The Monetary Board (MB) approved amendments to pertinent regulations to streamline the requirements on the issuance of bonds and commercial papers by banks and quasi-banks (QBs).
The amendments include removal of the minimum bond features, such as the requirement on eligible collaterals, which may constrain banks and QBs from issuing debt securities. The revised regulation however reiterates compliance with the securities law and its implementing rules and regulations.
The new regulation aims to provide greater flexibility to banks and QBs in tapping the capital market as an alternative funding source. This is also consistent with the initiatives of the BSP, together with other financial regulators, to spur the development of the domestic bond market.
Source: Bangko Sentral ng Pilipinas (BSP)