BANGKO Sentral ng Pilipinas approved the exclusion of the short-term exposures of banks and quasi-banks to clearing and settlement banks arising from payment transactions from the single borrower’s limit.
The regulator in a statement on Friday said the move was aimed to further promote the smooth functioning of financial markets and financial market infrastructures.
“Said exclusion was accorded as applying SBL to clearing and settlement accounts may impede financial market activities and fund transfers from one institution to another,” it said.
“Moreover, the distinct nature of clearing and settlement accounts as mere “pass through” for short-term payment transactions entails relatively low credit exposure to the clearing and settlement bank,” it said.
