BSP CIRCULAR NO. 465, S. 2005 AMENDMENTS TO THE MORB - SUBSEC X121.4.D ON CAPITAL OF FOREIGN BANK BRANCH AUTHORIZED TO OPERATE AS EXPANDED COMMERCIAL BANK AND SUBSEC. X121.5.D ON COMPOSITION OF CAPITAL ACCOUNTS, COMPLIANCE WITH CAPITAL RATIOS January 04, 2005

Pursuant to Monetary Board Resolution No. 1836 dated 16 December 2004, the Manual of Regulations for Banks (MORB) is hereby amended, as follows:

Section 1. Subsec. X121.4.d of the MORB onCapital of Foreign Bank Branch Authorized to Operate as Expanded Commercial Bankis hereby amended to read, as follows:

 

"The capital of a Philippine branch of a foreign bank which is authorized to operate as an EKB may consist of its permanently assigned capital plus theNet due toaccount:Provided, That at no time shall the aggregate of said accounts fall below the amount required for EKB authority under Subsecs. X106.1 and X106.2:Provided, further, That the amount of theNet due to  which may be added to permanently assigned capital shall not exceed the equivalent of three (3) times the amount of the permanently assigned capital.

 

TheNET DUE TOas described in the preceding paragraph shall be net of the items enumerated in Subsec. X121.5d."

Section 2. Subsec. X121.5.dComposition of capital accounts; compliance with capital ratiosof the MORB is hereby amended to read, as follows:

 

"The termNET DUE TOshall be net of: (1) unbooked valuation reserves and other capital adjustments as may be required by the BSP; (2) total outstanding unsecured credit accommodations, both direct and indirect, to DOSRI; and (3) deferred income tax."

This Circular shall take effect fifteen (15) days following its publication in the Official Gazette or in a newspaper of general circulation.

Adopted: 04 Jan. 2005

For the Monetary Board:

(Sgd.) RAFAEL B. BUENAVENTURA
Governor