TABLE OF CONTENTS

POWERS OF THE BANGKO SENTRAL

Section	001		Examination by the Bangko Sentral
Section	002		Supervisory Enforcement Policy
Section	003		Prompt Corrective Actions Framework

PART ONE – ORGANIZATION, MANAGEMENT AND ADMINISTRATION

			A. CLASSIFICATIONS, POWERS AND OPERATIONS OF BANKS
Section	101		Classification, Powers and Scope of Authorities of Banks
Section	101-B		Authority of Thrift Banks to Issue Foreign Letters of Credit and Pay/Accept/Negotiate Import/Export Drafts/Bills of Exchange
Section	102		Basic Guidelines in Establishing Domestic Banks
Section	103		Liberalized Entry and Scope of Operations of Foreign Banks
Section	104		Mergers and Acquisitions
Section	105		Establishment/Relocation/Voluntary Closure/Sale of Branches/ Branch-Lite Units
Section	106		Establishment of Sub-Branches of Foreign Bank Branches
Section	107		Mobile Foreign Exchange Booths
Section	108		Banking Days and Hours
Section	109		Bank Premises and Other Fixed Assets
			B. SPECIAL AUTHORITIES
Section	111		Licensing
Section	112		Management Contracts and Outsourcing
Section	113		Cross-selling
Section	113-B		Marketing, Sale and Servicing of Microinsurance Products by Thrift Banks
Section	113-C		Marketing, Sale and Servicing of Microinsurance Products by Rural and Cooperative Bank
Section	114		Prohibition on the Sale of Foreign-Based Mutual Funds by Banks
			C. CAPITALIZATION AND RISK-BASED CAPITAL
Section	121		Minimum Required Capital
Section	122		Shares of Stock of Banks
Section	122-A		Shares of Stock of Universal/Commercial Banks
Section	122-B		Shares of Stock of Thrift Banks
Section	122-C		Shares of Stock of Rural Banks and Cooperative Banks
Section	123		Deposit for Stock Subscription
Section	124		Dividends
Section	124-C		Limitations/Amount available for dividends declared by rural banks and cooperative banks
Section	125		Basel III Risk Based Capital
Section	126		Capital Instruments Eligible as Risk-Based Capital
Section	127		Risk-Based Capital Adequacy Framework for Stand-Alone Thrift Banks, Rural Banks and Cooperative Banks
Section	128		Domestic Systemically Important Banks (DSIBs)
Section	129		Basel III Leverage Ratio Framework
Section	130		Internal Capital Adequacy Assessment Process and Supervisory Review Process
			D. CORPORATE GOVERNANCE
Section	131		Policy Statement and Definition of Terms
Section	132		Board of Directors
Section	133		Board-level committees
Section	134		Officers
Section	135		Remuneration and Other Incentives
Section	136		Related Party Transactions
Section	137		Confirmation of the Election/Appointment of Directors/ Officers; Bio-data of Directors and Officers; Interlocking Directorships and/or Officerships; Rules of Procedures on Administrative Cases involving Directors and Officers of BSFIs
Section	138		Disqualification and Watchlisting of Directors and Officers
			E. RISK MANAGEMENT
Section	141		Supervision by Risk
Section	142		Risk Governance Framework
Section	143		Credit Risk Management
Section	144		Market Risk Management
Section	145		Liquidity Risk Management
Section	145-A		Liquidity Coverage Ratio (LCR)
Section	146		Operational Risk Management
Section	147		Bank Protection
Section	148		Information Technology Risk Management
Section	149		Business Continuity Management
Section	150		Social Media Risk Management
Section	151		Guidelines on the Conduct of Stress Testing Exercises
			F. COMPLIANCE, INTERNAL CONTROL, AND AUDIT
Section	161		Compliance Framework
Section	162		Internal Control Framework
Section	163		Internal Audit Function
Section	164		Selection, Appointment, Reporting Requirements and Delisting of External Auditors and/or Auditing Firm; Sanctions; Effectivity
			G. REPORTING GOVERNANCE
Section	171		Reporting Governance Framework
Section	172		Financial Records
Section	173		Reports
Section	174		Audited Financial Statements
Section	175		Public Disclosures
			H. UNSAFE OR UNSOUND BANKING
Section	181		Conducting Business in an Unsafe or Unsound Banking
			I. SURRENDER OF BANKING LICENSE, LIQUIDATION, AND RECEIVERSHIP
Section	191		Voluntary Liquidation
Section	192		Insolvency or Receivership of Banks

