BSP CIRCULAR NO. 750

: The circular concerns the risk weighting of bank loans to the extent guaranteed by the Agricultural Guarantee Fund Pool (AGFP).
: The AGFP was created under Administrative Order No. 225-A dated May 26, 2008.
: These loans shall be assigned a risk weight of twenty percent (20%).
: A separate fund must be maintained to guarantee the loans originated by banks.
: The maximum allowable leveraging ratio is three (3), meaning the maximum amount of loans guaranteed can be thrice the amount of money in the fund.
: The fund must be invested in assets that are zero percent (0%) risk-weighted under the risk-based capital adequacy framework.
: The standard risk weight for these assets is 100%, except in specified cases like loans guaranteed by the AGFP.
: It applies to stand-alone thrift banks, rural banks, and cooperative banks.
: It took effect fifteen (15) calendar days following its publication in the Official Gazette or a newspaper of general circulation.
: Monetary Board resolution no. 276 dated February 16, 2012.