the MORNBFt shall be listed in Appendix 6/A-e to account for the reportorial requirements relative to the LCR requirement for subsidiary banks and QBs of UB/KBs. For the reporting template, banks and eBs concerned shall refer to the report form in Attachment 3. The guidelines governing the mode and manner of submission of the electronic reportorial templates shall be covered by a separate issuance.

Part ll. Introduction of the Minimum tiquidity Ratio (MLR| for Stand-Alone Thrift Banks, Rural Banks, Cooperative Banks, and Quasi-Banks Section 7. The following subsections are hereby added to the MORB and MORNBFI: "Subsection X776.314175q.3 Minimum Liquidity Ratio (MLR) for Stond-Alone Thrift Bonks, Rurol Bonks, Cooperotive Banks ond Quosi-Bonks. To promote short-term resilience to liquidity shocks, banks/QBs shall maintain a stock of liquid assets proportionate to their on- and off-balance sheet liabilities. The prudential MLR requirement applies to all thrift banks (TBs), rural/cooperative banks (RBs and Coop Banks), and QBs that are not subsidiaries of universal or commercial banks (UBs/KBs), o. Minimum requirement - A prudential MLR of twenty percent (20o/ol shall apply to banks/QBs on an ongoing basis absent a period of financial stress. The liquidity ratio is expressed as a percentage of a bank's/QB's eligible stock of liquid assets to its total qualifying liabilities. (1) The stock of liquid assets shall consist of: (a) Cash on hand; (b) Reserves in the Bangko Sentral; (c) Overnight and term deposits2 with the Bangko Sentral, including reverse repos where the Bangko Sentral is the counterparty; (d) Eligible debt securities representing claims on or guaranteed by - (i) The Philippine national government (NG) and the Bangko Sentral; or (ii) Sovereigns, central banks of foreign countries, or by multilateral organizations that are assigned a zero percent risk weight under Part lll of Appendix 63c of the MORB/Subsec.4116Q.3 of the MORNBFI; and (e) Deposits in other banks. Provided, That the amounts to be included in the stock of liquid assets are immediately liquefiable and free from encumbrances. (21 The qualifying liabilities shall consist of the following: (a) Total liabilities; and (b) lrrevocable obligations under off-balance sheet items, such as: (i) Guarantees issued; (ii) Trade related guarantees; (iii) Letters of credit; and (iv) Other committed credit lines. 'To the extent allowed to be drawn down in times of stress.

b. Reporting ond monitoring requiremenfs. Covered banks/QBs shall comply with the MLR on a daily basis, and shall have the appropriate systems in place to ensure the same. For reporting purposes, covered banks/QBs shall submit a monthly report on their compliance with the MLR to the Bangko Sentral, through the SDC. The report shall be submitted on solo basis in peso-equivalent terms using the prescribed form within fifteen (15) business days after the end of the reference period, effective 0l January 2OL9. The reports shall be accompanied by a certification under oath to the effect that the bank/QB has fully complied with the MLR requirement on all calendar days of the reference period (Attachment 4). In cases when the MLR is not met but the same do not warrant the submission of a notification to the Bangko Sentral under ltem "b" of Subsec. X176.7/4L76Q.7 of the MORB/MORNBFI, the specific date of the occurrence of the shortfall/s shall likewise be indicated in the certification. These reports shall be considered as Cotegory A-7 reports. In addition, banks/QBs shall use the MLR template to internally measure and monitor their compliance with the prudential requirement for each currency in which they have significant activities. For this purpose, a currency is considered significant if the aggregate liabilities denominated in that currency amount to five percent(5%l or more of the total liabilities as of the MLR measurement date. Banks/QBs are expected to be able to meet their liquidity needs in each currency and maintain a stock of eligible liquid assets consistent with the distribution of their liquidity needs by currency to ensure that risks arising from currency mismatch are properly mitigated. The submission of the MLR report shall be subject to the governance process on the quality of bank reporting under Sec. X184 of the MORB. Any non-compliance with the reporting standards, or non-submission or delayed submission of the MLR report and the report on significant currency MLRs shall be subject to the monetary and non-monetary sanctions provided under Subsec. X184.3 of the MORB/fines for delayed reports under Subsec. 4t92Q.2 of the MORNBFI. c. lmplementotion. In order to facilitate compliance with the MLR, stand-alone TBs, RBs, Coop Banks, and QBs shall undergo a one-year observation period beginning 0l January 2018 until the MLR takes effect on 0l January 20L9. Requirements during the observotion period. During this period, banks/QBs shall submit the MLR report quarterly on a solo basis to the Bangko Sentral, through the SDC. Each quarterly submission shall consist of the MLR reports for each month-end within a reference quarter. The report shall be submitted within thirty (30) banking/business days after the end of each reference quarter. For example, a bank's/QB's submission for the reference period covering 0l January to 31 March 2018 shall consist of the MLR on solo basis as of end-January, end- February and end-March. The report shall be submitted within thirty (30) banking/business days after end-March 2018. PageT of 14

The Bangko Sentral is not precluded from assessing a bank's/eB's compliance with the MLR during the observation period. Banks/eBs with liquidity ratios that are already at or near the prescribed minimum should not view the transition period as an opportunity to reduce their liquidity coverage. Where a bank/QB is unable to meet the MLR for two consecutive weeks during the observation period, the bank/QB shall immediately adopt a board-approved liquidity build-up plan. The plan should clearly articulate the bank's/eB,s defined strategies and timelines for meeting the required MLR by 0L January zOLg, and should include estimates of the liquidity ratio at every quarter prior to the effectivity date. The build-up plan shall be submitted to the Bangko Sentral, through the appropriate Central Point of Contact Department (CPCD), within ten (10) banking/business days after it is approved by the board. The CPCD concerned will evaluate the continuing compliance of the bank/eB with the said plan. ln case of non- compliance, the Bangko Sentral may require the covered bank/eB to undertake a set of actions. The Bangko Sentral may likewise impose enforcement actions as provided under subsection xL76.20/4L76e.20 of the MORB/MoRNBFt. subsection x176.414t76Q.4 MLR Disclosure requirements. A bank/QB shall disclose its MLR on a solo basis in its annual report or audited financial statement (AFS), as well as in the quarterly Published Balance Sheet (PBS) starting year 20L9." Section 8. The reports mentioned in ltem b of Subsection X176.3 of the MORB/Subsection 4176Q.3 of the MORNBFI shall be listed in Appendix 6/e-E to account for the reportorial requirements relative to the MLR. Section 9. The reporting template for the MLR is in Attachment 5. The guidelines governing the mode and manner of submission of the electronic reportorial templates shall be covered by a separate issuance. Part lll. Supervisory Framework for the Minimum Prudential tiquidity Requirements Section 10. The following subsections are hereby added to the MORB and MORNBFI: "subsection xl76.7l4Ll6eJ superuisory Framework lor the Minimum Pru de ntiol Liqu i dity Requ i re me nts a. General Provisions L While the minimum prudential liquidity requirements establish common parameters for stress testing, they should be viewed as minimum supervisory requirements. Covered banks/eBs are expected to conduct their own stress tests in accordance with part lx of Appendix 74/e-44a of

