The Monetary Board, in its Resolution No. 320 dated 3 March 2011, decided to amend Circular No. 709 dated 10 January 2011 on the definition of qualifying capital instruments under the Risk-Based Capital Adequacy Framework for Philippine banks/ quasi-banks, as follows:

œSection 1. Effective 1 January 2011, capital instruments issued by banks/ quasi-banks should comply with the following minimum conditions in order to be eligible as Hybrid Tier 1 or Lower Tier 2 capital, as applicable:

œ1.X X X

œ2.For Lower Tier 2 capital:

œX X X

œk)   The bank/quasi-bank must submit a written external legal opinion that the abovementioned requirements, including the subordination features, have been met:

œX X X

œSection 2. X X X 

This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.


Adopted: 25 March 2011


FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.
Governor