The BSP is reducing reporting requirements related to the borrowings of directors, officers, stockholders and their related interests.
The BSP (Bangko Sentral ng Pilipinas) has reduced the number of reports supervised banks and nonbank financial institutions have to submit to meet their statutory disclosure requirements.
In a circular, BSP said it would remove a total of 12 reports, largely to reduce the frequency at which financial institutions have to submit information related to the borrowings of directors, officers, stockholders and their related interests (DOSRI), in favour of a semestral (every six months) certification on DOSRI transactions.
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 to secure prior written approval by the majority of all the directors of the board.
Additionally, supervised financial institutions will be released from having to submit quarterly reports on their underwriting activities, the annual general information sheet following stockholders’ meeting, and weekly reports on banks’ peso-denominated common trust funds and other similarly managed funds.
Recognising the “significant developments in the regulatory and business environment”, the BSP is continuously reviewing the prudential reports required from supervised financial institutions to ensure that information being gathered remains relevant to its surveillance and supervisory functions, the central bank said.
“The report rationalisation initiative also aims to contribute to continuing adherence to internationally recognised standards and practices on data aggregation and governance as well as to promote ease of doing business of BSFIs.”