Moreover, to safeguard the confidence in the banking system, the Monetary Board approved on 30 October 2008 the guidelines allowing financial institutions to reclassify financial assets from categories measured at fair value to those measured at amortized cost.
Financial institutions were allowed to reclassify their investments in debt and equity securities from their Held for Trading or Available for Sale categories to the Held to Maturity or the Unquoted Debt Securities Classified as Loans. The BSP also allowed banks not to deduct unrealized mark-to-market losses in computing for the 100 percent asset cover for FCDUs, effective until 30 September 2009).