BSP abolishes 21 bank reports

Published November 3, 2019, 12:00 AM

by manilabulletin_admin

By Lee C. Chipongian

The Bangko Sentral ng Pilipinas (BSP) has abolished 21 reports it used to require from banks as part of its report rationalization initiative.

MB file photo.
MB file photo.

BSP Governor Benjamin E. Diokno, which just signed Circular No. 1057 for the “Rationalization of Prudential Reporting Requirements” said that the deletion of the 21 reports should “promote ease of doing business in BSFls (BSP supervised financial institutions).”

Diokno also noted in the circular memo that the report rationalization initiative “aims to contribute to continuing adherence to internationally recognized standards and practices on data aggregation and governance.”

“Cognizant of the significant developments in the regulatory and business environment, the BSP is continuously reviewing the prudential reports required from BSFIs to ensure that information being gathered remain relevant to the surveillance and supervisory functions of the BSP,” said Diokno.

The 21 reports to be deleted includes: the monthly derivative report; the semestral reporting of outstanding loans and advances, discounts and trading accounts; the weekly common trust fund report; the yearly self-assessment and certification of compliance with the rules and regulations on bank protection/updated security program; the yearly summary of loans granted; and the monthly report on credits granted by banking unit.

Related reporting of the initial adoption of new accounting standards PFRS9 was also removed.

In the meantime, the monthly reporting on the weighted average interest rates on outstanding loans and discounts and weighted average interest rates on savings deposits, as well as the weekly report on the volume and interest rates on loans and discounts granted will also be deleted from the list of required bank reporting upon the live implementation of the Interest Rate on Loans and Deposits by January 2020 based on previous circulars amending the reporting on bank loans and deposit interest rates.

Last January and then again in April this year, the BSP revised the required reports on interest rates on loans and deposits being submitted big banks and made it more granular to “provide the public with more information in making decisions.”

The improved report structure required banks to disclose interest rates on actual loans granted and deposits generated classified as to product types, maturity period/terms, and size of deposits as of a given reference period.

According to the BSP, the information from the enhanced reporting provides analytical support for policy decisions as well as assessment of interest rate risk exposure of the industry. Also, the data on bank interest rates on loans and deposits are published on the BSP website on a regular basis.

“These will provide consumers with more valuable information to compare costs and evaluate their needs based on the best loans and deposits products available to them,” said the BSP. The enhanced reporting was implemented last March.