The Central Bank of the Philippines has granted temporary regulatory relief to banks and quasi-banks to cushion the impact of market volatility linked to the Middle East conflict. The measure allows eligible institutions to temporarily exclude certain unrealized losses, or paper losses, on peso government securities from the computation of regulatory capital so that transitory market movements do not unduly weaken reported capital positions. The relief applies from 1 April to 31 December 2026. Banks and quasi-banks using the relief must continue to disclose all unrealized losses in reports to the central bank and in their financial statements. The usual capital rules will apply again beginning in January 2027.
Central Bank of the Philippines2026-06-23
Central Bank of the Philippines grants temporary capital relief on unrealized losses in peso government securities through December 2026
The Central Bank of the Philippines has given banks and quasi-banks temporary relief by allowing certain unrealized losses on peso government securities to be excluded from regulatory capital calculations. The measure, introduced in response to market volatility tied to the Middle East conflict, runs from 1 April to 31 December 2026. Full disclosure of those losses remains required, and normal capital rules resume in January 2027.