the MORB/MORNBFI as part of their liquidity risk management process in order to identify the risk drivers that may lead to drastic fluctuations in their liquidity positions. Accordingly, banks/QBs should be able to assess the level of liquidity they should hold, which could possibly go beyond the regulatory minimum. Where the Bangko Sentral is not satisfied with the adequacy of a bank's/QB's liquidity management framework or where it has particular concerns about a bank's/QB's liquidity exposures, it may require the bank/QB to comply with a higher liquidity requirement. 2. It shall be the responsibility of the board of directors and senior management, or the equivalent governing bodies in the case of foreign bank branches, to institute a system that would ensure compliance with the minimum liquidity requirements, the accuracy of their calculations, and the integrity of the related monitoring and reporting system. lt is likewise the responsibility of senior management to report shortfalls in the minimum liquidity requirements both to their board of directors immediately and to the Bangko sentral within the prescribed timelines. 3. As the stock of liquid assets is intended to serve as a defense against the potential onset of liquidity stress, banks/QBs are allowed to use their stock of liquid assets as necessary during a period of financial stress in order to meet unforeseen liquidity needs, thereby causing the LCR to temporarily fall below the minimum requirement or the MLR to be breached. under this condition, the Bangko sentral will assess the situation to determine the extent to which the reported decline in the LCR/non- compliance with the MLR is due to a bank-/QB-specific or market-wide shock and will accordingly provide the supervisory response necessary to address the circumstances. The action of the Bangko sentral shall be proportionate to the drivers, magnitude, duration and frequency of the reported liqu id ity deficit. In all cases, the Bangko sentral will be cognizant of the procyclicality of supervisory actions if applied in circumstances of market-wide stress. Likewise, the Bangko sentral will consider the potential for contagion to the financial system and the additional restricted flow of credit or reduced market liquidity due to actions to maintain a minimum LCR or MLR. Overall, the supervisory response will be based on a forward- looking assessment of macroeconomic and financial conditions of the financial system as a whole.

b. Liquidity ratios below the minimum In the event that a shortfall in the stock of HelA/eligible liquid assets occurs on three (3) banking/business days within any two-week rolling calendar period, thereby causing the LCR to fall below the minimum threshold/the MLR to be breached on such days, the bank/eB must notify the Bangko Sentral, through the appropriate supervising department, of such non-compliance within the banking/business day immediately following the occurrence of the third liquidity shortfall, notwithstanding the restoration of the LCR/compliance with the MLR on the day that the shortfall must be reported. The shortfall notice shall be signed by the bank/eB president or officer of equivalent rank, and by the officer charged with managing the liquidity of the bank/QB. lt shall contain the following minimum information: (1) The dates the shortfalls occurred; (2) The reason/s or factor/s leading to the utilization of the stock of liquid assets and non-compliance with the minimum requirement; (3) The action/s the bank/eB has taken and/or will take to achieve full compliance with the minimum requirement; (4) The expected duration and possible extent of the shortfall (although this may no longer be applicable if the LCR has been restored/MLR has been met); and (5) A commitment to submit its LCR/MLR Report weekly until the bank/eg is able to comply with the required LCR/MLR. A shortfall will not necessarily result in supervisory or enforcement action; at a minimum, it will entail heightened supervisory monitoring. The shortfall notice, together with the information gathered from the latest report of examination, regular prudential reports, available market information, and, if available, the internal management reports of the bank/eB, will serve as the basis of the Bangko Sentral in making an assessment of the extent of the liquidity deficit. The Bangko Sentral will also assess whether the non-compliance with the minimum requirement is temporary, part of a regular pattern or practice, or caused by an unusual event. The Bangko Sentral will require effective and timely remedial action from the bank/QB to address the deficiency in its liquidity position within a committed timeline under the following circumstances: (1) The liquidity requirement is not met for a prolonged period of time or if the Bangko sentral has determined that the bank/eB is otherwise materially non-compliant with the minimum LCR or MLR; or (2) The reported shortfall is caused by a firm-specific stress situation, i.e., based on operational issues of the bank/eB which are part of an outstanding supervisory concern (such as imprudent management of liquidity consisting of material and/or persistent breaches of liquidity

policies and limits, large funding mismatches and/or concentrations, undue reliance on high cost funds). Subject to the approval of the Monetary Board, banks/QBs may continue to have access to the credit and liquidity facilities of the Bangko Sentral during the period that the liquidity requirement is being restored notwithstanding non-compliance with standard conditions of access to such facilities that pertain to a bank's/QB's liquidity position." Section 11. Subsection 1176.3 of the MORB on sanctions is hereby deleted. The following subsections of the MORB and MORNBFI are hereby amended to read as follows: "Subsection XI76.2O|4L76Q.2O Superuisory enforcement octions. Consistent with Section X009/4009Q of the MORB/MORNBFI, the Bangko Sentral may deploy enforcement actions xxx and bring about timely corrective actions. xxx. Sanctions may likewise be imposed on a bank/QB and/or its directors, officers and/or employees. The Bangko Sentral reserves the right, upon authority of the Deputy Governor, SES, to require the submission of reports and information prescribed under ltem "b" of Subsec. XL76.L/4L75Q.1 and under ltem "b" of Subsec. X176.3/4L76Q.3 outside the regular reporting periods, and to conduct on-site inspections outside of regular or special examinations, for the purpose of ascertaining the accuracy of calculations of the minimum liquidity requirement/s as well as the integrity of the related monitoring and reporting systems. lf a bank/QB experiences a shortfall in respect of its minimum prudential liquidity requirement and fails to restore its liquidity position within the committed timeline, the Bangko Sentral may deploy more stringent enforcement actions. In cases where a bank's/QB's liquidity problem is deemed to be exceptionally serious from the outset, or when the bank/QB refuses to restore the required liquidity position, the Bangko Sentral may employ more drastic measures based on existing laws, rules and regulations." Part lV. Relaxation of Liquidity Metrics for Thrift Banks, Rural Banks, Cooperative Banks and Quasi-Banks Section 12. The relaxation of the following liquidity metrics under the FX Manual shall take effect on 01 January 2019 for TBs, RBs and Coop Banks: (a) The 3O%o cover for foreign currency liabilities in their respective foreign currency deposit units (FCDUs) in the form of liquid assets; and (b) The foreign currency cover in the same currency as that of the corresponding

foreign currency deposit liabilities. a. Section 73 of the FX Manual is hereby amended as follows: "Section 73. Foreign Currency Cover Requirements. Depository banks under the foreign currency deposit and expanded foreign currency deposit systems shall maintain at all times a LOOo/o cover for their foreign currency liabilities, except for USD-denominated repurchase agreements (R/P) with the BSP. Provided, That violation of the terms and conditions of the USD-denominated R/P facility shall subject the borrowings of the bank to the FCDU/EFCDU asset and liquid asset cover requirements. For purposes of complying with these requirements, the principal offices in the Philippines of the authorized banks and all their branches located therein shall be considered a single unit. The foreign currency cover shall consist of the net carrying amount of the following: L. xxx 2. xxx 3. Further, at least thirty percent (3lo/ol of the cover requirement for foreign currency liabilities in the FCDU/EFCDU shall be in the form of liquid assets until 31 December 2018. Effective 01 January 20L8, the liquid asset cover requirement for FCDU/EFCDU liabilities shall be as follows: Liquid asset cover UBs/KBs o% TBs and RBs/Coop Banks 30% Effective 0L January 20L9, the liquid asset cover requirement for FCDU/EFCDU liabilities shall be as follows: Liquid asset cover UBs/KBs/TBs and RBs/Coop o% Banks Assets eligible as liquid asset cover for FCDU/EFCU shall be as follows: a. Foreign currency cash on hand; b. XXX c.xxx d. xxx e. xxx f. xxx g. xxx h. XXX Page L2 of t4

