The Central Bank of the Philippines gathered representatives of BSP-supervised financial institutions on 25 June 2026 to discuss implementation of the Countercyclical Capital Buffer framework. Under the framework, capital equal to 1.5 percent of risk-weighted assets is designated as a buffer that banks may draw down during periods of stress. The measure is structured as a positive neutral CCyB, meaning it is set above zero in normal conditions, and it does not require banks to raise new capital because it is earmarked from existing Common Equity Tier 1 capital. The briefing, organized by the Office of Systemic Risk Management, covered the framework's policy rationale, scope and application, implementation timeline, interaction with existing capital requirements, and the indicators that will guide future CCyB assessments and policy recommendations. The Central Bank of the Philippines also said CCyB assessments will be conducted quarterly. The discussion forms part of the central bank's ongoing engagement with supervised institutions to support implementation of the new framework.
Central Bank of the Philippines2026-07-14
Central Bank of the Philippines briefs supervised institutions on countercyclical capital buffer framework with 1.5 percent positive neutral buffer
The Central Bank of the Philippines briefed supervised financial institutions on its Countercyclical Capital Buffer framework, which designates capital equal to 1.5 percent of risk-weighted assets as a positive neutral buffer that can be used in stress periods. Banks are not required to raise new capital, as the buffer is carved out of existing Common Equity Tier 1 capital. The central bank said CCyB assessments will be conducted quarterly.