MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4611.12.31the pricing date and reflect the differentialin pricing on that date between the initialreference security or rate and the steppedupreference security or rate;i) It must be underwritten by a thirdparty not related to the issuer bank noracting in reciprocity for and in behalf of theissuer bank;j) It must be issued in minimumdenominations of at least P500,000.00 orits equivalent;k) It must clearly state on its face thatit is not a deposit and is not insured by thePDIC; andl) The bank must submit a writtenexternal legal opinion that theabovementioned requirements, includingthe subordination features, have been met:Provided, That it shall be subject to acumulative discount factor of twenty percent(20%) per year during the last five (5) yearsto maturity [i.e., twenty percent (20%) if theremaining life is four (4) years to less thanfive (5) years, forty percent (40%) if theremaining life is three (3) years to less thanfour (4) years, etc.]: Provided, further, Thatwhere it is denominated in a foreigncurrency, it shall be revalued in accordancewith PAS 21: Provided, furthermore, Thatfor purposes of reserve requirementregulation, it shall not be treated as timedeposit liability, deposit substitute liabilityor other forms of borrowings.15. Capital instruments issued by QBsstarting 01 January 2011 should complywith the minimum conditions specified inAppendix Q-46c in order to be eligible asHybrid Tier 1 or Lower Tier 2 capital.(As amended by Circular Nos.716 dated 25 March 2011 and709 dated 10 January 2011)Part III. Credit risk-weighted assetsA. Risk-weighting1. Banking book exposures shall berisk-weighted based on third party creditassessment of the individual exposure givenby eligible external credit assessmentinstitutions listed in Part III.C. The tablebelow sets out the mapping of external creditassessments with the corresponding riskweights for banking book exposures.Exposures related to credit derivatives andsecuritizations are dealt with in Parts IV andV, respectively. Exposures should be riskweightednet of specific provisions.STANDARDIZED CREDIT RISK WEIGHTSCredit Assessment 1 AAA AA+ to A+ BBB+ to BB+ to B+ BelowAA- to A- BBB- BB- to B- B- UnratedSovereigns 0% 0% 20% 50% 100% 100% 150% 100%MDBs 0% 20% 50% 50% 100% 100% 150% 100%Banks 20% 20% 50% 50% 100% 100% 150% 100% 2Interbank call loans 20%Local government units 20% 20% 50% 50% 100% 100% 150% 100% 2Government corporations 20% 20% 50% 100% 100% 150% 150% 100% 2Corporates 20% 20% 50% 100% 100% 150% 150% 100% 2Housing loans 50%MSME qualified portfolio 75%Defaulted exposuresHousing loans 100%Others 150%ROPA 150%All other assets 100%12The notations follow the rating symbols used by Standard & Poor's. The mapping of ratings of all recognized externalrating agencies is in Part III.COr risk weight applicable to sovereign of incorporation, whichever is higherQ RegulationsAppendix Q-46 - Page 10Manual of Regulations for Non-Bank Financial Institutions