i. Due From Head Office/Branches/Agencies Abroad - FCDU up to the extent of the Due To Head Office/Branches/Agencies Abroad - FCDU. Any resulting balance of Net Due From Head Office/Branches/Agencies Abroad - FCDU shall not be eligible for thirty percent l30o/ol liquid asset cover. "The LOOo/o asset cover and thirty percent (3O%l to be held in the form of liquid assets enumerated above, shall be unencumbered, except as otherwise provided in the second paragraph of ltem f of Section 73.1. "The applicable template on certification of compliance with the FCDU/EFCDU cover requirements shall be as follows: . Appendix 15.1, which shall be in effect until 31 December 2OL7; and o Appendix 15a for UBs/KBs starting 01 January 20L8, and for TBs, RBs and Coop Banks starting 0l January 2OLg. . Appendix 15b for TBs, RBs and Coop Banks from 01 January to 31 December 2018. "Sonctions: xxx" b. Section 75 of the FX manual is hereby amended as follows: "Section 75. Currency Composition of the Cover. FCDUs of TBs and RBs and Coop Banks shall maintain the foreign currency cover in the same currency as that of the corresponding foreign currency deposit liability until 31 December 2018. Starting 01. January 2OL9, TBs, RBs and Coop Banks may maintain the foreign currency cover in any foreign currency acceptable with the Bangko Sentral. "FCDUs/EFCDUs of UBs/KBs shall maintain not less than seventy percent (7O%')of the foreign currency cover in the same currency as that of the liability and thirty percent (3O%l or less, at the option of the FCDU/EFCDU, may be denominated in other acceptable foreign currencies until 31 December 20L7. Starting 01 January 2OL8, UBs/KBs may maintain the foreign currency cover in any foreign currency acceptable with the BSP." c' Appendix 15a of the FX Manual shall be replaced with Attachment 6 from 0L January 2019 onwards. Section 13. The relaxation of the liquidity floor reserve requirement for government funds shall take effect on 01. January 2OL9 for TBs, RBs and Coop Banks. In this regard, subsection X240.6 of the MORB is hereby amended as follows: "Subsection X240.6 Liquidity floor. Unless otherwise prescribed by the Monetary Board, authorized government depository banks other than the Bangko Sentral, and authorized private banks shall, inclusive of the required reserves against deposits and/or deposit substitutes, maintain a fifty percent (5oo/ol liquidity floor with respect to deposits of, borrowings from, and all other liabilities to, the

Government and government entities, in the form of transferable government securities which represent direct obligations of the National Government, until 31 December 2017. Effective 01January 2018, the liquidity floor reserve requirements shall be as follows: Required liquidiW floor For UBs/KBs 0% Government deposits and government deposit substitutes shall continue to be subject to the reserve requirements orovided under Section X253. For TBs and 50% Inclusive of the required reserves against deposits and/ or RBs and Coop deposit substitutes. Banks Effective 01January 2019, the liquidity floor reserve requirements shall be as follows: Reouired liouiditv floor For UBs/KBs/ OYo Government deposits and government deposit substitutes TBs/RBs/ shall continue to be subject to the reserve requirements Cooo Banks provided under Section X253. xxx" Section 14. Effectivity. This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: Governor Ofir"aruary 2018

Attachment 1 Page t of 2 Appendix TablQ-4ac (Appendix to Subsec. X776. 1/4176Q. 1) (FoRMArl SWORN CERTIFICATION OF COMPTIANCE WITH THE LIqUIDITY COVERAGE RATIO {LCRI REQUIREMENTS <NAME OF BANK/QB> CERTIFICATION Pursuant to Subsection X176.L/4L76Q.L of the Manual of Regulations for Banks/Manual of Regulations for Non-Bank Financial Institutions, we hereby certify that the Bank/QB has fully complied with the minimum LCR requirement on all calendar days of the month ended 20-. We further certify to the best of our knowledge that the above statement is true and correct. President/CEO or Country Head [Other outhorized signatories for Cotegory A-1 report] TIN: TIN: TIN: [Officer Responsible for the Compliance Officer M o n oge me nt of Liqu i dityl TIN: TIN: SUBSCRIBED AND SWORN TO before me this _ day of 20-__, Philippines affiant/s exhibiting their government-issued identification cards as follows: NAME GOVERNMENT-ISSUED ID DATE OF ISSUE PLACE OF ISSUE Witness my hand and notarial seal on the date and place above-written. NOTARY PUBLIC Doc. No. _; Page No. _; Book No. _; Series of 20

Page2 of 2 (ln cose of occurrences of non-complionce during the month, the certification should read as follows:) Pursuant to Subsection X175.1./4L76Q.L of the Manual of Regulations for Banks (MORB)/Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), we hereby certify that the Bank/QB has fully complied with the minimum LCR requirement on all calendar days of the month ended 2O_, except on (example): Dates (Day) LCR Compliance (%) 11 January 2018 (Thursday) 9956% 15 January 2018 (Monday) 98.L0% 16 January 2018 (Tuesday) 98.97% A shortfall notice containing the minimum information required under Appendix 74a/Q-44b of the MORB/MORNBFI was submitted to the Bangko Sentral on , through the appropriate Central Point of Contact Department (CPCD). We further certify to the best of our knowledge that above statement is true and correct. President/CEO or Country Head [Other authorized signotories for Cotegory A-1 report] TIN: TIN: TIN: [Officer Responsible for the Compliance Officer M onageme nt of Liquidityl TIN: TIN: SUBSCRIBED AND SWORN TO before me this _ day of 20--, at Philippines affiant/s exhibiting their government-issued identification cards as follows: NAME GOVERNMENT-ISSUED ID DATE OF ISSUE PLACE OF ISSUE witness my hand and notarial seal on the date and place above-written. NOTARY PUBLIC Doc. No. _; Page No. _; Book No. _; Series of 20_

Attachment 2 Appendix TaalQ-aab Annex A-1 UQUtDtTy METRTCS FOR LEVEr 2 ASSETS Pursuant to paragraph L7 of Part l.lll. of Appendix 74a/Q-44b, a security must meet the following metrics to be eligible as a Level 2 Asset: (a) The security has a long term issuer rating that is investment grade or its equivalent; (b) The security is traded in the secondary market with an ample number of market participants on both the buying and selling side of transactions; and (c) There is a means to obtain market information on a security (i.e., bid, ask and done price). For peso securities, information on trade volume should also be available.

Attachment 3 DEADLINE 15 banking days after 30 banking da)6 after SUBMISSION: Original copy to the end of LCR measurement end of LCR measurement Supervisory Data Center (SDC) date (solo basis) date (consolidated basis) FOR UNIVERSAL BANKS/COMMERCIAL BANKS AND THEIR SUBSIDIARY BANKS AND QUASI.BANKS (Name of BanUQB) (Code) Address BASEL III LIQUIDITY COVERAGE RATIO REPORT (lndicate if for JPY', etc.) As of (Month/Quarter-end) REPUBLIC OF THE PHILIPPINES ) ) s.s. We solemnly swear that all matters set forth in this report and all its supporting schedules are true and correct, to the best of our knowledge and belief. I Signatures of Category A-1 Authorized Signatories] _) (Signature of (Officer charged with liquidity management function) SUBSCRIBED AND SWORN TO BEFORE ME this day of 20 affiants exhibiting to me their Community Tax Certificates, to wit: Name CTC No. Date/Place lssued Notary Public Until December 31, 20 PTR No. Place Doc. No. Page No. Book No. Series of

(Name of BanUQB) Name of BanUQB Basel lll LCR Report (Solo / Consolidated) As of (MontlVQuarterEnd) (lndicate if tor "SINGLE CURRENC\F or for 'PHP' or for 'USD'f EUR'fCNffJPf, etc.) PART I. CALCULATION OF LIOUIDITY COVERAGE RATIO (ln Abrolute Amount) A. Totaf Stock of Hlgh-Quallty Liquid Asret! (Aftor Capl [Net of A.3 an.t Aq A.1 StockofLevel 1 Assets B, Totaf Net Gash Outflorc fltlef of 8.1 and B.2l c. LrQUtDtw covERAGE RAT|O IAIB'

