Asia bank capital series: Philippines’ Basel III implementation explained

Author: Ashley Lee | Published: 29 Aug 2013
  • The Philippines will implement Basel III’s capital requirements by January 1 2014;
  • Market participants agree the country has a strong banking system, following lessons learned in the 1997 Asian financial crisis;
  • Banks are already looking to Basel III-compliant issuances. This is because instruments issued before December 31 2010 that do not meet the eligibility criteria under the revised capital framework will not be recognised as capital once Basel III is implemented.

While most jurisdictions are phasing in Basel III’s capital requirements, the Philippines is taking a more straightforward approach. It is requiring all banks to comply by January 1 2014, and in the meantime, the market expects to see the issuance of Basel III-compliant securities.

While the country is not a member of the Basel Committee of Banking...