125 BASEL III RISK-BASED CAPITAL
a. A capital conservation buffer (CCB) of two and a half percent (2.5%); and
b. Countercyclical capital buffer (CCyB) of zero percent (0%) subject to upward adjustment to a rate determined by the Monetary Board when systematic conditions warrant but not to exceed two and a half percent (2.5%). Any increase in the CCyB rate shall be effective twelve (12) months after its announcement. Decreases shall be effective immediately.
a. Credit-linked notes in Sec. 624-A.
b. Structured products in Sec. 625-A (Capital treatment of banks’ exposures to structured products).
c. EFCDU investments in Sec. 626-A (Capital treatment of structured products).
d. Investment in securities overlying securitization structures in Sec. 627-A (Capital treatment of investments in securities overlying securitization structures).
a. For non-reporting of CAR breaches. It is the responsibility of the bank CEO to cause the immediate reporting of CAR breaches both to its Board and to the Bangko Sentral. It is likewise the CEO’s responsibility to ensure the accuracy of CAR calculations and the integrity of the associated monitoring and reporting system. Any willful violation of the above will be considered as a serious offense for purposes of determining the appropriate monetary penalty that will be imposed on the CEO. In addition, the CEO shall be subject to the following non-monetary sanctions:
(1) First offense – warning;
(2) Second offense – reprimand;
(3) Third offense – one (1) month suspension without pay; and
(4) Further offense – disqualification.
b. For non-compliance with required disclosures. Willful non-disclosure or erroneous disclosure of any item required to be disclosed under this framework in the Published Statement of Condition shall be considered as a serious offense for purposes of determining the appropriate penalty that will be imposed on the bank. In addition, the CEO and the board shall be subject to the following non-monetary sanctions:
(1) First offense – warning on CEO and the Board;
(2) Second offense – reprimand on CEO and the Board;
(3) Third offense – one (1) month suspension of CEO without pay; and
(4) Further offense – possible disqualification of the CEO and/or the Board.