PART TWO – DEPOSITS, BORROWINGS AND OTHER LIABILITIES

			A. DEMAND DEPOSITS
Section	201		Authority to Accept or Create Demand Deposits
Section	202		Returned Checks
Section	203		Temporary Overdrawings; Drawings Against Uncollected Deposits
Section	204		Demand Deposits of Bank Officers and Employees
			B. SAVING DEPOSITS
Section	211		Saving Deposit Transactions
Section	212		Peso Savings Deposit Accounts of Embassy Officials
			C. TIME DEPOSITS
Section	216		Term of Time Deposits
Section	217		Certificates of Time Deposit
Section	218		Special Time Deposits
			D. NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNTS
Section	221		Authority to Accept Negotiable Order of Withdrawal Accounts
Section	222		Minimum Features of Negotiable Order of Withdrawal Accounts
Section	223		Rules on Servicing Negotiable Order of Withdrawal Accounts
			E. GOVERNMENT DEPOSIT
Section	231		Acceptance of Government Deposits
			F. DEPOSIT SUBSTITUTE OPERATIONS (QUASI-BANKING FUNCTIONS)
Section	241		Scope of Quasi-Banking Functions
Section	242		Deposit Substitute Instruments
Section	243		Minimum Trading Lot and Minimum Term of Deposit Substitute
Section	244		Money Market Placements of Rural Banks
Section	245		Without Recourse Transactions
Section	246		Issuance of Bonds and Commercial Papers
			G. RESERVE AGAINST DEPOSIT AND DEPOSIT SUBTITUTES LIABILITIES
Section	251		Accounts Subject To Reserve; Amounts Required
Section	252		Composition of Reserve
Section	253		Exemptions from Reserve Requirements
Section	254		Computation of Reserve Position
Section	255		Reserve Deficiencies; Sanctions
Section	256		Report on Compliance
			H. INTEREST AND FEES
Section	261		Interest on Deposits/Deposit Substitutes
Section	262		Disclosure of Effective Rates of Interest
Section	263		Fees on Retail Bank Products/Services
			I. DEPOSIT OPERATIONS
Section	271		Booking of Deposits and Withdrawals
Section	272		Unclaimed Balances
Section	273		Rental Deposits of Lessees
Section	274		Servicing Deposits Outside Bank Premises
Section	275		Cash Pick-up/Cash Delivery Services; Cash Agents
Section	276		Miscellaneous Rules on Deposits
			J. BORROWINGS FROM THE BANGKO SENTRAL
Section	281		Rediscounting Line
Section	282		Rediscounting Availments
Section	283		Repurchase Agreements with the Bangko Sentral
Section	284		Bangko Sentral Liquidity WindoW
Section	285		Emergency Loans or Advances to Banking Institutions
Section	286		Facility to Committed Credit Line Issuers
Section	287-B/C		Countryside Financial Institutions Enhancement Program for Thrift Banks, Rural and Cooperative Banks
Section	288		Recording and Reporting of Borrowings
Section	289		Rediscounting Window
Section	290		Enhanced Intraday Liquidity Facility
			K. OTHER BORROWINGS OF BANKS
Section	291		Borrowings from the Government
Section	292		Borrowings from Trust Departments or Investment Houses
Section	293-B		Mortgage/CHM Certificates of Thrift Banks
Section	294-C		Borrowings of Rural Banks/Cooperative Banks
			L. OTHER LIABILITIES
Section	295		Collection of Customs Duties/Taxes/Levies and Other Revenues, and Acceptance, Encashment or Negotiation of Checks Drawn in Favor of Commissioner
Section	296		Collection Agents of the Social Security System
Section	297		Collection Agents of PhilHealth
Section	298		Disclosure of Remittance Charges and Other Relevant Information
Section	299		Segregation of Customer Funds and Securities Received by Banks in the Performance of their Securities Brokering Functions

