Newsletter January 2012: Philippines’ banks must adopt Basel III in two years

MANILA – Universal and commercial banks in the Philippines have been told they must adopt the Basel III capital adequacy standards within two years. The announcement was made in early January by the country’s central bank, Bangko Sentral ng Pilipinas (BSP). It said: “The Monetary Board decided to adopt the capital adequacy standards in full by January 2014 without recourse to a staggered implementation or a gradual phase-out of ineligible capital instruments. This recognises the present strong capital position of the banking industry while providing for a reasonable transition period.”