The Pinoy Business Chronicle

Business news and analysis. Covering financial news, economic issues, stock market data, local business, business policy and more.

Finance News

BSP extends transition for report changes

bsp extends transition for report changes - BSP extends transition for report changes
BSP 041519 - BSP extends transition for report changes
BW FILE PHOTO
BSP 041519 - BSP extends transition for report changes
BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) extended the transitory period for the amended report on bank interest rates on deposits and loans to Dec. 31, with implementation to start on Jan. 1, 2020, almost a year later than the original plan.

“This extension provides more time for banks to assess their compliance with the enhanced reporting structure prior to full implementation,” the BSP said in an advisory on Friday.

“During the extended transitory period, UBs/KBs (universal banks and commercial banks) are required to submit both the existing and amended reports without penalty until the full implementation of the enhanced reporting requirements beginning 01 January 2020,” according to BSP.

BSP Circular 1029 issued by Deputy Governor Chuchi G. Fonacier on Jan. 25 lists several changes to reporting templates, as they now require universal and commercial banks to submit more detailed reports to the BSP’s Supervisory Data Center the weekly data on the volume of transactions and weighted average interest rates on deposits received and loans granted with relevant details as to maturity, size and product category/type.

On top of this, lenders must also submit a monthly report on the weighted average interest rate on outstanding loans and deposits by product category or type. The reports specifically require banks to report the volume and interest rates charged for peso-denominated loans and receivables, peso deposits, and dollar deposits.

Currently, the BSP publishes quoted lending rates of commercial banks on the central bank web site.

The January circular gave banks the whole month of February as the transition period, while all changes to the reporting templates were supposed to effect last March 1.

“The information generated from said reports provide analytical support for policy decisions as well as assessment of interest rate risk exposure of the industry,” the central bank said in a statement in January, noting that the latest reforms will promote greater consumer protection and market transparency.

“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.”

While the BSP’s Monetary Board sets the benchmark interest rates for the Philippine financial system, lenders set their own lending and deposit rates by adding a premium on top of the central bank’s key policy rates. — RJNI

Leave a Reply

Theme by Anders Norén