The Bangko Sentral ng Pilipinas has issued reporting guidelines for banks and quasi-banks that plan to avail themselves of temporary capital relief on valuation losses from peso government securities, according to a report by Philstar Biz.
The move comes amid market volatility triggered by the Middle East conflict, which has affected the valuation of government securities. The temporary relief allows banks to exclude certain unrealized losses from their capital adequacy calculations, subject to strict reporting requirements.
The guidelines aim to ensure that while banks get temporary relief, they remain transparent and maintain prudent risk management. The BSP has emphasized that the relief is temporary and subject to periodic review.