Question & AnswerQ&A (EXECUTIVE ORDER NO. 346)
Total Assessable Assets refer to the total assets under Section 28 of R.A. No. 7653 as shown in the end-of-month total assets per balance sheet, after deducting cash on hand and amounts due from banks including BSP and banks abroad, plus Trust Department Accounts.
Average Assessable Assets (AAA) is computed by summing the end-of-month (for banks and thrift banks) or end-of-quarter (for quasi-banks) total assessable assets divided by the number of months or quarters in operation during the assessment period.
The prescribed rate of annual fees for commercial banks for 1994, 1995, and 1996 is one twenty-eighth (1/28) of one percent (1%) multiplied by the Average Assessable Assets (AAA) for each respective year.
Annual fees are debited from the banks' respective deposits with the Bangko Sentral ng Pilipinas (BSP) by the BSP Accounting Department upon receipt of the notice of assessment from the Department of Commercial Banks.
If the deposit account is insufficient, the BSP Accounting Department shall bill the bank for the full amount or the balance of the annual fee not covered by its deposit account. The bank must remit payment within thirty days from receipt of the bill, or face administrative sanctions.
No, the annual fees rate for thrift banks including savings, mortgage, and private development banks is also one twenty-eighth (1/28) of one percent (1%) multiplied by their Average Assessable Assets, similar to commercial banks, except for Stock Savings and Loan Associations where a different rate applies.
For SSLAs, the annual fees rate is one twentieth (1/20) of one percent (1%) of average assessable assets or the cost of maintaining the appropriate supervising and examining department of BSP, whichever is lower.
Annual fees on quasi-banks are computed based on a rate of one twenty-eighth (1/28) of one percent (1%) multiplied by the Average Assessable Assets computed on an end-of-quarter basis. Fees are debited from quasi-banks' deposits with BSP or billed if deposits are insufficient.
Failure to pay the annual fee within thirty days from receipt of the bill subjects the bank, thrift bank, or quasi-bank to administrative sanctions as determined by the BSP.
BSP Circular No. 111A took effect immediately upon its adoption on August 1, 1996.