Regulatory Alerts2026-05-20
Framework for the Operationalization of the Countercyclical Capital Buffer and Adoption of the Positive Neutral Rate
The Bangko Sentral ng Pilipinas issued Circular No. 1235 to amend the Manual of Regulations for Banks by introducing a positive neutral Countercyclical Capital Buffer (CCyB) and adjusting minimum capital ratios. The Monetary Board sets the CCyB rate based on macro-financial conditions, with increases taking effect after twelve months and reductions effective immediately to manage systemic risk. The circular also establishes transitional provisions, including a phased reduction of the minimum Common Equity Tier 1 ratio and specific implementation timelines for different bank categories.
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