MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has agreed to give banks that are hit hard by the Middle East war-induced surge in bond yields a time-bound leeway to manage paper losses that will otherwise erode their capital strength.
This new regulatory relief waives the mark-to-market requirement for peso-denominated government securities (GS) from April to December this year, for as long as the banks will move the battered GS holdings from a trading portfolio to the basket that will be held until maturity.
READ: BSP offers loan relief amid energy crisis
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This can uplift banks that have seen a sharp decline in the valuation of GS holdings.FEATURED STORIES
