Circular 750 of the Bangko Sentral ng Pilipinas hereby states the amendments on certain provisions of the MORB on the risk weighting of bank loans to the extent guaranteed by the Agricultural Guarantee Fund Pool, in accordance with the Resolution 276 of the Monetary Board.
Particular attention should be given on the amendments under (1) Part III of 63b (Appendix to Section XII5) of the MORB and (2) Part 111 of Appendix 63c of the MORB on credit risk weighted assets under the risk based capital adequacy framework for all types of banks.
For item 1, loans to small farmers and fisherfolk engaged in food production activities to the extent guaranteed by AGFP shall be risk weighted at 20 percent provided that the maximum allowable leveraging ratio of the fund maintained to guarantee bank loans shall be three and, furthermore, that the fund maintained to guarantee bank loans is invested in assets that are 0% risk weighted under the risk based capital adequacy framework.
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