Amended Minimum Capital Requirements for Banks

Bank Category/Network Size

Universal Banks

Head Office only

Up to 10 branches 1/

11 to 100 branches1/

More than 100 branches1/

Commercial Banks

Head Office only

Up to 10 branches1/

11 to 100 branches1/

More than 100 branches1/

Existing Minimum
Capitalization

Revised Minimum
Capitalization

4.95 billion2/
P

3.00
6.00
15.00
20.00

billion
billion
billion
billion

2.00
4.00
10.00
15.00

billion
billion
billion
billion

2.40 billion2/

Thrift Banks

Head Office in:

Metro Manila

Cebu and Davao cities

Other Areas

1.00 billion2/
500 million2/
250 million2/

Head Office in the National Capital Region (NCR)

500 million
750 million

Head Office only

Up to 10 branches1/

11 to 50 branches1/

More than 50 branches1/

1.00 billion
2.00 billion

Head Office in All Other Areas Outside NCR

Head Office only

Up to 10 branches1/

11 to 50 branches1/

More than 50 branches1/

200
300
400
800

million
million
million
million

50
75
100
200

million
million
million
million

Rural and Cooperative Banks

Head Office in:

Metro Manila

Cebu and Davao cities

Other cities

1st to 4th class municipalities

5th to 6th class municipalities

100
50
25
10
5

million2/
million2/
million2/
million2/
million2/

Head Office in NCR

Head Office only

Up to 10 branches1/

11 to 50 branches1/

More than 50 branches1/

Head Office in All Other Areas Outside NCR (All

Cities up to 3rd Class Municipalities)

Head Office only

Up to 10 branches1/

11 to 50 branches1/

More than 50 branches1/

20
30
40
80

million
million
million
million

10
15
20
40

million
million
million
million

Head Office in All Other Areas Outside NCR (4th to

6th Class Municipalities)

Head Office only

Up to 10 branches1/

11 to 50 branches1/

More than 50 branches1/

1/ Inclusive of Head Office

2/ With no distinction for network
RISK BASED CAPITAL ADEQUACY RATIO

The risk based capital adequacy ratio (CAR) of universal banks (UBs) and
commercial banks (KBs) and their subsidiary banks and quasi-banks, expressed as a
percentage of qualifying capital to risk-weighted assets, shall not be less than
10%. 2. Qualifying capital is computed in accordance with the provisions of Part II.
Risk weighted assets is the sum of (1) credit-risk weighted assets (Parts III, IV, and
V), (2) market risk weighted assets (Parts IV and VI), and (3) operational risk
weighted assets (Part VII)

CEILINGS (CIRCULAR NO. 423 Series of 2004)

SECTION X330. Individual Ceiling. The total outstanding loans, other credit accommodations and
guarantees to each of the banks directors, officers, stockholders and their related interests shall be
limited to an amount equivalent to their respective unencumbered deposits and book value of
their paid-in capital contribution in the bank: Provided, however, that unsecured loans, other credit
accommodations and guarantees to each of the bank's directors, officers, stockholders and their related
interests shall not exceed thirty percent (30%) of their respective total loans, other credit
accommodations and guarantees.

Subsection X330.1 Exclusions from Individual Ceiling. The following loans, other credit
accommodations and guarantees shall be excluded in determining compliance with the individual ceiling.
Loans, other credit accommodations and guarantees secured by assets considered as non-risk by the
Monetary Board;
Assets considered as non-risk shall refer to the following:
1.

Cash;

2.

Debt securities issued by the BSP or the Philippine government;

3.

Deposits maintained in the lending bank and held in the Philippines;

4.

Debt securities issued by the U.S. government;

5. Debt securities issued by central governments, central banks of foreign countries and multilateral
financial institutions such as International Finance Corporation, Asian Development Bank and World Bank,
with the highest credit quality given by any two internationally accepted rating agencies;
6.

Such other assets considered as non-risk by the Monetary Board.

Loans, other credit accommodations and advances to officers in the form of fringe benefits granted in
accordance with existing regulations;
Loans, other credit accommodations and guarantees extended by a cooperative bank to its cooperative
shareholders;
SECTION X331. Aggregate Ceiling; Ceiling on Unsecured Loans, Other Credit Accommodations and
Guarantees. Except with the prior approval of the Monetary Board, the total outstanding loans, other credit
accommodations and guarantees to directors, officers, stockholders and their related interests shall not
exceed fifteen percent (15%) of the total loan portfolio of the bank or one hundred percent
(100%) of net worth whichever is lower: Provided, That in no case shall the total unsecured loans,
other credit accommodations and guarantees to said directors, officers, stockholders and their related
interests exceed thirty percent (30%) of the aggregate ceiling or the outstanding loans, other credit
accommodations and guarantees, whichever is lower. For the purpose of determining compliance with the
ceiling on unsecured loans, other credit accommodations and guarantees, banks shall be allowed to average
their ceiling on unsecured loans, other credit accommodations and guarantees every quarter.
In evaluating requests for extension of loans in excess of the aggregate ceiling, the BSP shall consider the
credit standing of the borrower, viability of the projects financed by such other credit accommodations in
relation to national objectives, collateral or security and other pertinent considerations.
SECTION X332. Exclusions from Aggregate Ceiling. The following loans, other credit accommodations
and guarantees shall be excluded in determining compliance with the aggregate ceiling:
Credit accommodations or portions thereof to the extent secured by assets considered as non-risk by the
Monetary Board;
Credit accommodations to a corporate stockholder which meets all the following conditions:

(1)

The corporation is a non-financial institution;

(2)

Its shares are listed and traded in the domestic stock exchanges;

(3) No person or group of persons related within the first degree of consanguinity or affinity holds/owns
more than twenty percent (20%) of the subscribed capital of the corporation.
Credit accommodations to government-owned or controlled corporations, in cases where a director, officer or
stockholder of the lending bank is a representative of the government in the borrowing corporation and does
not hold any proprietary interest in such corporation: Provided, That other rules on loans to DOSRI, such as
procedural and reportorial requirements under Sections X334 and X335 of this Circular are followed.
Exclusions from individual ceiling mentioned under items (b) and (c) of Subsection X330.1.
SECTION X333. Applicability to Branches and Subsidiaries of Foreign Banks. The individual and
aggregate ceilings as well as ceilings on unsecured credit accommodations prescribed herein shall also apply
to branches and subsidiaries of foreign banks in the Philippines.
Subsection X253.1 Required reserves against deposit and deposit substitute liabilities. The rates of required
reserves against deposit and deposit substitute liabilities in local currency of banks shall be as follows:

Account

UBs/KBs TBs

RBs/Coop
Banks

a. Demand Deposits

18

b. "NOW" Accounts

18

c. Savings Deposits

18

d. Time Deposits, Negotiable CTDs, Long-Term Non- Negotiable Tax

Exempt CTDs

18

e. Long-term Negotiable Certificate of Time Deposits (LTNCTDs)

f. Deposit substitutes (DS)

18

n.a

g. DS evidenced by repo agreements

n.a

h. IBCL (Sec. X343)

i. Bonds

n.a.

j. Mortgage/CHM Certificates

n.a.

n.a.

k. Peso deposits lodged under Due to foreign banks

18

n.a. n.a.

l. Peso deposits lodged under Due to Head

Office/Branches/Agencies Abroad (Philippine branch of a foreign
bank)

18

n.a. n.a.