Regulatory Alerts2026-05-18
Circular No. 1233: Amendments to Regulations on Credit Risk Transfer Arrangements
Bangko Sentral ng Pilipinas issued Circular No. 1233 to amend Section 362 of the Manual of Regulations for Banks regarding credit risk transfer arrangements. The regulation establishes specific conditions for recognizing intrabank guarantees between head offices and branches in different jurisdictions as effective risk transfers, capping the covered amount at 100 percent of the bank's total loan portfolio. It further mandates that banks apply the risk weight of the guarantor or protection seller to the guaranteed or hedged portion of credit exposures in compliance with specified appendices.
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