Question & AnswerQ&A (BSP Circular No. 883)
The circular amends pertinent regulations on Motor Vehicle Loans, including the Manual of Accounts and reporting templates for banks, NSSLAs, and financing companies.
Motor Vehicle Loans refer to the amortized cost of loans granted to individuals for the acquisition of motorized land transportation vehicles primarily for personal use, which may be considered secured if the chattel mortgage requirements are met and registered with the Registry of Deeds and LTO.
The sub-categories are Auto Loans (for automobiles primarily for personal use) and Motorcycle Loans (for motorcycles primarily for personal use).
The Financial Reporting Package for Banks (FRP) and the Simplified Financial Reporting Package for Rural and Cooperative Banks (SFRP) are amended to revise reporting templates to include Motor Vehicle Loans and its sub-accounts.
Subsection X191.2 of the MORB (Manual of Accounts) was amended to include the definition and reporting of Motor Vehicle Loans under Loans and Receivables - Others.
Reporting templates such as 11, 11a, 11a1, 11a2, 11a3, 11a4, 11b, 11b1, 11b2, and several others were revised to show lines for Motor Vehicle Loans and their sub-accounts.
Banks, Non-Stock Savings and Loan Associations (NSSLAs), and Financing Companies are required to adopt the revised reporting templates.
The revised reporting templates became effective starting report ending June 30, 2015.
The CSOC was amended to show a line for each Motor Vehicle Loans account and sub-accounts classified under Loans and Discounts.
The Circular takes effect fifteen (15) calendar days following its publication in the Official Gazette or a newspaper of general circulation.