(Name of BanUQB) Name of BanUOB Basel lll LCR Report (Solo / Consolidated) As of (Month/Quarter-End) (lndicate if for "SINGLE CURRENCY' or for "PHP" or for "USD"/"EUR"/"CNY'/"JPY", etc.) PART ll. TOTAL STOCK OF HIGH-QUALITY LIQUID ASSETS (HOLAs) (ln Absolute Amount) Item Nature of ltemr/ Amountz Factor Weighted Amount (a) (b) (axb) A. Stock of Level 1 Assets fSum of A(1) to A(1)l 0.00 0.00 (1) Cash on hand 0_00 'loo% 0.00 (2) Bank reserves in the BSP (includino excess reserves) 0.00 100% 0.00 (3) Ovemight and term deposits with the BSP, including reverse repurchase transactions 0.00 100% 0.00 where the BSP is th6 countemartv (4) Efioible securities" that are tsum of AU)h) and A4)(bll 0.00 0.00 - (a) lssued or guaranteed by the Philippine National Govemment (NG) and the BSP'' 0.q) 0.00 tsum of AU)h)(il to AH)h)(iil| (i) Peso - Denominated 0.00 10OYo 0.00 (ii) Foreion Curencv - Denominated 0.00 1000/. 0.00 (b) With a 0% Basel ll credit risk weight issued or guaranteed by tsum of AUt(b]lil to Al4l(b)liill - 0.00 0.00 (i) Sovereiqns, central banks or Dublic sector entities (PSEs) of foreion countries 0.00 1000/" 0.00 (ii) Multilateral oroanizations'' 0.00 100'/. 0.00 Add / Deduct: 4.1 Adlustments to Stock of Level I Assets INet of Aln) and A.1(21 0.00 0.00 (1) Add: Level 1 assets lent or placed as collateral under short-term" secured funding, 0.00 0.00 secured lendinq or collateral swap transactions lSum of A.1h)h) & A.1(1)(il] (a) Cash or deoosits with the central bank 000 1000/o 0.00 (b) Level 1 elioible securities 0.00 100./. 0.00 (2) Deduct: Level 1 assets bonowed or received as collateral under sho(-term" secured funding, 0,0$ 0.00 secured fending or collateral swao transactions [Sum of A.1(2)(d & A.1(Z(UI (a) Cash or deoosits with the central bank 000 1000/. 0.00 (b) Level 1 elioible securities 0.00 100% 0.00 A.2 Adiustod Stock of Level 1 Assets- lSum or Net of A and A.1I 0.00 0.oo B. Stock of Level 2 AsseG ISum of B(1) to B(1)l 0.00 0.00 (1 ) Eligible secunties* with a 20% Basel ll credit risk weight issued or guaranteed by o,@ 0.00 lsum of B(l)h) to Bn)(dl - (a) Govemment-Owned and Controlled CorDorations (GOCCS) and Local Govemment Units (LGUs) 0.00 85% 000 (b) Sovereions. central banks or PSEs of foreion countries 0.00 85Yo 0.00 (c) Multilateral development banks (MDBs) 0.00 85v. 0.00 (2) Eligible securities3/ with a 50% Basel ll credit risk weight issued or guaranteed by s.00 0.00 lsum of B(Zhl to B(Z(dl - (a) Govemment-Owned and Cortrolled CorDorations (GOCCs) and Local Govemment Units (LGUs) 0.00 50% 000 (b) Sovereions. central banks or PSEs of foreion couniries 0.00 50% 0.00 (c) Multilateral d€velopment banks (MDBs) 0.00 50% 0.00 (3) Elioible corDorate securities" with lono-term credit ratino of /Sum of B(gh) end Bt3)lb)l o00 0.00 (a) At least AA- or its equivalent - 0.00 85% 0.00 (b) Between A+ and BBB- or their eouivalent 0.00 500/. 0.00 '4) Elioible common eouitv shares- that are included in the main index of an oroanized exchanoe 0.00 50% 0.00 Add / Deduct: B.'l Adiustments to Stock of Level 2 Assets t/Vet of B.1n) and 8.1(2lI 0-00 0.00 (1) Add: Level 2 assels lent or placed as collateral under short-term" secured funding, 0,00 0.00 secured fendinq or collateral swao transac;tions fsum of 8.1(1)h) to B.1ftYdD (a) Ef ioibfe securities- wilh a 20o/" Basel ll credit risk weioht 0.00 85V. 0.00 (b) Elioible securities" with a 50% Basel ll credit risk weioht 0.00 500/. 0.00 (c) Elioible comorate securities- rated at least M- or its eouivalenl 0.00 850 0.00 (d) Eligible conrorate securities" rated between A+ and BBB- or their equivalent 0.00 50'/. 0.00 (e) Elioible common eouitv shares" that are included in the main index of an oroanized exchanoe 000 500/. 0.00 (2) Deduct: Level 2 assets bonowed or received as collateral under short-lerm" secured funding, 0.00 0.00 secured lendino or collateral swao tGnsactions lsum of 8.1(2tht to 8.12)b)l (a) Elioible securities- with a 20% Basel ll credit risk weioht 0.00 85% 0.00 (b) Elioible securities" with a 50% Basel ll credit risk weioht 0.00 50v" 0.00 (c) Elioible corDorate securities" rated at leaslM- or its eouivalent 0.00 85v. 0.00 (d) Eliqible corporate securities" rated between A+ and BBB- or their eouivalent 0.00 50./. 0.00 (e) Elioible common eouitv shares" that are included in the main index of an orcanized exchanoe 000 50% 0.00 8.2 Adiusted Stock of Level 2 Assets"' lsum or,Vet of B and B.1I 0_00 0_00 C. Totaf Stock of High Quality Liquid Assets Beforo Cap Adjustment [Sum of A and B] 0.00 0.00 D. Adiustment for 40o/o Cap on Lcvol 2 Ass€ts IMax {8.2 - %'A.2, 0)l 0.00 0.00 E. Totaf Stock of High Quality Liquid Assets Aftor Cap Adiustment [Net of C ancl D] 0.00 0.00 PaSe 3 of 13

1/ To be included in the stock of HQLA, the assets owned and the collaterals received under reverse repos/securities borrowings/derivatives transactions must meet the following eligibility criteria as prescribed under Section lll.B(1) of the LCR standard: a. Asset and market liquidity characteristics; and b. Operational requirements for monetization. 2/ Refers to the outstanding balance of the account as of measurement date, except for debt and equity securities which shall be reported using their current market values. 3/ In addition to satisfying the HQLA eligibility criteria, the asset must not be an obligation by a bank or any of a bank's financial allied undertakings in order to be included in the stock. 4/ Securities which are guaranteed by the Philippine NG but were issued and remain as liabilities of a bank will not qualify for the stock of HQLA. The only exception is when the bank also qualifies as a GOCC with the highest credit quality, in which case, the securities issued by said bank could qualify for Level 2 assets if all necessary conditions are satisfied. 5/ Eligible only up to the amount of the net cash outflows in that specific foreign currency. This only applies to single-currency and consolidated LCR. 6/ Include the Bank of International Settlements, the lnternational Monetary Fund, the European Central Bank and European Community and the multilateral development banks (MDBs). 7/ Pertains to maturity date up to and including 30 calendar days. 8/ The adjusted amount of Level 1 and 2 assets are computed for purposes of calculation of the 4Oo/o cap on Level 2 assets to take into account the impact on the stock of HQLA of the amounts of Level 1 and Level 2 assets involved in secured funding, secured lending and collateral swap transactions maturing within 30 calendar days. Please refer to Annex B of the Appendix 74a for details.

