Collection of the Annual Supervisory Fees (ASF) for the Year 2020

^0^^:,40 BANGKO SI=NTRAL NG PILIPINAS OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR MEMORANDUM No. M-2020- 074 To : ALL BANKS AND NON-BANKS WITH QUASI-BANKING FUNCTIONS (NBqBs) Subject : Collection of the Annual Supervisory Fees (ASF) for the Year 2020 Pursuant to Section 28 of the Republic Act (R. A. ) No. 7653, "The New Central Bank Act", as amended by R. A. No. 11,211', 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 2020 ASF. I. Computation of ASF for 2020 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 1128 of ,.% Thrift Banks 1128 of I% Rural/Cooperative Banks 1140 of I% NBQBs 1,128 of I% The AAA of the preceding Year is derived from the reports' 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. ' 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). For this Year, the MB has approved the deferment of assessment and collection of the ASF from within the month of May 2020 to a later date in 2020in view of the CDVid-19 pandemic. ' Financial Reporting Package (FRP) for banks, Consolidated Statement of Condition (CSOC) for NBQBs, and FRP for Trust Institution (FRPTl) of banks and NBQBs with trust functions

The collection of the 2020 ASF also takes into consideration events subsequent to the collection of the 201.9 ASF that would warrant a recoinputation, In such cases, the resulting over or under-payment of the 201.9 ASF shall be deducted/added to the 2020 ASF. Sample computations to illustrate potential scenarios are provided in Annex A. 2. Notification of Amount Due for 2020 and Mode of Payment The BSP Department of Supervisory Analytics (DSA) shall send a billing notice in September 2020 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'SINBQB'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 11.01 and Section 11.01-a of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFl), respectively, as amended, shall apply. 3. Exemption of 2020 Supervisory Fees From Taxes In accordance with the provision of R. A. No. 7653, as amended by R. A. No. 11,211, the Bangko Sentral shall be exempt from all national, provincial, municipal and city taxes on income derived from its governmental functions which include income from its activities or transactions in the exercise of its supervision over the operations of banks and its regulatory and examination powers over non-bank financial institutions performing quasi-banking functions, money service businesses, credit granting businesses and payment systems operators. Such exemption from taxes includes the collection of the ASF, and as such, taxes should not be withheld by entities considered as Large Taxpayers by the Bureau of Internal Revenue. 4. Exceptions Noted on Billing Notice of 2020 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 dso-srog@bsp. gov. ph using the following prescribed subject format - ASF 2020~Noted Exceptions<space><BSFI Name> ^!^, To : dsa-srog@bsp. gov. ph Subject : ASF 2020-Noted Exceptions <85FI 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. For strict compliance. Digitally signed by . Chuchi G. Fonacier Date; 2020.09.24 14:42:47 +08'00' CHUCHI G. FONACIER Deputy Governor 24 September 2020 *

Annex A Scenarios for coin utation of 2020 Annual Su erviso Fee ASF I. . Upgrade/Downgrade from one bank category to another Scenario A: RB A upgraded to TB A in !^929 Scenario B: TB B downgraded to RB B in !g^!! The 20L9 Average Assessable Assets (AAA) of RB A The 201.9 AAA of TB B will be in ultiplied by the will be in ultiplied by the TB rate. RB rate, Jan 201.9 Net Assessable Assets Jan Ian 242,849,367.14 Feb Feb 242,337,276.23 Mar 241. ,288, ,. 39.49 Mar 241,288,139.49 Apr Apr 240,666,674.79 May May 241,300,200.39 Iun 240,813,284.40 Iun 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, ,. 55,336.56 Sum of Net AssessableAssets 947,887,838.39 Sum of Net Assessable Assets 2,852,976,646.50 No. of reporting periods 4 No. of reporting periods 12 AverageAssessableAssets 236,971,959.60 AverageAssessable Assets 237,748,053.88 ASF rateforTB (1128 of I%) 0,000357, .43 ASF rate for RB (1140 of L%) 0.00025 ASFfor 2020 for TB A 84,632.88 ASF for 2020 for RB B 59,437,01. Page I. of 8

