FBBs given until 2015 to comply with Basel

Foreign bank branches (FBB) that failed to meet the requirements for implementation of Basel III Accord next year will be given a year to comply until January 2015, according to a new framework approved by the Monetary Board (MB).

In a statement, the Bangko Sentral ng Pilipinas (BSP) said that the MB approved the amendments to the capital framework of FBBs operating in the Philippines. Under the new framework, the capital component of FBB that is classified as Tier 1 shall be predominantly composed of permanently assigned capital (PAC).