PART THREE – LOANS, INVESTMENTS AND SPECIAL CREDITS

			A. GENERAL PROVISIONS ON LENDING OPERATIONS
Section	301		Grant of Loans and Other Credit Accommodations
Section	302		Amortization on Loans and Other Credit Accommodations
Section	303		Secured Loans and Other Credit Accommodations
Section	304		Past Due Accounts and Non-Performing Loans
Section	305		Interest and Other Charges
Section	306		“Truth in Lending Act” Disclosure Requirement
			B. TYPES OF LOANS AND CREDITS
Section	311		Salary-Based General-Purpose Consumption Loans
Section	312		Credit Card Operations
Section	313		Agricultural Loans
Section	314		Microfinance Loans
Section	315		Interbank Loans
Section	316		Bank Loans to Government
Section	317		Other Loans and Rediscounting to Thrift/Rural/Cooperative Banks
Section	318		Standby Letters of Credit
Section	319		Committed Credit Line for Commercial Paper Issues
			C. MANDATORY/SPECIALIZED CREDITS
Section	331		Agriculture and Agrarian Reform Credit
Section	332		Mandatory Allocation of Credit Resources to Micro, Small and Medium Enterprises
Section	333		Loans to Barangay Micro Business Enterprises
			D. LOANS AND OTHER CREDIT ACCOMMODATIONS TO DIRECTORS, OFFICERS, STOCKHOLDERS AND THEIR RELATED INTERESTS/ SUBSIDIARIES/AFFILIATES
Section	341		Policy Statement
Section	342		Transactions, Covered and Not Covered
Section	343		Direct or Indirect Borrowings
Section	344		Individual Ceilings
Section	345		Aggregate Ceiling
Section	346		Procedural and Reportorial Requirements
Section	347		Waiver of Secrecy of Deposit
Section	348		Supervisory Enforcement Actions
Section	349		Applicability to Branches and Subsidiaries of Foreign Banks
Section	350		Applicability to Government Borrowings in Government-Owned or Controlled Banks
			E. CREDIT CONCENTRATION AND PRUDENTIAL LIMITS
Section	361		Large exposures and credit risk concentrations
Section	362		Credit Exposure Limits to a Single Borrower
Section	363-A		Limits on Real Estate Exposures and Other Real Estate Property of UBs/KBs
Section	363-B		Limits on Real Estate Exposures and Other Real Estate Property of TBs
Section	364		Expanded Report on Real Estate Exposure of Banks
			F. EQUITY INVESTMENTS
Section	371		Scope of Authority
Section	372		Financial Allied Undertakings
Section	373		Limits on Investment in the Equities of Financial Allied Undertakings
Section	374		Investments in Venture Capital Corporations
Section	375		Non-Financial Allied Undertakings
Section	376-A		Investments in Non-Allied or Non-Related Undertakings
Section	377		Investments in Subsidiaries and Affiliates Abroad
Section	378		Prudential Limits and Restrictions on Equity Investments
Section	379		Sanctions
			G. SUNDRY PROVISIONS
Section	381		Purchase of Receivables and Other Obligations
Section	382		Acquired Assets in Settlement of Loans
Section	383		Loans-to-Deposits Ratio
Section	384		Credit Policies of Government-Owned Corporations
Section	385		Regulatory Relief for Banks Under Rehabilitation Program Approved by the Bangko Sentral

PART FOUR – TRUST, OTHER FIDUCIARY BUSINESS AND INVESTMENT MANAGEMENT ACTIVITIES

			A. STATEMENT OF PRINCIPLES AND SCOPE
Section	401		Statement of Principles
Section	402		Scope of Regulations
Section	403		Definitions
			B. TRUST AND OTHER FIDUCIARY BUSINESS
Section	411		Authority to Perform Trust and Other Fiduciary Business
Section	411-B/C		Grant of Authority to Engage in Limited Trust Business to Thrift Banks/Rural Banks
Section	412		Organization and Management
Section	413		Trust and Other Fiduciary Business
Section	414		Unit Investment Trust Funds
Section	415		Investment Management Activities
Section	416		Foreign Currency Deposit Unit/Expanded Foreign Currency Deposit Unit Trust Accounts; Other Fiduciary or Investment Management Accounts
Section	417		Security for the Faithful Performance of Trust and Other Fiduciary Business
Section	418		Reserves Against Peso-Denominated Trust and Other Fiduciary Accounts (TOFA) – Others
Section	419		Required Retained Earnings Reserve
Section	420		Unsafe or Unsound Manner
			C. INVESTMENT MANAGEMENT ACTIVITIES
Section	421		Authority to Perform Investment Management
Section	422		Organization and Management
Section	423		Conduct of Investment Management Activities
Section	424		Security for the Faithful Performance of Investment Management Activities
Section	425		Required Retained Earnings Reserved
Section	426		Unsound Manner
			D. GENERAL PROVISIONS
Section	431		Securities Custodianship and Securities Registry Operations
Section	432		Custody of Assets
Section	433		Fees and Commissions
Section	434		Taxes
Section	435		Books, Records and Reports Required
Section	436		Audits
Section	437		Authority Resulting from Merger or Consolidation
Section	438		Non-Trust, Non-Fiduciary and/or Non-Investment Management Activities
Section	439		Receivership
Section	440		Surrender of Trust or Investment Management License
			E. GENERAL PROVISION ON SANCTIONS
Section	499		Sanctions