Scenario C: RB A upgraded to TB A in November 2029 TB A will be charged the applicable rate for the equivalent number of months as RBITB in 203.9. The difference in the amount collected as 2019 ASF will be added as an adjustment to the 2020 ASF. 2019 ASF Computation of 2020 ASF 1805edon 2028 NetAssessobleAssets) ASFoctuolcollection Recoinputotion 10,2019 2019 Net Assessable ASRB A ASRBA As TBA Total Assets Jan Feb Jan Mar 241,288,139.49 Feb Apr Mar 232,860,323 M@y Apr Iun 240 813,284.40 May Jul Iun 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 NetAssessobleAssets 947,887,838.39 947,887,838.39 947,887,838.39 Dec 267,741,427 AverogeAssessobleAssets 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 Proroted No. of months OS RBI1'8 10/12 2112 No. of reporting periods 5 ProratedAverageAssessobleAssets 197,476,633.00 39,495,326.60 Average Assessable Assets 247,314,089.14 Applic@bleASFRotes 0.000250 0,0002S 0,000357243 ASF rateforTB 0128 of I%) 0.000357143 ASFoctuolcollectionfor2019 59,242.99 ASF for 2020 88,326.50 2019 ASFRecomputotion (RBA + TBA) 49,369,16 14,105.48 63,474,64 Under/(Over) Collection of 2019 ASF* 4,231.65 Less: ASFoctuolcollectionfor2019 59242.99 Total ASFfor 2020 for TB A 92,558.14 Under/lover) Collection o120/9 ASF* 4,231.65

Scenario D: TB A downgraded to RB A in November 2019 RB A will be charged the applicable rate for the equivalent number of months as TB/RB in 2019. The difference for the amount collected as 2019 ASF will be added as an adjustment to the 2020 ASF. 20Z9ASF Computation of 2020 ASF 180sedon 2018 NetAssessobleAssets) ASFoctuolcollectionjbr Recoinputotion 2019 201.9 Net AssessableAssets As TBA As TBA As RBA Toldl 10n 242,849,367.24 ian 233,738,443 Feb 242,337,276.23 Feb 238,41.3,212 Mor 241,288,139.49 Mar 243,181,476 Apr 240,666,674.79 Apr 248,045,106 Moy 241,300,200.39 May 253,006,008 Iun 240,813,284.40 Iun 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 229,255,336.56 Dec 206,91.0,71.5 Sum of NetAssessobleAssets 2,852,976,646.50 2,852,976,646.50 2,852,976,646.50 AverogeAssessobleAssets 237,748,053.88 237,748,053.88 237,748,053.88 Sum of Net AssessableAssets 2,766,28L, 455.45 No. of reporting periods 12 10 2 No. of reporting periods it ProratedNo. of monthsos rel?B 101z2 2122 Average AssessableAssets 251,480,132.31 ProrotedAverogeAssessobleAssets 298,123,378.23 39,624,675.65 ASF rate for an 1,140 of I%) 000025 Applicable ASFRotes 0000357143 0000357143 0,0002s ASF for 2020 62,870.03 2019 ASFRecomputotion jinA + RBAj 70,758.38 9,906. Z 7 80,664.55 Under/(Over) Collection of 2019 ASF* 14,245. SLj Less: ASFoctuolcollection/br20Z9 84,9Z0.05 84,910. OS Total ASF for 2020 for RB A 58,624.53 Under/!OvenColtection of 2019 ASF* 14,245,511

