Regulatory Alerts2026-06-19
M-2026-027: Regulatory Relief on Capital Relative to Valuation Losses on Peso Government Securities Measured at Fair Value Through Other Comprehensive Income
Bangko Sentral ng Pilipinas issued Memorandum No. M-2026-027 to grant regulatory relief by allowing banks and quasi-banks to exclude cumulative unrealized losses on Peso Government Securities measured at Fair Value Through Other Comprehensive Income from their Common Equity Tier 1 capital calculations. This measure, effective from April 1 to December 31, 2026, aims to mitigate the impact of market yield increases following the Middle East conflict on bank capital adequacy ratios. Institutions availing of this relief must notify their supervising departments and submit separate monthly reports reflecting both adjusted and unadjusted capital figures during the relief period.
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