(Name of BanUQB) Name of BanUQB Basel lll LCR Report (Solo / Consolidated) As of (Month/Quarter-End) (lndicate if for "SINGLE CURRENCY" or for "PHP" or for "USD"/"EUR,/.CNY,/',Jpy',. etc.) PART III. TOTAL EXPECTED CASH OUTFLOWS (ln Absolute Amount) uu[tow Item Nature of ltemtr Amountz Rates W€ighted Amount (a) (b) (axb) A. DoposiG fsum of A.1 to A.q 0,00 0,00 1. Retaif funding ISum of A.1.a to A.1.cl o,{to 0-m a. Pho 500,000.00 and below 0.00 5'/. 0.00 b. Php 500,000.01 - Php 4,000,000.00 0.00 100/" 0.00 Pnp 4,uuu,uuu.00 0.00 150/o 0.00 2. Wholesafe fundina [Sum of A.2.a. to A.2.cl 0.00 0.00 a. Operational deposits 0.00 30% 0.00 b. Non-operational deposits (including deposits received under conespondent banking and brokering 0.00 0.00 services) /Sum of A.2.b.ito A.z.b.ivl L Frlfy insured by the PDIC ISum of A.2.b.i.(1) and A.2.b.Le)t o_00 0.m (1 ) Philippine NG; LGUS; GOqCs; BSp; sovereigns, cenlral banks, pSEs of foreion countries: MDBs 0.00 20v" 0.00 (2) Non-f inancial corporates 0.00 200/" 0.00 ii. Not fufly insured by the PDIC lSum of A.2.b.ii.(l) & A.2.b.ii2n 0,00 F;00 (1) Philipoine NG: LGUS; GOCCs; BSp; sovereigns, central banks, pSEs of foreion countries: MDBS 0.00 40% 0.00 (2, Non-nnanctat corpoEtes 000 40v. 0.00 iii. Financial entities (i.e., bank, financial corporates, trust & other fiduciaries, benificiaries, conduits. SpVs 0.00 100v" 0.00 and affiliated entities ofthe bank) wnolesale clreils not included in the above related cateoories 0.00 100% 0.00 J. rem oepo9rls 0.00 ^esrncreq Oo/o 0.00 + ueposrrs preogeo under hold-out aaTanoements-' 0.00 0o/. 0.00 B. Unsecured Wholesale Funding ISum of 8.1 to B.ll 0.0r' 0.00 '1. ]'niltpptne NU; LGUS; Guccs; Bsp; sgvereigns, central banks, psEs of foreiqn countries: MDBS 0.00 40% 0.00 4. r\orFrnancrar corDoGlles 0.00 4OYo 0.00 0.00 r00% 0.00 4. Other wholeslle clients not included in the above related cateqones 0.00 100% 0.00 C. Secured Fundingsrfsum of C.l to C.Sl 0.00 0.00 1. Backed by Level 1 assets OR fundinq provided bv the BSp 0.00 0% 0.00 2. Backed by Level 2 assets with 15% haircut 0.00 150/" 0.00 3. Backed by non-HQLA AND funding provided by the phitippine NG or by LGUs 0.00 25% 0.00 that are assigned with 20% credit risk weiqht or lower. or bv MDBS 4. Backed by Level 2 assets with 50% haircut 0.00 50v" 0.00 c. Arr olner marunng secureg runolng transadlons not specilred in the above related cateoories 0.00 100y" 0.00 D. Derivatives Contracts fSum of D.1 to D,2l 0,00 0,00 1. Contractual derivatives cash outflowso' 0.00 100% 0.00 2. Aqqitional liquidity requirements related to lsum of D.2.a to D.2.fl - a. r,otemtat vatuatton changes on non-Level 1 posted collateral securinq derivatives and other transactions 0.00 0.00 0.00 20v" 0.00 o. Mafter vqtualton cnanges on oenvaltves or other transactions"' 0.00 100% 0.00 c. Downgrade triggers embedded in financing transactions, derivatives and other conlractse/ 0.00 1000/" 0.00 q. trxcess non-qegregaleo Dy the bank 0.00 100% 0.00 e. Contractually required collateral which oostino is not vet demanded", 0.00 1000/. 0.00 f. Collateral substitution to lower-quality HQLA or non-HeLA 0.00 100o/o 0.00 E. Structured Financing lnstruments (SFls) fsum ofE l and E,2l 0.00 0,00 1. Asset-backed securities'- and other SFls 0.00 100yo 0.00 2. Asset-backed commercial paper, conduits, securities investment vehicles and other such financing facilities 0.00 0.00 [Sum of E.2.i and E.2.ii] malunng penoo 0.00 100v" 0.00 b. with embedded options in financing anangements that allow for the retum of assets or 0.00 t00% 0.00 potential liquidity supportls/ F. Committed Business Facilitiesrd fsum of F.1 to F.6I 0.00 0.@ 1. Retail clients 0.00 5% 0.00 z. rnupptne Nb; LUUs; uguus; sov€retgns, central banks, psEs of foreign countries; MDBs 0.00 10% 0.00 o. r\uil-flnanqrat coloorales 0.00 10% 0.00 {. panxs ano quast-oanKs suojeq Io prudenttat suDervision 0.00 400/. 0.00 0.00 100% 0.00 o. uner enrues nol related cateqones 0.00 100v. 0.00 G. Other Contractuaf Obligation3 Within a 30day poriod [Sum of G.1 to G.q 0.(E 0.00 1. Other contractual lending obligations to financial inslitutions not caDtured in the orior related cateoones 0.00 100% 0.00 2. Excess of contractual obligations to retail and non-financial entity clients which are not caDtured in the Drior 0.00 100yo 0.00 related categories over total contractual inflows from said clientsrT/ 3. Forward transactions that start within and mature beyond the LCR geiod ISum of G.3.c to c.3nt o.o0 I 0.m 0.00 1000h 0.00 0.00 1000/" o.00 4. Total other contractual cash outflows nol captured in the above related categories2o/ 0.00 100% 0.00 (Pleaso enumerate, if anv, Soe table below.)

PART III. TOTAL EXPECTED CASH OUTFLOWS (ln Ab3olute Amount) Item Nature of lteml/ Amountz Rates Weighted Amounl (a) (b) (axb) H. Other Contlngent Funding Obligatlons lsum of H.1 to H.6I 0.00 0.00 1 . Unused Dortions of commitments to extend credit throuoh credit carcs 0.00 3v" 0.00 2. Guarantees issued related to trade finance obligations directly underpinned by the movement of goods and/or 0;00 0.00 the orovision of s€Nices [Sum of H.2.e to H.2.fl a. Siqht lefters of credit (LCs) outstandino 0.00 3% 0.00 b. Usance LCs outstandino 0.00 3% 0.00 c. Defened LCs orjtstandino 0.00 3% 0.00 d. Revolvinq LCs outstandinq 0.00 3Yo 0.00 e. ExDort LCs of credit confirmed 0.00 30/" 0.00 f- Shiosida bond / aiilav bills 0.00 3% 0.00 3. Unconditionally revocable uncommitted credit lines and business facilitiesz" 0.00 3V" 0.00 4. Total oth6r contingent funding obligations not captured in the above related categories 0.00 3v, 0.00 (Please enumemte. if anv. See table below I 5. Total contingent liabilities that will materialize during the LCR period'z 0.00 100% 0.00 (Please enumerate. if anv. See table below.) 6. Customer short positions covered by other customers' non-HQLA collateral 0.00 500 0.00 f. Totaf Expocted Cagh Outflows ISum of A to HI 0,00 0.00 ADDITIONAL ITEMS NOT CAPTURED IN THE ABOVE RELATED CATEGORIES: Amount G.4 Jther contractuaf cash outflows tsum of G.41t to G.$-'tl 0.00 (21 (3) 4 (5) H.4 (1) Jmer conrf ngonr ?undrng obtigafiona - Isum of H.41) to H./t(-tl 0.00 (3) a4l (5) rgent fiabif ities that will meterialize durins tho LCR Deriod (1) - tsum of H.Snt to H.S(-lt 0.txt (t (!