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 2020 to form a new TB D. Since the consolidation was effected prior to the assessment for 2020 ASF, the 201.9 Net Assessable Assets of the two banks will be combined and the TB rate will be applied. 203.9 Net Assessable Assets RB C TB C TB D Jan 164,658,792.00 164,658,792.00 Feb 163.86L, 844.80 1.63,861,844.80 Mar 21,928,504.00 165,311,225.60 1.87,239,729,60 Apr 153,357,155.20 L53,357,155,20 May 154,301. ,374.40 i, s4,301,374.40 Iun 22,295,142.1.5 168,488,963.20 1.90,784.1.05.35 Jul 1.70,373,352,00 170,373,352.00 Aug 170,278,228.80 170,278,228.80 Sep 22,320,467.05 168,700,764.00 191,021,231.05 Oct 1.68,186,770,40 168,1.86,770.40 Nov 3.77,710,888.80 177,710,888.80 Dec 22,383,648.40 1.92,866,280.80 215,249,929.20 2,107,023,401.60 No. of reporting periods 12 Average Assessable Assets 175,585,283.47 ASF ratefor TB 11/28 of I%) 0,0003571.43 ASF for 2020 for TB D 62,709.05

Scenario F: RB X grid TB y consolidoted in November 2019 to form a new TB Z, TB Z will be charged the applicable rate as TB in 201.9. The difference in the amount collected as 2019 ASF will be added as an adjustment to the 2020 ASF. 2019ASF Computation of 2020 ASF 2019 Net AssessableAssets reused on 2028 NetAssessobleAssets) RBX TBY TB Z ASFoctuolcollectionfor2019 RBX TBY To toI Jan 174,949,966.50 174,949,966.50 10n 237,286,164,53 137,286,164.53 Feb 175,643, ,. 77.20 175,643, ,. 77.20 Feb 140,087,922.99 240,087,922.99 Mar 20,638,592.00 175,643,177.20 196,281,769.20 Mar Z9,036,380.13 142,946,860.29 161,983,240.32 Apr 162,941,977.40 162,941,977.40 Apr 145,864,143. OS 145,864,143.05 May 163,945,21.0.30 163,945,21.0.30 MDy 248,840,962,30 248,840,962.30 Iun 20,983,663.20 179,019,523.40 200,003,186.60 Iun Z9,424,877.68 152,878,532.96 171,303,410.64 Jul 181,021,686.50 181,02L, 686.50 Jul 154,978,094.86 154,978,094.86 Aug 180,920,61.8.10 180,920,61.8. ,. 0 Aug 258,140,913. Z2 J58,140,913. Z2 Sep 21,007,498.40 179,244,561.75 200,252,060.15 Sep Z9,822,303.76 261,368,278.69 181,189,582.45 Oct 178,698,443.55 178,698,443.55 Oct Z64,662,508.87 Z64,662,508.87 Nov 199,705,941.95 Nov 268,021,947.83 168,021,947.83 Dec 23.9,676,536. ,. 5 Dec 20,225,820.16 171,450,967.17 Z9i, 676,787.33 Sum of Nat AssessableAssels 2,234,040,573.60 Sum QINetAssessobleAssets 78,508,381.73 Z, 845,526,296.56 2,924,034,678.29 No. of reporting periods 12 AverogeAssessobleAssets 29,627,095.43 Z53,793,858.05 160,336,223.19 AverageAssessableAssets 1.86, ,. 70,047.80 No. of reporting periods 4 12 z2 ASFratelor TB 11/28 of I%I 0,000357143 ApplicobleASFRotes 0000250 0000357J43 0,000357Z43 ASFfor 2020 for TB Z 66,489.33 ASFoctuolcollection/br20Z9 57,262.96 Under/(OvenCollectlon of 2019 ASF* 12,570,211 2019ASFRecomputotionIR8A +TBA! 4,906.77 54,926.40 59,833. Z 7 Total ASF for 2020 for TB Z 63,919.12 Unded(OvenCollection o120z9ASF* f2,570.21)

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 und TB E merged in January 2020 with TB E OS the surviving entity The quarterly 201.9 Net Assessable Assets of RB D will be combined with the monthly 201.9 Net Asses able Assets of TB E and the TB rate will be applied. 201.9 Net AssessableAssets RB D TB E Total ian 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. Do 178,197,690,00 Apr 143,772,333.00 ,. 43,772,333.00 May 144,657,538.50 144,657,538.50 Iun 23,606,621. .1.0 1.57,958,403. Do 181,565,024,1.0 Jul 159,725,017.50 1.59,725,01.7.50 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 1.87,31.8, DJ. 5.53 211,018,349,13 Sum of Net AssessableAssets 1,999,467,994.9, . No. of reporting periods 1.2 Average Assessable Assets 166,622,332.91 ASF rateforTB (1128 of I%) 0.000357i. 43 ASF for 2020 for TB E 59,508.00

