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Reduced interest rate reporting for banks take effect this month

reduced interest rate reporting for banks take effect this month 816x445 - Reduced interest rate reporting for banks take effect this month

THE Bangko Sentral ng Pilipinas (BSP) said the reduced reporting requirements for banks on their interest rates on loans and deposits (IRLD), eliminating daily reports from the industry’s regulatory obligations, take effect this month.

The new rules, first issued in October, require only weekly and monthly IRLD reports, according to a notice to banks issued by the BSP’s Department of Economic Statistics and provided to reporters.

“The Bangko Sentral is continuously reviewing the prudential reports required from BSP-supervised financial institutions (BSFIs) to ensure that information being gathered remain relevant to the surveillance and supervisory functions of the Bangko Sentral,” BSP Governor Benjamin E. Diokno said in the circular, dated Oct. 28, 2019.

The reports covern interest-bearing peso-denominated loans, including both secured and unsecured credit disbursed to resident borrowers, as well as peso and dollar deposits of resident depositors.

The BSP requires banks to disclose interest rates on loans and deposits by product type, tenor, and size.

The BSP said the revised reporting requirement for bank interest rates is geared towards boosting “financial literacy, consumer protection, and market transparency in the banking industry”.

Covered banks will need to comply with the reporting template available on the central bank website, as well as the unique codes assigned to each financial institution.

In December, the BSP requred bigger lenders to report intraday liquidity positions to determine banks’ capacity to meet their day-to-day obligations. — Luz Wendy T. Noble

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