602 THE JAPANESE YEN/PHILIPPINE PESO (JPY/PHP) SWAP FACILITY UNDER THE CROSS-BORDER LIQUIDITY ARRANGEMENT (CBLA) BETWEEN THE BANGKO SENTRAL AND THE BANK OF JAPAN (BOJ)
a. Has established the presence of an “emergency situation” as defined under this Section on Availment of the JPY/PHP Swap Facility;
b. Has JPY holdings which can be delivered and deposited to the Bangko Sentral’s account at the BOJ;
c. Has a CAMELS/ROCA composite rating of at least “3” and a Management/Risk Management component rating of at least “3” in the latest Report of Examination;
d. Has no unsafe or unsound banking cited in the latest Report of Examination; and
e. Has complied with the minimum capital requirement and risk-based CAR as provided under applicable and existing capital adequacy framework.
a. A certification under oath that the applicant bank meets the eligibility requirements and a declaration that there is an emergency situation in the bank as defined under this Section on Availment of the JPY/PHP Swap Facility.
b. A duly notarized secretary’s certificate together with a copy of the resolution of the board of directors of the bank (or its equivalent in the case of foreign bank branches):
(1) Authorizing the application for the JPY/PHP Swap Facility of the Bangko Sentral;
(2) Indicating the bank’s purpose for the availment and amount to be availed of under the JPY/PHP Swap Facility with supporting documents that indicate the existence of an emergency situation as defined under this Section Availment of the JPY/PHP Swap Facility and certifying that the PHP proceeds of the JPY/PHP Swap Facility shall be utilized by the bank to address PHP liquidity needs specified in its application as approved by the Bangko Sentral;
(3) Committing to deposit the JPY currencies to the account of the Bangko Sentral at the BOJ in exchange for the PHP liquidity that it will receive from the Bangko Sentral;
(4) Committing to comply with the guidelines set forth under this Section and other terms and conditions that may be imposed by the Bangko Sentral; and
(5) Designating authorized officers to sign and execute an agreement and other relevant documents in connection with the availment of the JPY/PHP Swap Facility.
a. Valuation of JPY. A haircut on the JPY shall be determined by the TD. The TD may make margin calls, as necessary, to cover changes in the value of the JPY against the PHP.
b. Pricing and terms. The price of the JPY/PHP swap transaction shall be determined by the TD, taking into account prevailing liquidity/market conditions. A maximum tenor of thirty (30) days shall apply. Trading time shall be set from 10:00 AM to 12:00 NN, then from 2:00 PM to 3:00 PM.
c. Pretermination. Bangko Sentral shall have the right to terminate any transaction in any of the following events:
(1) Funds from the transaction are found to have been used by the bank for purposes other than those they were originally approved for and specified in its application; or
(2) Any misrepresentation by the bank.
In addition, any outstanding transaction may be terminated at any time before maturity, subject to mutual agreement of both parties.
(Circular No. 919 dated 02 August 2016)