Amendments to Manual of Regulations for Non-Bank Financial Institutions (MORNBFI)
- Revision of Section 4115Q (previously 4116Q) to incorporate Basel III guidelines.
- Risk-based capital ratio for QBs similarly set at no less than 10%.
- Minimum CET1 and Tier 1 capital ratios maintained at 6.0% and 7.5%, respectively.
- Capital conservation buffer of 2.5% CET1 applies here as well.
- Basel III guidelines apply to UBs, KBs, their subsidiaries, and QBs.
Revisions to MORB and MORNBFI Appendices
- Amendments to Parts I (Risk-Based Capital Adequacy Ratio), II (Qualifying Capital), and VIII (Disclosure Requirements).
- Addition of Part III specifying guidelines on Capital Conservation Buffer.
- Renumbering of various parts to accommodate new sections, e.g., Credit risk weighted assets shifted from Part III to Part IV, etc.
- Detailed changes are outlined in Attachment A of the circular.
Treatment of Existing Capital Instruments
- Capital instruments as of 31 December 2010 not meeting revised framework eligibility are no longer recognized as capital upon the circular's effectivity.
- Capital instruments issued under BSP Circular Nos. 709, 716, and before Circular 768 remain recognized until 31 December 2015.
Applicability of Guidelines
- The guidelines apply to Universal Banks, Commercial Banks, including their subsidiaries and quasi-banks.
- Stand-alone thrift banks, rural banks, cooperative banks, and quasi-banks continue under the previous capital adequacy framework.
- However, capital instruments from these institutions must meet criteria enumerated in Annexes A to C and E to F of relevant Appendices to qualify.
Deletion of Outdated Appendices
- Appendix 63d of MORB and Appendix 46c of MORNBFI are repealed.
Supersession and Effectivity
- Any existing regulations inconsistent with the new provisions are superseded.
- The Circular takes effect on 01 January 2014, enforcing compliance going forward.