The Bangko Sentral ng Pilipinas (BSP) is coming up with a “fit and proper” system that banks and non-banks can use as metric while it is developing supervisory processes by further enhancing its data analytics and SupTech capabilities.
In a report, the BSP said it will focus on improving data analytics and SupTech or supervisory technology capabilities through the launch of the fit and proper system which is intended for use by BSP-supervised financial institutions (BSFIs) and in the implementation of the Comprehensive Credit and Equity Exposures Report (COCREE).
The BSP has yet to detail how they plan to utilize the fit and proper system in SupTech and how it will have supervisory use cases for the COCREE data.
The BSP’s Advance Suptech Engine for Risk-based Compliance or ASTERisC* is one of the pioneers in digitizing supervisory and regulatory processes in the world. The SupTech has improved the BSP’s coordinated and intelligence-driven cybersecurity supervision.
BSP Deputy Governor Chuchi G. Fonacier who heads BSP’s financial supervision sector, has said that with the ASTERisC* platform, the BSP can be more proactive in deploying early interventions and preventing cybersecurity attacks.
The BSP implemented ASTERisC* on Jan. 1, 2023. Based on a memo issued Oct. 27 last year, a select number of BSFIs that meets the requirements for a “predefined criteria” are first to be covered. These BSFIs were allowed to access the system in advance to prepare the lT profile data.
The BSP defines ASTERisC* as a unified Regulatory and Supervisory Technology solution that streamlines and automates regulatory supervision, reporting, and compliance assessment of BSFIs' cybersecurity risk management systems and processes.
Participating BSFIs can access the system via a cloud-based web application by providing the necessary credentials. As a cloud-based solution, ASTERisC* supports the BSP's end-to-end process on cybersecurity supervision and oversight to include cyber-profiling, cyber incident reporting and cybersecurity control self-assessments, among others.
Meanwhile, COCREE and its enhanced version COCREE 2.0 is expected to further strengthen the surveillance and analysis of emerging risks to all banks.
The report is designed to capture BSFIs’ granular borrower/counterparty information for all credit and equity exposures.
The COCREE, using new technologies, will provide more granular information to support on-site examination and off-site surveillance activities, including forward-looking stress testing and scenario analysis, both on a micro and macro level.
The BSP has recently extended the live reporting for COCREE. Covered banks are required to submit credit and equity exposures for the period ending Sept. 30, 2024 instead of the original schedule of June 30.
The live implementation of COCREE 2.0 will include all big banks or universal and commercial banks, their subsidiary thrift banks/non-bank financial institutions with quasi-banking functions (NBQBs), as well as subsidiary trust corporations and digital banks.