PART FIVE – MANUAL OF REGULATIONS ON FOREIGN EXCHANGE TRANSACTIONS
(Please refer to separate Manual on Foreign Exchange Transactions)

PART SIX – TREASURY AND MONEY MARKET OPERATIONS

			A. MONETARY OPERATIONS OF THE BANGKO SENTRAL
Section	601		Monetary Operations
Section	602		The Japanese Yen/Philippine Peso (JPY/PHP) Swap Facility under the CrossBorder Liquidity Arrangement (CBLA) between the Bangko Sentral and the Bank of Japan (BOJ)
			B. TREASURY OPERATIONS OF BANKS
Section	611		Treasury Operations
Section	612		Sales and Marketing Guidelines for Financial Products
Section	613		Derivatives Activities
			C. FINANCIAL INSTRUMENTS
Section	621		Global Peso Notes
Section	622		Forward and Swap Transactions
Section	623-A		Investments in Credit-Linked Notes, Structured Products and Securities Overlying Securitization Structures
Section	624-A		Credit-linked Notes and Similar Credit Derivative Products
Section	625-A		Bank’s Exposures to Structured Products
Section	626-A		Expanded Foreign Currency Deposit Units Investments in Foreign Currency Denominated Structured Products
Section	627-A		Investments in Securities Overlying Securitization Structures
Section	628		Asset-Backed Securities

PART SEVEN – ELECTRONIC BANKING SERVICES AND OPERATIONS

Section	701		Electronic Banking Services
Section	702		Issuance and Operations of Electronic Money

PART EIGHT – REGULATIONS ON PAYMENT SYSTEMS

Section	801		Automated Teller Machines
Section	802		Check Clearing Operations
Section	803		National Retail Payment System

PART NINE – ANTI-MONEY LAUNDERING REGULATIONS

Section	901		Bangko Sentral Authority to Check Compliance with the AMLA, as amended
Section	902		Policy Statement
Section	903		Scope of Regulations
Section	904		Definition of terms
Section	905		Basic Principles and Policies to Combat Money Laundering
			A. RISK MANAGEMENT
Section	911		Risk Management
			B. PREVENTIVE MEASURES
Section	921		Customer Due Diligence
Section	922		Covered and Suspicious Transaction Reporting
Section	923		Additional Preventive Measures for Specific Customers and Activities
Section	924		Record Keeping
			C. TRAINING PROGRAM
Section	931		AML Training Program
			D. ENFORCEMENT ACTIONS
Section	941		Sanctions and Penalties
Section	942		Separability Clause

PART TEN – BSP REGULATIONS ON FINANCIAL CONSUMER PROTECTION

Section	1001		Consumer Protection Oversight Function
Section	1002		Consumer Protection Standards
Section	1003		Enforcement Actions

PART ELEVEN – OTHER BANKING REGULATIONS

			A. BANKING FEES/CHARGES
Section	1101		Assessment Fees on Banks
Section	1102		Collection of Fines and Other Charges from Banks
Section	1103		Service Fee for Transactions with the Bangko Sentral
			B. PHILIPPINE & FOREIGN CURRENCY NOTES & COINS
Section	1111		Philippine and Foreign Currency Notes and Coins
Section	1112		Adoption of Clean Note and Coin Policy
			C. PERSONAL EQUITY AND RETIREMENT ACCOUNT (PERA)
Section	1121		Personal Equity and Retirement Account (PERA) Market Participants and PERA Investment Products
			D. CREDIT RATING AGENCIES
Section	1131		Recognition and Derecognition of Domestic Credit Rating Agencies for Bank Supervisory Purposes
Section	1132		Internationally Accepted Credit Rating Agencies
Section	1133		Recognition and Derecognition of Microfinance Institution Rating Agencies
			E. PRODUCT OFFERING OF PARENT OF FOREIGN BANK BRANCHES
Section	1141-A		Offering in the Philippines of Products by Parent Bank and Branches Abroad of the Parent Bank
			F. FRAMEWORK ON THE GRANT OF REGULATORY RELIEF TO BANKS
Section	1151		Regulatory Relief Policy

APPENDICES