This is to notify all member banks of the amendments of certain provisions of the MORB with regards to the approval/confirmation of directors and officers. The revisions are in pursuant to Resolution Nos. 588 and 596A, both issued by the Monetary Board.
Guidelines in Strengthening Corporate Governance
May 14, 2012 2 Comments
As part of the Bangko Sentral’s commitment to continuously strengthen corporate governance in all of its’ supervised financial institutions, Circular 749 has been amended in accordance with Resolution No. 625 of the Monetary Board. This is also to harmonize the existing BSP guidelines with those of the Principles for Enhancing Corporate Governance issued by the Basel Committee on Banking Supervision. These amendments are specifically on subsections of the MORB on Definition and Limits, Qualifications of a director and, duties and responsibilities of the board. Some of the subjections are likewise renumbered, such as Subsection X142.3, X174 to x176.
Limits on borrowings of LGUs
April 30, 2012 Leave a Comment
In accordance with MB Resolution No 7, all banks are advised to require the submission of Certificate of Net Service Ceiling and Borrowing, issued by the Bureau of Local Government on Finance from an LGU-borrower, as instructed by the Executive Director of said bureau in her letter dated February 7, stating that banks and other lending institutions should exercise due diligence in the granting of loan to LGUs by reviewing their paying capacities and the viability of projects to be funded from the proceeds of the loan…since the BLGF cannot legally impose a cap on LGU borrowings. These limitations are evident in the formula stipulated in the Computation for Debt Service and Borrowing Capacity, which explains, among others, the maximum amount that an LGU can appropriate for the payment of obligations.
Circular on granting of Full Trust License
April 30, 2012 Leave a Comment
This is regarding the recently issued Circular 756 on the granting of Full Trust License and Investment Management Authority, please take note of the following amendments on X414.1 and X414.2 (d), or on the subsections on Required Capital and Prerequisites for engaging in investment management activities of the Manual on Regulations for Banks.
Updated Rules Implementing the Truth in Lending Act
April 24, 2012 4 Comments
With the effectivity date of the Truth in Lending Act fast approaching, we would like to call all member RBs to review the recently issued circular on the modified and updated Rules Implementing the Truth in Lending Act to Enhance Loan Transaction Transparency for Non-Bank Financial Institutions (NBFIs) under BSP Supervision, and Penal Provisions on Banks and NBFIs for Non-Compliance with the Applicable BSP Rules and Regulations. Kindly take note of the changes in the numberings, modified wordings and new subsections, which as stated above, help enhance transparency.
Anti-Money Laundering Risk Rating System
April 13, 2012 1 Comment
This is to notify all members and partners of RBAP of the newly issued Anti-Money Laundering Risk Rating System, adopted under MB Resolution 362 dated March 2 of this year. With the approval of this rating system, expect the inclusion of new composite rating scheme, assessment tools, guidelines and the like when the BSP conducts an on-site examination. The guidelines, sample questionnaire, details on audit control are provided below, which the BSP requires all covered financial institutions to thoroughly review and comprehend.
Change in the Maturity of Placements in the Reserve Deposit Account Facility
April 9, 2012 Leave a Comment
In connection with Resolution No. 475 of the Monetary Board, please be advised of the following amendments on the provisions of CL 539 of August 2006 and CL 551 of November 2006. The amendments are as follows:
Clarification on Secured loan and borrowing accommodation
April 9, 2012 4 Comments
For your information and guidance, kindly refer to the provisions of item K.1 of Subsection X326.1 of the Manual of Regulations for Banks on the definition of secured loan, borrowing or other credit accommodation, as follows:
Accredited Rural Financial Institutions
April 9, 2012 Leave a Comment
This is to notify all RBs and partners that the BSP has certified four banks, three of which are RBs, as Accredited Rural Financial Institutions in accordance with the Rules and Regulations of RA 10000, otherwise known as the Agri Agra Reform Credit Act of 2009, and BSP Circular 736. With the accreditation, the four banks are provided with the corresponding Certificate of Accreditation bearing an Accreditation Reference Number.
CL 753: Unification of the Statutory/Legal and Liquidity Reserve Requirement
April 4, 2012 Leave a Comment
To all member RBs and partners, please be advised of Circular 753 or the Unification of the Statutory/Legal and Liquidity Reserve Requirement, Non-Remuneration of the Unified Reserve Requirement, Exclusion of Vault Cash and Demand Deposits as Eligible Forms of Reserve Requirement Compliance, and Reduction in the Unified Reserve Requirement Ratios
Advisory on New Transaction Codes
April 2, 2012 Leave a Comment
To all Compliance Officers
Please be advised that 58 new transaction codes identified by various covered institutions were approved by the undersigned on 15 March 2012, pursuant to an authorization from the AMLC. These additional transaction codes have been incorporated in the AMLC transaction codes library and are available for use by the covered institutions.
Authority to open/extend banking operations
March 23, 2012 Leave a Comment
To all authorized BIR Agent Banks, Memorandum 014 of the BSP authorizes said agent banks to render banking services from 9 am to 5 in the afternoon on march 31 and April 14 and; extend banking operations up to 5 pm from April 2 to 15, 2012.
Rectified link for IT Profile Template
March 6, 2012 Leave a Comment
For those rural banks that have been attempting to access the sample template from the BSP website, please use the following link, as specified in the corrected Memorandum 011. http://www.bsp.gov.ph/frp/templates
Amendments on risk weighting of bank loans guaranteed by AGFP
March 2, 2012 1 Comment
Circular 750 of the Bangko Sentral ng Pilipinas hereby states the amendments on certain provisions of the MORB on the risk weighting of bank loans to the extent guaranteed by the Agricultural Guarantee Fund Pool, in accordance with the Resolution 276 of the Monetary Board.
Guidelines in Strengthening Corporate Governance
March 1, 2012 Leave a Comment
To all rural bankers, pleased be informed of the recently issued Circular 749 or the approved Guidelines in Strengthening Corporate Governance in BSP supervised Financial Institutions. Pursuant to Resolutions 111 and 227 of the Monetary Board, the 29-page circular stipulates the amendments on the Manual of Regulations for Banks under Subsections X141, X142, X174 to x177.
