trending Market Intelligence /marketintelligence/en/news-insights/trending/cf3hrw0ieaxt0-uaslblua2 content esgSubNav
In This List

Philippine central bank relaxes measures for banks' bond issuance

Podcast

Street Talk | Episode 94: Recessionary fears in ’22 overblown, Fed could overtighten

Blog

Insight Weekly: Ukraine war impact on mining; US bank growth slowdown; cloud computing headwinds

Blog

Investment Banking Essentials Newsletter April Edition - 2022

Blog

Banking Essentials Newsletter April Edition - 2022


Philippine central bank relaxes measures for banks' bond issuance

The Philippine central bank will no longer require banks to seek central bank approval prior to the issuance of bonds and commercial papers as part of reforms to simplify and ease regulations on capital instruments.

The Bangko Sentral ng Pilipinas said Aug. 10 that the rules will apply to universal, commercial and quasi banks. These banks are required to submit a certification that the planned debt issue has undergone board approval and has been considered in the overall funding plan of the institution.

Banks will also need to submit a written undertaking to enroll or trade the bonds in accordance with the Securities and Exchange Commission's regulations to promote price discovery and transparency.

Further, banks and related parties are not allowed to act as market maker for its own listed bonds to prevent possible under price influence and backdoor pre-termination. Only a bank's trust department or trust entity may perform this role.

The central bank will continue to apply a 6% reserve requirement rate for bonds, which are considered as deposit substitute instruments.