October 12th, 2023
Rep. Joey Sarte Salceda
12 October 2023
The request for regulatory relief relates to the capital adequacy requirements of both banks. The nature of the relief will probably be to include their exposure to Maharlika as “admissible” under the risk-weighting system of the BSP. In simpler terms, there’s nothing fancy here.
The BSP wouldn’t be going out of its way in this case. Maharlika is a sui-generis investment by LBP and DBP, and it isn’t currently listed as investments that count as “capital” under BSP rules. That’s simply because prior to Maharlika, we didn’t have this kind of vehicle in the country.
MIF is expected to be fully organized by the end of the year, and initial investments will likely be made by Q1 2024.