Bloomberg News

Philippines Studies Higher Capital Charge on NDFs, Tetangco Says

September 30, 2011

Sept. 30 (Bloomberg) -- The Philippine central bank will likely ask lenders to set aside more capital to cover non- deliverable currency forwards or NDFs and is studying the appropriate level, Governor Amando Tetangco said today.

The regulator is getting feedback from banks on the NDF policy, Tetangco told a media briefing. The bank’s supervision unit is soliciting comments from lenders on a plan to impose a 187.5 percent market risk weight on NDFs, according to a draft guideline obtained by Bloomberg News earlier this month.

--With assistance from Cecilia Yap and Max Estayo in Manila.

To contact the reporter on this story: Karl Lester M. Yap in Manila at kyap5@bloomberg.net

To contact the editor responsible for this story: Clarissa Batino at cbatino@bloomberg.net


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