(NAR) VOL. 15 NOS. 1-2 / APRIL - JUNE 2004
"Section X136.2 Requirements on the declaration of dividends At the time of declaration, banks shall have complied with the following:a. Clearing account with Bangko Sentral is not overdrawn;
b. Liquidity floor requirement for government funds;
c. Minimum capitalization requirement and risk-based capital ratio;
d. Prescribed EFCDU/FCDU cover consisting of1. 30% liquidity cover; ande. Statutory and liquidity reserves requirement; and
2. 100% asset cover;
f. No major violation as may be determined by the Bangko Sentral.
For purposes of this Subsection, the prescribed duration of compliance shall be reckoned from the last eight (8) weeks immediately preceding the date of the dividend declaration up to the record date of said dividend."
"Subsection X136.3 Net amount available for dividends. The net amount available for dividends shall be the amount of unrestricted or free earned surplus and undivided profits less:
a. Bad debts against which valuation reserves are not required by the BSP to be set up;
b. Unbooked valuation reserves, and other unbooked capital adjustments required by the BSP, whether or not allowed to be set up on a staggered basis;
c. Deferred income tax;
d. Accumulated profits not yet received but already recorded by a bank representing its share in profits of its subsidiaries under the equity method of accounting;
e. Accrued interest as required to be excluded pursuant to Item "d" of Subsection X305.4, net of booked valuation reserves on accrued interest receivable or allowance for uncollectible interest on loans; and
f. Foreign exchange profit arising from revaluation of foreign exchange denominated accounts.