Source Document

Manual of Regulations for Banks

BSP.MORB.2023.Sec941.a-(3).p37.OBL1

Manual of Regulations for Banks > 941 SANCTIONS AND PENALTIES > Monetary penalty guidelines > (3)

Obligation Summary

Select penalty matrix A for a covered institution rated Composite 1 and matrix B for one rated 2 when setting the monetary penalty.

SHALLhigh priorityobligationprocessimplementation step
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If the Composite rating is “1” or “2”, penalty matrix A or B, respectively shall be used.

MORB, Sec. 941.a-(3), p. 37 (2023 ed.) · Manual of Regulations for Banks · p. 37

In the Documentp. 37

Part II – Guiding principles.

a. The first step is to determine the over-all risk rating of the Bangko Sentral covered institution for purposes of identifying which penalty matrix will be used. If the Composite rating is “1” or “2”, penalty matrix A or B, respectively shall be used. If the over-all rating is “3” and “4”, no monetary penalty shall be imposed.

b. Second step is to establish the asset size of the Bangko Sentral covered institution as of the cut-off period of examination;

Highlighted Text Is This Obligation

What This Requires.

ProfytAI Regulatory Intelligence

Type: implementation step

For covered institutions with a Composite rating of 1 or 2, the monetary-penalty computation must use penalty matrix A or B, respectively.

Relationship

The first step of the monetary-penalty computation, selecting which penalty matrix applies; no lead-in or parent clause is given, and it is immediately followed by the companion rule for Composite ratings 3 and 4.

Why This Exists

Ties the penalty framework applied to an institution's overall supervisory rating, so the matrix used reflects the institution's risk profile.

Implementation Considerations

Typically involves confirming the institution's current Composite rating before determining which penalty matrix table governs the sanctions computation.

Interpretation Note · 'Composite rating' is a rating construct referenced here but defined elsewhere in the Manual, not in this excerpt; 'respectively' ties rating 1 to penalty matrix A and rating 2 to penalty matrix B, external reference tables not reproduced here.

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Evidence Capturep. 37

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Captured source page for BSP.MORB.2023.Sec941.a-(3).p37.OBL1, MORB, Sec. 941.a-(3), p. 37 (2023 ed.)