Scenario H: Re A grid TB A merged in December 2029 with TB A OS the surviving entity TB A will be charged the applicable rate as TB in 2019 The difference for the amount collectsd as 203.9 ASF will be added as an adjustment to the 2020 ASF. 2019ASF Computation of 2020 ASF 2019 NetAssessab!eAssets (Based on 2018 NetAssessobleAssetsj RBA TB A Total ASFColiectedjbr2019 Recoinputotion RBA in A TBA Ian 549,972,808 549,972,808 Jan 242,849,367. J4 242,849,367.14 Feb 577,471,448 577.47L, 448 Feb 242,337,276.23 242,337,276.23 Mar 252,070,870.22 606,345,021 858,415,891 MDF 241,288,139.49 24J, 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 Moy 241,300,200.39 241,300,200.39 Iun 277,277,957.24 701,920,154 979,198,112 Iun 240,813,284.40 240,813,284.40 481,626,568.80 Jul 737,016,162 737,016,162 Jul 238,639,584.15 238,639,584.25 Aug 773,866,970 773,866,970 Aug 236,534,588.97 236,534,588.97 Sep 305,005,752.96 8L2,560.3J. 9 I, 117,566,072 Sep 236,631,077.94 236,631,077.94 473,262, J55.88 Oct 853488,335 853,188,335 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 AssessableAssets 834,354,580.41 8,753,986,763.66 9,588,341.344.08 Sum @1Net AssessobJeAssets 947,887,838.39 2,852,976,646.50 3,800,864,484.89 No. of reporting periods 12 AverageAssessobJeAssets 236,971,959.60 237,748,053.88 316,738,707.07 AverageAss"sableAssets 799,028,445.34 No. of reporting periods 4 12 12 ASF rateforTBIL/40 of L%) 0000357143 App"cableASFRotes 000025 0000357143 0000357143 ASF for 2020 285,367.42 2019ASF 59,242.99 84,9z0.05 Under/!OvenCollection of 20L9 ASF' 131,032,081 Recoinputed2019ASFjTBA) J13, ,?0.97 Total ASFfor 2020 for TBA 254,335.34 Less: ASFcollectedjor2019 me A + TBAl 144,153.04 Under/(OvenCollection o120Z9ASF' 131,032.08)

4. Amendment of reports used in the computation of ASF Scenario I: RB E amended its Dec 2018 FRP in January 2020 The 2019 ASF will be recoinputed and the resulting under/(over) collection will be added toldeducted from the 2020 ASF. Computation of 2020 ASF Recoinputation of 2019 ASF 2019 Net Assessable 2018 NetAssessableAsssets Assets RB E RB E Originol Amended Jan ion Feb Feb Mar 19,864,644.80 Mor 18,522,548.05 18,522,548.05 Apr Apr May Moy Iun 20,196,775.83 Iun 19,605,793.15 19,605,793.15 Jul Jul Aug Aug Sep 20,219,717.21 Sep 20 644771.95 20,644,771.95 Oct Oct Nov Nov Dec 20,276,952.08 Dec 21,484,407.05 21,883,458.27 Sum of NetAssessobleAssets 80,257,520.20 80 656,571.42 Sum of Net Assessable Assets 80,558,089.92 No. offeporting periods 4 4 No. of reporting periods 4 AverogeAssessobleAssets 20,064,380,05 20,164,142.85 Average Assessable Assets 20,139,522.48 ASFrotejorRBjZ/40 of I%! 000025 ASF rate for RB11/40 of I%) 0,00025 RecoinputedASFjbr2019 5,041.04 ASF for 2020 5,034.88 Less: ASFcollectedfor2019 5,016.10 Under/tOrer) Collection of 2019 ASF* 24.94 Under/(Oven Collection o120Z 9 ASF* 24.94 Total ASF for 2020 for RB E 5,059.82