Frequencies and deadlines of submission of the Computation of the Risk-Based Capital Adequacy Ratio Covering Credit Risk

CIRCULAR LETTER Series of 2001

Please be reminded that the adoption of the new risk-based capital adequacy framework and standards in the Philippines as provided in Circular No. 280 dated 29 March 2001 took effect on 1 July 2001. The new framework and standards replaced the net worth to risk assets ratio computation prescribed in Section 22 of the old General Banking Act (R.A. No. 337), Section 9 of the Thrift Banks Act of 1995 (R.A. No. 7906) and Section 31 of the Rural Banks Act of 1992 (R.A. No. 7353).

Accordingly, banks are enjoined to strictly observe the new capital adequacy guidelines prescribed in Circular No. 280, including the required submission of new reports, ““Computation of the Risk-Based Capital Adequacy Ratio Covering Credit Risks” to the appropriate supervising and examining department of the BSP, in accordance with the following frequencies and deadlines:

Type of Report

Frequency

Deadline

1. Solo basis (head office plus  branches)

Monthly

15 banking days after the end of reference month

2. Consolidated basis (parent bank plus subsidiary financial allied undertakings, but excluding insurance companies)

Quarterly

30 banking days after the end of reference quarter

For purposes of Section X162.1 of the Manual of Regulations for Banks, the abovementioned reports shall be classified as Category A-2 reports.

For information and guidance.

ALBERTO V. REYES Deputy Governor