QuestionsQuestions (BSP CIRCULAR NO. 514, S. 2006)
It was issued pursuant to Monetary Board Resolution No. 168 dated 10 February 2006.
To add “Dosri rules” provisions on government borrowings to the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).
Subsec. X337.1 is added to the MORB, expanding Dosri rules for government borrowings.
Loans, other credit accommodations, and guarantees granted to the National Government/Republic of the Philippines (ROP), its political subdivisions and instrumentalities, and government-owned or controlled corporations (GOCCs).
They are considered: (a) non-risk; and (b) not subject to any ceiling.
They are treated as “indirect borrowings of the ROP” if the ROP and/or its agencies/departments/bureaus, and/or GOCCs own at least 20% of the borrowing corporation’s subscribed capital stock; such loans form part of both the individual and aggregate ceilings.
When the ROP, its agencies/departments/bureaus, and/or GOCCs own at least twenty percent (20%) of the subscribed capital stock.
The BSP is considered an independent entity, hence not a related interest of the ROP; loans to the BSP are considered non-risk and not subject to any ceiling.
Fiscal autonomy under R.A. No. 7653 and constitutional independence.
LGUs are considered separate from the ROP and from one another due to full autonomy in proprietary functions under the Local Government Code, subject to limitations provided by law; thus they are not treated as related interests of the ROP for Dosri purposes.
No. If a director acts as a government representative in the lending institution, the director shall not be excluded from deliberations or from determining the majority of directors in such cases.
Yes. The director shall be excluded from deliberation and from determining the majority of directors in cases where the borrowing government entity is other than the ROP and the director has an existing role under DOSRI regulations.
It refers to limits on exposures (loans/credit accommodations/guarantees) allowed under Dosri rules; the Circular specifies when exposures are not subject to any ceiling and when they must be included in individual/aggregate ceilings.
Such loans must be counted as part of both the individual ceiling and the aggregate ceiling under Dosri rules.
No. It also applies to quasi-banks and other non-bank financial institutions, by adding the provisions to the Q-Regulations and N-Regulations of the MORNBFI.
Fifteen (15) days following its publication in either the Official Gazette or a newspaper of general circulation.