QuestionsQuestions (BSP CIRCULAR NO. 101)
It was issued pursuant to Monetary Board Resolution No. 1338 dated 22 November 1995, approving a new basis for computing annual fees; it amends Book I, II, III and IV of the Manual of Regulations.
It is the end-of-month total assets per balance sheet under Section 28 of R.A. No. 7653, after deducting cash on hand and amounts due from banks (including BSP and banks abroad), plus Trust Department Accounts.
Rate of Annual Fees = (0.005 × Aggregate GOI) / Aggregate AAAs.
Aggregate GOI is the combined gross operating income of banks, except stock savings and loan associations (SSLAs) and rural banks (RBs), and non-bank quasi-banks for the particular assessment period.
AAAs = (summation of end-of-month total assessable assets) divided by the number of months in operation during the particular assessment period.
Aggregate AAAs is the combined average assessable assets of banks (except SSLAs and RBs) and non-bank quasi-banks for the particular assessment period.
Stock Savings and Loan Associations (SSLAs) and Rural Banks (RBs) are excluded. SSLAs continue paying 1/20th of 1% of average assessable assets or the cost of maintaining the appropriate supervising and examining department, whichever is lower (as stated for thrift banks).
Rural banks pay 1/40th of 1% of average assessable assets (end-of-month balance sheets after deducting cash on hand and amounts due from banks, including BSP) or the cost of maintaining the Department of Rural Banks (DRB), whichever is lower.
The BSP Accounting Department debits the bank’s respective deposits with BSP upon receipt of the notice of assessment from the Department of Commercial Banks (DCB I/II) of the BSP Supervision and Examination Sector; if the deposit is insufficient, BSP bills the bank for the full amount or the remaining balance.
It must remit the corresponding amount within thirty (30) days from receipt of the bill to the BSP Accounting Department.
Failure to pay within the prescribed period subjects the institution to administrative sanctions.
The notice of assessment comes from the Department of Commercial Banks (DCB I/II) of the BSP Supervision and Examination Sector.
The notice of assessment comes from the Department of Thrift Banks and Non-Bank Financial Institutions (DTBNBFI) of the BSP Supervision and Examination Sector.
They are covered under Book IV via the newly added Section 4608Q. Annual fees for NBQBs are debited from their deposits with BSP upon receipt of a notice of assessment from DTBNBFI; if deposits are insufficient, BSP bills the NBQB for the full amount or remaining balance.
It amends Section 2608 to define “Total Assessable Assets” similarly and applies the same (0.005 × Aggregate GOI) / Aggregate AAAs formula for banks (except SSLAs and RBs) and quasi-banks; it retains a special SSLAs rule and adopts the same 30-day remittance and administrative sanctions framework.
It shall take effect immediately.