QuestionsQuestions (BSP CIRCULAR NO. 745, S. 2011)
It amends the MORNBFI and MORB to set/clarify the reporting requirements on the write-off of loans, other credit accommodations, advances, and other assets as bad debts, including the deadline and required supporting documents.
A “Notice” of the write-off (in the prescribed form) to the appropriate department of the SES concerned.
Within thirty (30) business days after every write-off.
Within thirty (30) banking days after every write-off.
A sworn statement signed by the President (or officer of equivalent rank) stating that the write-off did not include transactions with DOSRI, and a copy of the Board Resolution approving the write-off.
A sworn statement signed by the President (or officer of equivalent rank) stating that the write-off did not include transactions with DOSRI, and a copy of the Board Resolution approving the write-off.
To certify that the write-off did not include transactions involving DOSRI (Directors, Officers, Stockholders, or their related interests), which is important for regulatory oversight and compliance with banking rules on related party transactions.
It serves as documentary proof that the board approved the write-off; a copy must be attached/submitted with the Notice/Application.
Write-offs on loans, other credit accommodations, advances, and other assets shall be subject to verification during BSP examination.
For QBs: Subsec. 4306Q.5 of the MORNBFI and Appendix Q-3. For banks: Subsection X306.5 of the MORB and Appendix 6.
It revised the deadline on submission to within thirty (30) business days for QBs and within thirty (30) banking days for banks after every write-off (Schedule 1).
It takes effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.
Pursuant to Monetary Board Resolution No. 1952 dated 27 December 2011.
It requires submission after every write-off (i.e., a Notice/Application for each write-off instance), within the prescribed days.
To the appropriate department of the SES concerned (as specified in the Circular’s wording) in the prescribed form.
QBs follow “thirty (30) business days,” while banks follow “thirty (30) banking days” after every write-off.
Because the Circular requires the Notice to be submitted in the prescribed form and supported by mandatory documents to ensure regulatory compliance, auditability, and verification during BSP examination.