Bank Debt Issues
- Long-Term Negotiable Certificates of Deposit (LTNCD) – are negotiable certificates of deposit indicating an amount of indebtedness of a Bank with a designated maturity. LTNCDs constitute direct, unconditional, unsecured and unsubordinated obligations of issuing Banks. LTNCDs are insured with the Philippine Deposit Insurance Corporation (PDIC) for up to the maximum insurance set out in and subject to PDIC’s applicable rules and regulations.
- Unsecured Subordinated Debt Qualifying as Lower Tier 2 Capital (Tier 2 Notes) – Tier 2 Notes are debt instruments issued by Banks to strengthen their Capital base as such Notes qualify as Lower Tier 2 Capital. The Tier 2 Notes constitute direct, unconditional, unsecured and subordinated obligations of the Bank. Tier 2 Notes, however are not deposits and as such, are not insured by the Philippine Deposit Insurance Commission (PDIC).