BSP rationalizes DOSRI reporting requirements
THE BANGKO SENTRAL ng Pilipinas (BSP) is rationalizing some prudential reporting requirements from its supervised financial institutions, as part of efforts to improve the ease of doing business in the country.
BSP Governor Benjamin E. Diokno on Wednesday signed Circular No. 1110, which removed 12 reports that are required to be submitted by banks and nonbank financial institutions.
The BSP circular will remove weekly requirements for banks to submit their daily reports related to borrowings of directors, officers, stockholders and their related interests (DOSRI). Instead, it will be replaced by a semestral certification on DOSRI transactions.
Financial institutions will also discontinue the quarterly and semestral reporting documents for submission related to the compliance on aggregate ceiling on direct credit accommodation of such entities.
Quarterly reports on underwriting activities, annual general information sheet following stockholders’ meeting, and the weekly report of commercial banks on peso-denominated common trust funds and other similarly managed funds will no longer be required to be submitted to the BSP.
The circular will take effect after 15 days of its publication in the Official Gazette or in a newspaper of general circulation.
“The report rationalization initiative aims to contribute to continuing adherence to internationally recognized standards and practices on data aggregation and governance as well as to promote ease of doing business,” Mr. Diokno said.
BSP Deputy Governor Chuchi G. Fonacier said the Financial Supervision Sector decided to review and rationalize the number of prudential reports, in light of significant changes and developments in the business and regulatory environment.
“Even with this rationalization of reporting requirements, BSP continues to adhere to internationally recognized standards and practices on data aggregation and governance,” Ms. Fonacier said in a text message.
Republic Act No. 8791 or the General Banking Law of 2000 imposed individual and aggregate ceiling requirements for credit disbursed to DOSRIs. These loans cannot exceed the capital contribution and deposit of the borrowing party and are required