June 06, 2018

BSP published (via Circular No. 1007) the implementing guidelines for net stable funding ratio (NSFR), including the NSFR reporting template, as part of the Basel III framework liquidity standards. The NSFR framework shall apply to all universal and commercial banks and their subsidiary banks and quasi-banks on both solo and consolidated—that is, parent bank plus subsidiary financial allied undertakings, but excluding insurance companies—bases. The circular shall take effect 15 calendar days after publication in the Official Gazette or in a newspaper of general circulation. The NSFR implementation will start from January 01, 2019 onward.

A covered bank/quasi-bank shall maintain an NSFR of at least 100% at all times. NSFR shall be computed and reported in a single currency, that is, in peso equivalent terms of all currencies. Notwithstanding this requirement, a covered bank/quasi-bank shall internally measure and monitor NSFR per significant currency. A currency is considered significant if the aggregate liabilities denominated in that currency amount to 5% or more of the covered banks/quasi-banks' total liabilities, as of the NSFR measurement date.

Covered banks/QBs shall comply with the minimum NSFR on a daily basis. The covered banks/quasi-banks shall submit a report of the NSFR to BSP, through the Supervisory Data Center (SDC), on both solo and consolidated bases. The covered banks/quasi-banks shall submit their NSFR report 15 banking or business days from the measurement date on solo bases and 30 banking or business days from the measurement date on consolidated bases. Implementation of the minimum NSFR shall be phased in and the covered banks/quasi-banks shall undergo an observation period, from July 01, 2018 to December 31, 2018, before the minimum NSFR becomes a requirement. The minimum NSFR will be implemented from January 01, 2019.

 

Related Link: Circular No. 1007

Effective Date: January 01, 2019 (implementation date)

Keywords: Asia Pacific, Philippines, Banking, NSFR, Reporting, Circular 1007, Basel III, BSP