October 11, 2011
BSP CIRCULAR NO. 738-11
| SUBJECT | : | Treatment of Securities Offered and Accepted in Tender Offers Pursuant to Liability Management Transactions of the Republic of the Philippines |
The Monetary Board, in its Resolution No. 1147 dated 29 July 2011, approved the following guidelines on the treatment of securities held by banks and other BSP-supervised financial institutions participating in tender offers pursuant to liability management transactions of the Republic of the Philippines for prudential reporting purposes.
Item "g" of Section 4 on Reclassification under Appendix 33 of the Manual of Regulations for Banks and Appendix Q-20 of the Manual of Regulations for Non-Bank Financial Institutions, is hereby amended to read as follows:
"g. The following securities booked under the HTM category, shall be exempted from the "tainting" provision for prudential reporting purposes which prohibits banks/FIs from using the HTM category and requires reclassification of the entire HTM portfolio to the Available-for-Sale category during the reporting year and for the succeeding two (2) full financial years whenever a bank/FI sells or reclassifies more than an insignificant amount of HTM...