1l The calculation of expected cash outflows per category shall be based on the assumptions and provisions set forth under Section lll.C of the standard. Where applicable, cash outflows include interests and installments that are expected to be paid during the LCR period. 2l Refers to the outstanding balance (including interests and installments that are expected to be paid during the LCR period) of the account or instrument as of measurement date, except when otherwise stated herein. 3l Refers to term deposits maturing beyond the 30-day LCR period and are contractually/legally restricted for withdrawal within the LCR period (e.9., LTNCTDs maturing beyond the 30-day LCR period). 4l Refers to deposits pledged/held-out securing credit facility or loan which will mature or be settled beyond the LCR period and are contractually/legally restricted to be withdrawn until said loan is fully paid/seftled. 5l The cash outflow shall be calculated based on the amount of funds raised through the transaction and not on the value of the underlying collateral. In case of collateral swaps or collateral lending transactions, the outflow amount shall be based on the current market value of the asset received. 6l Using the bank's existing valuation methodologies, derivatives cash flows shall be calculated as follows: a. On a gross basis (i.e., inflows cannot offset outflows) by counterparty, except for contracts that inherently require net settlement (e.9., non-deliverable forward foreign exchange contract)which may reflect a net cash flow figure. b. Where derivative payments are collateralized by HQLA, net of any corresponding cash payment or collateral inflows that would result, all other things being equal, from contractual obligations for cash payment or collateral to be provided to the bank; provided, the bank will be legally entitled and operationally capable to re-use the collateral in new cash raising transactions once the collateral is received. In case of "in the money" options, said options shall be assumed to be exercised when they are "in the money" to the option buyer. 7l The outflow shall be calculated based on the notional amount required to be posted as collateral after applying the relevant haircut prescribed for Level 2 assets and as agreed for non-HQLA assets; and net of collateral received on a counterparty basis (provided that the collateral received is not subject to restrictions on re-use or rehypothecation). 8l Refers to the largest fluctuation in the amount of collateral posted for the last24 months preceding the LCR measurement date, calculated as follows: a. For each day, sum up the current market value of all collaterals posted by the bank for its derivatives contracts and other transactions; then, b. For every 30day period (apply a 30-day moving window), find the difference between the highest and the lowest amount of accumulated collateral posted; then, c. Among the approximately 730 observed differences, determine the largest amount of difference in collateral posted. 9l The outflow shall be equivalent to the additional collateral or contractual cash outflow required in the contract that will have to be posted or funded. 10/ The outflow shall be based on the market value of the collateral held. 111 The outflow shall be based on the market value of the collateral that will have to be posted. 12l lf HQLA collateral (e.9., Level 1 assets) may be substituted for Level 2 assets (e.g., Level 2 assets), the outflow amount shall be based on the market value of the received HQLA collateral after applying the respective haircut in the LCR. For substitution for other HQLA collateral of a lower liquidity value, an outflow amounting to the market value of the received collateral multiplied by the difference between the haircuts of the received collateral and the potential substitute collateral should be applied. 13/ The outflow shall be based on the total outstanding amount of these instruments maturing within the 30-day period. 141 The outflow shall be based on the amount of the maturing debt. 15/ The outflow shall be based on the amount of assets that could potentially be returned, or on the liquidity required. 16/ The outflow shall be calculated using the currently undrawn portion of each committed obligation, net of HQLA collateral, if any, provided (i) the bank is legally entitled and operationally capable to re-use the collateral in new cash raising transactions once the facility is drawn; and (ii) there is no undue correlation between the probability of drawing the facility and the market value of the collateral. The collateral can be netted against the outstanding amount of the committed obligation to the extent that this collateral is not already counted in the stock of HQLA. 17l Provided the total of all contractual obligations to extend funds to retail and non-financial corporates within the next 30 calendar days (not captured in the prior categories) exceeds 50% of the total contractual inflows due in the next 30 calendar days from these clients. 18/ For forward reverse repos (with a binding obligation to accept), the cash outflow should be netted against the market value of the collateral received after deducting the applicable haircuts. 19/ In case of forward collateral swaps, the net amount between the market values of the assets extended and received after deducting the haircuts applied to the respective assets in the LCR counts towards "other contractual outflows" or "other contractual inflows" depending on which amount is higher. 2Ol Any other contractual cash outflows such as outflows to cover unsecured collateral borrowings, uncovered short positions, dividends or contractual interest payments. Also includes: (i) cash flows arising from purchase of non-HQLA that are executed but not yet settled at the LCR measurement date; and (ii) outflows of HQLA-type assets that are or will be excluded from the bank's stock of HQLA due to operational requirements. 211 The outflow shall be calculated using the undrawn portion of each unconditionally revocable uncommitted obligation. 221 The drawdown shall be calculated based on the contracted amount, on the undrawn portion of the facility, or on the value of the fund or debt instruments, whichever is applicable

(Name of BanUQB) Name of BanUQB Basel lll LCR Report (Solo / Consolidated) As of (Month/Quarter-End) (lndicate if for "SINGLE CURRENCY" or for "PHP" or for "USD"/"EUR"/"CNY'/"JPY", etc.) PART IV. TOTAL EXPECTED CASH INFLOWS (ln Absolute Amount) Innow Itom Nature of lteml/ Amount Rates Weighted Amount (axb) a A. Secured Lendingz fsum of A.1 to A.5l 0.00 0.00 1. Level 1 assets 000 oo/" 0.00 2.Level2 assetswith 15% haircut 0.00 1SYo 0.00 3. Level 2 assets with 50% haircut 0.00 500/" o.oo 4. Mamin lendino backed bv all other collaleral 000 500/" 0.00 5. All other collaterals 0.00 100% 0.00 B. Loans, Recoivables and Other Credit Facilities!'{ [Sum of 8.1 to B.g 0.00 0;00 1. Retail clients 0.00 50% 0.00 2. Philiooine NG: LGUs: GOCCs: sovereions. PSES of foreion countries: MDBs 0.00 50v" 0.00 3. Non-fi nancial comoEtes 0.00 50% 000 4. Banks: financial corDorates: trust and other fiduciaries: beneficiaries: BSP: and cenlral banks of foreion countries 0.o0 1000/" 0.00 C. Other Cash lnflows [Sum of C.1 to C.8] 0.00 0.00 1. Deposits held with other financial instilutions for non-oDerational oumoses 0.00 100v" 0.oo 2. OeDosits Dledqed aoainst an undrawn credit line or business facilitv 000 'looo/" 0.00 3. Cash balances arisino from the omvision of bmkerino seruices end similrr amnoemenls 0.00 1000h 0.00 4. Cash balances released from seoGoated accounts held for the oroteciion of customer tradino assets"' 0.00 100% 0.00 5. Cash inflows associated wilh non-HOLAs"' 0.00 100% 0.00 6. Forward transactions that start within and mature bevond the LCR oeriod o rxt 0.(X) a. Reourchase aoreements 0.00 lOOo/o 0.00 b. Collateral swaos"' o.00 1000/" 0.00 7. Net derivatives cash inflows'' 0.00 100v, 0.00 8. other cash inflows not captured in above inffow caleqories (Please enumerate. if anv. See table below.) 0.00 1000/" 000 D. Totaf Expected Cash Inflows Before Ceiling fSum ot A to Cl 0.00 0.00 E. Adjustment for 75'/. Ceiling [Max (D - Paft ill.l'7s/q 0]l 0.@ 0;00 F. Totaf Expected Cash Inflows After Ceiling frvet of D and El 0.00 0,00 ADDITIONAL ITEMS NOT CAPTURED IN THE ABOVE RELATED CATEGORIES: Amount c.8 Other cash Inflows [Sum of C.8ll] to C.8G-ll 0.00 - (2\ (3) (41 (5)

