MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4611.12.31Sovereign Exposures2. These include all exposures tocentral governments and central banks. AllPhilippine peso (Php) denominatedexposures to the Philippine NationalGovernment (NG) and the BSP shall be riskweightedat zero percent (0%). Foreigncurrency denominated exposures to the NGand the BSP, however, shall be riskweightedaccording to the table above:Provided, That only one-third(1/3) of the applicable risk weight shall beapplied from 01 July 2007, two-thirds (2/3)from 01 January 2008, and the full riskweight from 01 January 2009 1 . Exposuresto the Bank for International Settlements(BIS), the International Monetary Fund (IMF),and the European Central Bank (ECB) andthe European Community (EC) shall alsoreceive zero percent (0%) risk weight.(As amended by Circular No. 588 dated 11 December 2007)MDB Exposures3. These include all exposures tomultilateral development banks. Exposures tothe World Bank Group comprised of theIBRD and the IFC, the ADB, the AfDB, theEBRD, the IADB, the EIB, the EuropeanInvestment Fund (EIF), the NIB, the CDB,the Islamic Development Bank (IDB), andthe CEDB currently receive zero percent(0%) risk weight. However, it is theresponsibility of the bank to monitor theexternal credit assessments of multilateraldevelopment banks to which they have anexposure to reflect in the risk weights anychange therein.Bank Exposures4. These include all exposures toPhilippine-incorporated banks/QBs, as wellas foreign-incorporated banks.Interbank Call Loans5. Interbank call loans refer tointerbank loans that pass through theInterbank Call Loan Funds Transfer Systemof the BSP, the BAP, and the PCHC.Exposures to Local Government Units6. These include all exposures tonon-central government public sectorentities. Bonds issued by Philippine localgovernment units (LGU Bonds), which arecovered by Deed of Assignment of InternalRevenue Allotment of the LGU andguaranteed by the LGU GuaranteeCorporation shall be risk-weighted at thelower of fifty percent (50%) or theappropriate risk weight indicated in the tableabove.Exposures to Government Corporations7. These include all exposures tocommercial undertakings owned by centralor local governments. Exposures toPhilippine GOCCs that are not explicitlyguaranteed by the Philippine NG are alsoincluded in this category.Corporate Exposures8. These include all exposures tobusiness entities, which are not consideredas micro, small, or medium enterprises(MSME), whether in the form of acorporation, partnership, or soleproprietorship.These also include allexposures to FIs, including securitiesdealers/brokers and insurance companies,not falling under the definition of Bank inparagraph 4.Housing Loans9. These include all current loans toindividuals for housing purpose, fullysecured by first mortgage on residentialproperty that is or will be occupied by theborrower.Micro, Small, and Medium Enterprises10. An exposure must meet thefollowing criteria to be considered as an1The capital treatment of QB's holdings of ROP Global Bonds paired with Warrants under the BSP's revised risk-basedcapital adequacy framework is contained in Appendix Q-46a.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-46 - Page 11