Amendments to the Guidelines on the Computation of Required Capital

December 28, 2018BSP CIRCULAR NO. 1027-18SUBJECT:Amendments to the Guidelines on the Computation of Required Capital The Monetary Board, in its Resolution No. 2093 dated 14 December 2018, approved the amendments to the guidelines on the computation of required capital as embodied under Sections X111 and X128, Subsections X105.4 and X105.6, and Appendix 63b of the Manual of Regulations for Banks (MORB) as well as Sections 4111Q and 4137Q, Appendix Q-46 and Subsection 4111T.1 of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).SECTION 1. The manner of computation of capital as defined in Section X111 of the MORB shall be applicable to all domestic banks and foreign bank subsidiaries. Section X111 of the MORB is hereby amended to read, as follows:Section X111 (2008-X106). Definition of Capital. — The following provisions shall govern the capital requirements for banks.The term capital shall be synonymous to unimpaired capital and surplus, combined capital accounts and net worth and shall refer to the total of the unimpaired paid-in capital, surplus, and undivided profits. For this purpose, the following items shall...