1l Cash inflows considered include only inflows from outstanding exposures that are contractually due within the LCR period, are fully performing, and for which the bank has no reason to expect a default within the LCR period. This shall exclude those instruments or transactions enumerated under Section lll.C paragraph 69 of the LCR standard. With respect to determining the maturity, unless specifically prescribed, the instruments or transactions included in the calcuf ation of expected cash inflows follows the assumptions set forth under Section lll.C paragra ph 22 of the LCR standard. 2t Includes reverse repos, securities borrowings and collateral swaps with maturities within the LCR period, except those which collateral is re-used (i.e., rehypothecated) and is used to cover short positions that could extend beyond 30 days. Short positions include both instances where in its 'matched book' the bank sold short a security outright as part of a trading or hedging strategy and instances where the bank is short a security in the 'matched' repo book (i.e., it has borrowed a security for a given period and lent the security out for a longer period). 3t Where applicable, cash inflows include interests and installments that are expected to be received during the LCR period. This also includes checks and other cash items. 4l Except revolving credit facilities, includes all credit transactions, either secured or unsecured, that are fully performing and are contractually due within the LCR period. Thus, non-performing loans and past due loans should be excluded. 5I Provided these segregated balances are maintained in HQLA. 6t Also include: (i) cash flows arising from sale of non-HQLA that are executed but not yet settled at LCR measurement date; (ii) interest income from non-HQLA expected to be received within the LCR period; and (iii) HQLAtype assets that are or will be excluded from the bank's stock of HQLA due to operational requirement. 7t The cash inflow to be recognized should be net of the market value of the collateral extended after deducting the applicable hai 8t In case of forward collateral swaps, the net amount between the market values of the assets extended and received after deducting the haircuts applied to the respective assets in the LCR counts towards "other contractual outflows" or "other contractual inflows" depending on which amount is higher. 9l Calculated in accordance with the methodology described in Section lll.C paragraphs 42 45. Where derivatives are - collateralized by HQLA, cash inflows are calculated net of any corresponding cash or contractual collateral outflows that would result, all other things being equal, from contractual obligations for cash or collateral to be posted by the bank, given these contractual obligations would reduce the stock of HeLA.

AVAILABLE UNENCUMBERED LNUTD ASSETS (Name ot BantdOB) Name of BanldeB As ol (tulonth/Qua.tsr€nd) Pate 10 of 13

Part lll.A - Deposits {Name of BanUQB) Name of BanUQB As of (Month/Quarter-End) t{el Dus to H.rd Offico/ Account Description Financial Non-Financial Trust Non- Br.nchss/Ag€nclsg Due to Other Governmentl/ Banksr/ Individualsl/ (Phlllpplne Brrnch ot Otherss/ Total Corporationlr Gorporationr/ Departmentlt Residentl/ Banks{ Forclan Brnkcl 3 . Retail Fundinq 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 a. 500.000.00 and below 0.00 b. 500.000.01 to 4.000.000.00 0.00 c. 4.000.000.01 and above 0.00 2. Wholesale Fundinq 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 a. ODerelional deoosits 0.00 b. Non-ooerational deDosits 0.00 !. Restricied term doDosits 0.00 l. Deposits oledqed as collateral or under hold-out arranoements 0.00 fotal Deposits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1/ AfrounE should @ncrl. *rtr FRP S.h.dut€ 22 2/ N.l ofR$lrici.d Ltu d.pctlll 5 t D.po.n pLdt.d.3 @&r.d or und€r hotdai edng.m€nE 3/ Anount lhoold @rrlodn ihc not dihE@ of Du. To tt ad Otf Lorss h Op.60on) ol iho FRP Bd5ne shetADdnl .hould b. ED it dlfi.En@ r. {.i Du. FEm Hed ofrcdBdEh.tAg.tot6 {phnirptna 6Erch of a to€ign b.nk). 4 R@ndl€ wirh FRP s.h.d!|.. ag .nd 39A ngtudng rnhh on. month 5/ Includ.. InbB.t .rp*led io b€ plid to dapodr llabrlnG dudng 30n.y LcR p€riod 'l.

Pa.t lll.B & C. Whole3ale Funding (Name of BanUQBl Nem6 of B€nldQB A3 of(Momhr'Qudd-End) Fin.nclrl Li.bilftb. Fiurcad LlrHltrbr &cedh.Fd Unrcond It .tvdtE! with Accoqm D.&dptlon Bill. P.ylblcl Sqbotdlded R.d.cmbb Erpan- or Finlnca Lor$ Hsld for Trrdingil V.lh thrcugh Bdd. Payrble, olh.6z Tol.l Pnfomd Shrnr' TEBf.frd Flnrnci.l P.ymd P.yrbLir Proil or Los!' Oebt" Hcld for Hedgingr/ Asd3r' LllbilttL!" I Whol€sl€ Fudlng dudng rhhin om . 0.00 0,00 0.00 0.00 0.00 0.00 0.00 l. hilapphe NG;LGUS;GOCCS; BSP; eBeigN, cenhl banks, pSEs )f br€bn @unfies: MD& 0.00 I entilbs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.tx) L &cxd by Lawl t as* OR furdiN orevijed t 0.00 0.00 eckd by L6wl 2 gss winh 15% 0.00 l. tsackd by rcFHQLA AND furding pmvil€d by th€ Phalippine NG or 0.00 )y LGU3 thet are a$ign€d with 20% credit rbk woight or lower, or bv 0.00 Beck€d by LsEl 2 as* with 50% heircul hEdbN i. ,Jl other maturing s*ur€d funding mt sp€cilid in the rbw rolatd €lsofu o.00 0.00 m Cd Ouffid, R.Ftud ln (Xh.r Sch.duL. 0.00 o.m 0.m tlss6 0.00 0.00 0.00 0.00 0.00 0.00 0.m 0.o0 0.00 0.00 1/ R@ncil€ with FRP Schdds 39 aM 3OA maturiN wfiin on€ monih 2/ Include insllmetr epdd to bc Fi, wiihin the 3Gday LCR Frird b lbbilitbe wfi rsir@l maturiiis b€Fnd one month 3/ StDuld bo repned under Pad llFcash oulflow, ltem D.1 (cofrtul detutiE €sh outnoE) plus th€ mbEl amount of d€.iEtr du6 ffih se 3Hay LcR Frbd. if anv Pag. 12 of 13

