To achieve an effective risk management of FX positions

MAYN A FLIPHNAS

GIFFICE OITHIE GOVEFNOR

CHRACHAFLETTER

Scs cf 1999

TO: ALL COMM(EECIAIBANKSIN THRIFT BANKS WITH FCDU

LICENSES

to achieve an effective; risk man agement of FX p ositions, all commercial banks and thrift banks with FCDU iicenses are required to: Pursuant -c Moetary Board Re-ciutibn Mo. 1691 dated November 26, 1999 and

1. Use separate subsidia~y ledgers per curranicy for foreign currency transactions, which ledgers shall herxceferth be salled as "Malti-Currency Subsidiary Ledgers" (MCSL). The MCsL shall couair a the veuy lea st the information set forth in the attached

Schedule 13 (FX Possition Report) and Schedule 14 (Consolidated FX Assets and Liabilities). sample. Such Msi. shall henceforth be che sole source of figures reported in

Z. Reckoned frorn the dae of recer:pt of the Circular-Letter, submit for review, or DTBNBFI) the fcHowing: validation and acceptance by respec :ive operating Departments (i.e., DCB I, DCB II

a. MCSL fcrrnuat to be subinited w ithi. fifteen (15) banking days; and

b. Foreign currency nonitoring arrd. ac -ourting system for review, validation and acceptarce by the BSP within three (3) m nths.

FIDR IHE MONETARY BOARD

RAFALL B. BUENAVENTURA

Governor

Decermber, 1999

ITAGUYOD ANG PHILIPPENES 2OOO MAG IMPOK SA BANGKO

CONSOEIDATED MULTI CURENCY SUBSIDIARY LEDGER

tifor Comrerr: al Banks) Currency: JPY * Date:

FCY REGULAR Php FCY FCDU Php FCY TOTAL Php Foreigrt Currency Assets

Loans and Discounis-Ferei gn. Items in Litigation .L&D Foreign Bills Purchased lear Due from other banks.For cign E ark s. Past Due Loans and Discount Export Bills Purchascd Due from BSF Due from other banks-Cleering Ac:our Interbank Term Loaris Receiv abie Allewance for Probable Lesses Import Bills Import Bills Under Tr. Allowance for Probable Le sses Cust. Liab. For this Banks Accen anes. Due from other banks-Locrl Ban ks. Allow. For Prob.Louses Foreign Bills Purchased - Docun iont ar Past Due Bills Purchasci . CNT --4.

Trading Accomt Secrities-mi.. Avalable for Sals Seuitis-Irye sttForen Iny. in Bonds&Other Debit Inst.Foreig Forcign CurrencyChecks nd Oher ah iteans Restructured Loans Trading Account Securities-Inves rnsrt AccumlatedMarket Gin /(Losses.ASS Foeign Accum Bond Discount-IBODI Fc rcig Equity Investment in Allie Non: A lliec Uidett aking Duc From HO/Branches/A gencias As road Real andOther PropertiesOwned cr.icquire Foreign Currency Notes ard Cois cn I and Allowance for Probabls Iesses. General Loan Loss Provisi n Due from Head Office/BranchesA gers es Ahr rac Allow. For Prob. Losses. Returned Checks & Otter Cash Irems Accounts Receivable Gold Accum Prem Amortization- IBODI Forrig Allowance for Probahle Le sscs HfOt W4 :.2. xM X YSw ERHTA EWV-

Allow. for Prob. Losses. Accourt Res aivaole Accrued Interest Recxivab-c.

CCNSOLEATEE MULTI EUEENCY SUBSIDIARY LEDGER

Currency: JPY * Date: (For Comarorei n Benks) FCY REGULAR Php FCY FCDU Php FCY TOTAL "PhP

Allow. for Uncollec Prepzid Expenses Deffred Charges. o0 . M

Sundry Debits Inter-office Float Items (net debit talaoco) Miscellaneous Assets. Gross Foreign Eicharge rutets

Foregn Currency Liabilitius

Margin Deposits-Import LCs-Forcign Currene.. Accrued Interest & Oher Expenses Pavable-Foigo Deposit Liabilities Due To HO/Branches/Ager cics Arot Due toLocal Banks -FX C earins Bills Payable -.Bangko Sen ra. Bills Payable- Others. Bonds Payable -. Foreign Curretc... Cash Letters of Credit Accounts Payable-Foreign. Due to Local Banks. Payment Order Payable Bills Payable - Interbank Borrowi:gs. Unearned Jincome & Other Deferrad C cedits. Outstanding Acceptance s-Forsign Other Credits-Unclairned Ealanc Sundry Credits Inter-Office Float Items (net Credit bal ance's) Others

Gross Foreign Exchan ge L ibilities

Net Foreign Pxshange Asstts/(Liabilities) ..T,wb...tAA-..

Contingent Accounts

Spot FX Purchases. Spot Fx Sales Forward FX purchases Forward FX Sales. Net Contingent Assets)/ (Libilitie)

Grand Total: Net FX Positicr

All Currencies

CONSOUIDATED MULTI CURRENCY SHIBSIDIARY LEDGER

(Fo. Thrift tanks

Cutrency: JPY * Foreign Currens, Assets Date: ECY REGUILAR Php T FCDt PhY FCY TOTAL Php

..Ral and Othr operties n Aire Eorein SnoNotes rd cs on Hian Invin BondsO her Deht (t locig Due fromstherb nksClarinsAne Aliowanefo Phable O Foreign Currms Checkshd hr Cush te s Due from other benk -Lou I B3iont's. Due fromther bonkTorcig n's Due fromther benks-O Restrucuredpas-CD Accum Bond Dis out-IROHin Accum Pram Am ntizatisn 1301Foreig Allow. For Prob.. Loxses "Retumed Cheks & Otrer Prstuns Due from BS+ Interbank Term Ians lcenivatt Loang and Dusor nts-FDI Past Due Lots a-id (>iscouin Itens inLitigti-i&ICl General Loam Lo.s Pronvist n Allow. Fos Prah.. Iosses. Accounts Receiv-bi. Accrued Inteest. Pecivass Prepaid Expenser Othe. Allow. for Uricot ected int rest ot i oas Deffred harges. Allow. for Pro>b... Iter-office ioat Itens (r deti haiarce).. dry lebias -.osses- cou r: Recervabls S

Allowance fer Pnbable I.sss wSrors.KartnEacte ngeAsets ASS

R41 PC