The Bangko Sentral ng Pilipinas (BSP) is proposing to expand the Comprehensive Credit and Equity Exposures (COCREE) report which it plans to go live by January next year.
The 2023 version, to be called COCREE 2.0, will now include all banks and non-banks in the country.
This is “in support of further strengthening the surveillance and analysis of emerging risks,” says BSP Governor Eli M. Remolona in the draft circular issued on Wednesday, Aug. 30.
BSP wants all banks to submit comments and recommendations to the BSP by Sept. 19.
BSP widens credit, equity monitoring of banks
Aug 30, 2023 05:38 AM
At a glance
To detect emerging risks to the financial sector, the Bangko Sentral ng Pilipinas (BSP) will expand the pilot testing of the new Comprehensive Credit and Equity Exposures (COCREE) report and eventual live implementation by January 2024.
COCREE allows the BSP an effective surveillance of the banking system, especially in the monitoring of banks’ exposures to individuals, companies and groups to scrutinize any emerging risks that could damage the P29.5 trillion domestic financial sector.
In a draft circular that BSP circulated Wednesday, Aug. 30, it is proposing an updated and bigger report to be referred to as “COCREE 2.0” which is the 2023 edition.
BSP Governor Eli M. Remolona, in the proposed circular, said this enhanced COCREE will now monitor all thrift banks, rural and cooperative banks, as well as trust companies.
This is a larger data input than COCREE’s original coverage of all universal and commercial banks or the big banks, plus subsidiary thrift banks, non-bank financial institutions with quasi-banking functions, as well as digital banks.
Remolona said the BSP will expand its data requirements “in support of further strengthening the surveillance and analysis of emerging risks” in all of the BSP-supervised financial institutions (BSFIs) and the financial system.
The proposed amendments to the 2021 COCREE circular will have a feedback deadline on Sept. 19. The BSP wants BSFIs to submit comments and recommendations by then.
Based on the draft circular, all big banks and its covered subsidiary banks including trust entities will have a live maiden submission of requirements by January 2024.
By February next year, non-linked thrift banks, non-banks and trust corporations will go live and by March, rural and cooperative banks.
When the circular is approved, the 2021 COCREE will no longer be required upon live implementation of COCREE 2.0, said the BSP.
To prepare for the live implementation, BSFIs will pilot test the submission of the new reporting by the last quarter of 2023.
COCREE is designed to capture granular borrower/counterparty'information for all credit and equity exposures of BSFIs.
As of end-May this year, the country’s financial sector has total resources of P28.528 trillion, up from same period in 2022 of P26.463 trillion, based on BSP data.
Banks account for P23.495 trillion of total resources while non-banks have P5.034 trillion. Of the banks, the 45 universal and commercial banks control the financial system with P22.078 trillion of total resources.