PartlV-A&B.Lendlng {Name ofBenUQB) Nemeot BanUQB As of (liodHQ6ns-End) FlErci.lA.s FireblA..6 D..lgmbd d Fdr AEilrbbfGs.le Unqdd D.tt R€h[bL. Und.r A6dnf D.acddd De im Cnh.r X.ld fd Tndlng V.ln tlrqrgNl Flumld&* lt l4lolfirity S*0ltL. l-oB.trd Radrarra& lr.rftr.tid ulth Srh.Cffid Ac.mdhd Bankrt' (qdrd.€.qdry Proft d Ls (dclrdng.q0ity FlmmLlAeb, Ch..ilLd s R@hrbbr' Agffi.nd Poltin F.l. vdn hro6fril odFF" Tdl Hetd fc Hrdging" Roinblr" euritlorl' (ucludng cquaty ewtdGlrt Lorrt Fimrcid At*trfl witioclr/ .nd Effdlng LaNtng |mdEffiln or mffi 0.00 0,00 o.00 0.00 0.m 0.00 0.00 0.00 L€El2eSffi50% hdd WEn bdtE bM 0.m by alldh6f @lebEl 0.00 ohr @bbDb Lo6, R6Mk.d o.m Odrr CDdt Frcllhls. ffiirc slihlh m o.m 0.m 0.00 0.00 o.o 0.00 0.00 o.m ij LGUS: GQCG;$EEqB, PSES of foEiqn @WE. MDBS NoFliEtrbl '. Banls; fimncbl @rpoEb; tnat and othcr fidwia.i€s; o.m bemficbri*; 8Sp: ard 6dBl benks of foeion 6utu 0.00 ffiCahl 0.00 0.m 0.m 0.00 0.00 0.00 0,00 EF$s bb ff ohri dl iditdim fo. pggd 4d an dEm cGdt lE d bGiE facitv 3. Cesh beb|E arisilg fEm Itb pDvisbn of bmkding $fri(s end simihr o.w Cash bah|rc Blqsed fM s€gr€g€tod a@ft bH fs tho pDt 0.00 as@H wih DFHQLAS ' s tmt Sd wf,hin ad matuE bFrd th€ LCR Frbd 0.m 0.00 0.00 0.00 0.00 0.m 0.m a. 0.00 b. ftlbbBl 0.m 0.00 |frr e$ id* rct €Dtu€d h abo€ irfbw HCX-A o.m 0.m o.m 0.m o.m 0.m 'bae spocify: 2l 3l 0.00 0.00 0,00 0.m 0.00 o.m 0.00 0.m li R@rcib wilh FRP ScHubs 39 and 3gA matuirg wfiin oE modh 2/ lt|dlde iMirEc e)eed€d to b6 |@iFd #in the 30day LCR F.bd fM asb with Giicl matuiitbs byord m mffi tr Shori b€ Epned ds Pad lV-Cs* Infbw, K€m C.7 (N€t dsiEtic €$ irfbws) d6 th6 mbEt amod ot ddiEtiE dE wfih h 3Hay LCR p€rbd, if any. Pat. 13 of13

Attachment 4 Appendix TaclQ-44d (Appendix to Subsec. X176.3/4176Q.3) SWORN CERTIFICATION OF COMPTIANCE WITH THE MINIMUM LIQUIDIW RATIO REQUIREMENT <Name of Bank or Quasi-Bank> CERTIFICATION Pursuant to Subsection XL76.3/4L76Q.3 of the Manual of Regulations for Banks/Non-Bank Financial Institutions ,1f we hereby certify that - l-l fn" Bank/QB has fully complied with the twenty percent (2O%) Minimum Liquidity Ratio (MLR) Requirement on all banking/business days of the month/quarter ended <Year>. [-l rf,e Bank/QB incurred shortfalls on the following days of the month/quarter ended <Year>: l/We further certify to the best of my/our knowledge that the above statement is true and correct. (Signature over Printed Name of President, or Executive Vice President and Co m p ia nce Officer/Ch ief Accou nta nt/Com ptrol ler) I SUBSCRIBED AND SWORN TO before me this day of 2O_, at, Philippines affiant/s exhibiting their government-issued identification cards as follows: NAME GOVERNMENT. DATE OF ISSUE PLACE OF ISSUE ISSUED ID witness my hand and notarial seal on the date and place above-written. NOTARY PUBLIC Doc. No._; Page No. _; Book No. _; Series of 20

Attachment 5 (Page 1 of 2) DEADLINE : 15 banking days after end of reference month SUBMISSION : Original copy to the Supervisory Data Center FOR STAND-AIONE THRIFT, RURAT AND COOPERATIVE BANKS AND NON-BANK FINANCIAI INSTITUTIONS WITH QUASI-BANKING AUTHORIW (Name of Bank) (Code) (Address) COMPUTATION OF MINIMUM TIQUIDITY RATIO Solo Basis As of (Month-End) REPUBLIC OF THE PHILIPPINES) ) s.s. l/We solemnly swear that all matters set forth in this report and all its supporting schedules are true and correct, to the best of my/our knowledge and belief. (Signature over Printed Name of President, or Executive Vice President and Chief Accou nta nt/Comptrol ler) SUBSCRIBED AND SWORN TO BEFORE ME this day of 20 , affiant exhibiting to me their Government-issued identification cards as follows: Name Government-lssued lD Date of lssue Place of lssue Notary Public Until December 3L, 20 PTR No. Place: Doc. No. Page No. Book No. Series of

Attachment 5 (Page 2 of 2l Name of Bank/Quasi-Bank Minimum Liquidity Ratio As of (Month-End) (in PHP, Absolute Amounts) PART I. MINIMUM LIQUIDIW RATIO (MtR) Item Nature of ltem Reference Amount A. Stock of Liquid Assets Part ll, ltem B B. QualifyingLiabilities Part lll, ltem B C. MtR [A divided by Bl PART II. STOCK OF TIQUID ASSETS Item Nature of ltem Amount A. Stock of Liquid Assets (1) Cash on hand (2) Bank reserves in the BSP (3) Overnight and term deposits with the BSp (4) Reverse repos with the BSP (5) Debt securities representing claims on or guaranteed by - (a) The Philippine nationalgovernment (NG)and the Bangko Sentral (b) Sovereigns and central banks of foreign countries with external credit ratings of at least AA- or its equivalent (c) Multilateral organizations with external credit ratings of at least M- or its equivalent (5) Deposits in other banks [Sum of 6(a), 6(b) and 6(c)] (a) Deposits in universaland commercial banks Of which, P are deposited with related partiesl/ (b) Deposits in thrift banks Of which, P are deposited with related partiesl/ (c) Deposits in rural and cooperative banks Of which, P are deposited with related partiesl/ B. Total [Sum of A(1] to A(G)l PART III. QUATIFYING IIABIIITIES Item Nature of ltem Amount A. Qualifying tiabilities (1) Total On-Balance Sheet Liabilities Of which, P are deposits by related partiesl/ Of which, P are unsecured subordinated debt (2) lrrevocable obligations under off-balance sheet items: [sum of 2(a) to 2(e)] (a) Guarantees issued (b) Trade related guarantees (c) Letters of credit (d) Other committed credit lines (e) Others B. Total [Sum of A(1)and A(2)] L|Refertoitem..n'.ofSubsectionX141.1oftheMoRB/item''(sXa)e definition of related parties.

Attachment 6 APPENDIX 15a SWORN CERTIFICATION OF COMPTIANCE WITH THE FCDU/EFCDU COVER REQUTREMENT <Name of Bank> CERTIFICATION Pursuant to Section 73 of the Manual of Regulations on Foreign Exchange Transactions, as amended, we hereby certify that we have fully complied with the LOO% Asset Cover Requirement for FCDU/EFCDU Liabilities on all banking days of the quarter ended <Year>. We further certify to the best of our knowledge that the above statement is true and correct. President Compliance Officer Head ofTreasury Department TIN: TIN: TIN: SUBSCRIBED AND SWORN TO before me this day of 20_ dt, _ Philippines affiant/s exhibiting their government-issued identification cards as follows: NAME GOVERNMENT. DATE OF ISSUE PLACE OF ISSUE ISSUED ID witness my hand and notarial seal on the date and place above-written. NOTARY PUBLIC Doc. No. _; Page No. _; Book No. _; Series of 20