THE Monetary Board has released the guidelines for banks to make use of the Japanese yen/Philippine peso (JPY/PHP) Swap Facility that the Bangko Sentral ng Pilipinas (BSP) and the Bank of Japan (BOJ) created last year under a cross-border liquidity agreement.
The Resolution No. 1281of the Monetary Board states that a bank can avail of the JPY/PHP Swap Facility provided it has established the presence of an “emergency situation;” it has yen holdings that can be delivered and deposited to the Bangko Sentral’s account at the BOJ; it has CAMELS/ROCA composite rating of at least “3” and a Management/Risk Management component rating of at least “3” in the latest Report of Examination; it has no unsaf e or unsound banking practice cited in the latest Report of Examination; and it has complied with the minimum capital requirement and risk-based capital ratio as provided under applicable and existing capital adequacy framework.
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