April 8, 2020
BSP MEMORANDUM NO. M-2020-022
| TO | : | All BSP-Supervised Financial Institutions |
| SUBJECT | : | Reclassification of Debt Securities Measured at Fair Value to the Amortized Cost Category |
The Monetary Board, in its Resolution No. 511 dated 7 April 2020, approved the guidelines governing the reclassification of debt securities that are measured at fair value to the amortized cost category as part of the relief measures extended by the Bangko Sentral (BSP) in managing the financial impact of the corona virus disease 2019 (COVID-19) pandemic.
For prudential reporting purposes, a BSP-supervised financial institution (BSFI) shall be allowed to reclassify its investments in debt securities that are booked under a fair value category to the amortized cost category, except for debt securities that are part of assets under management of a trust entity.
The reclassification of debt securities shall be implemented in the following manner:
1. Debt securities recorded under the Other Financial Assets Mandatorily Measured at Fair Value through Profit or Loss and Financial Assets Measured at Fair Value through Other Comprehensive Income accounts may be reclassified to the...
