Central bank streamlines regulations on bond issuance by banks and quasi-banks

October 7, 2017

The Monetary Board, the policymaking body of the central bank, approved amendments to pertinent regulations to streamline the requirements on the issuance of bonds and commercial papers by banks and quasi-banks, a statement said Saturday.

The amendments include removal of the minimum bond features, such as requirement on eligible collaterals, which may constrain banks and quasi-banks from issuing debt securities. The revised regulation reiterates compliance with the securities law and its implementing rules and regulations.

The new regulation aims to provide greater flexibility to banks and quasi-banks in tapping the capital market as an alternative funding source.  This is also consistent with the initiatives of the Bangko Sentral ng Pilipinas, with other financial regulators, to spur development of the domestic bond market. DMS