QuestionsQuestions (BSP CIRCULAR NO. 209)
BSP Circular No. 209 (adopted 9 Sept. 1999) was approved by the Monetary Board under Resolution No. 1199 dated Aug. 27, 1999. It amends (a) Section 7 of BSP Circular No. 147 dated Oct. 24, 1997, (b) Subsection X162.2(b)(1)(a) of the Manual of Regulations for Banks, and (c) specific provisions in Appendices 6-A, 6-B, and 6-C regarding report forms and submission details.
For noncompliance/zero compliance with the prescribed ratio requirements—at least 6% for small enterprises and at least 2% for medium enterprises—a fine of not less than PHP 500,000.00 shall be imposed.
Undercompliance fines are per day of undercompliance, reckoned from the end of the reference quarter until full compliance: (1) Expanded Commercial Banks (EKBs), Commercial Banks (KBs), and branches of Foreign Banks (FXBs): PHP 5,000/day; (2) Thrift Banks (TBs): PHP 2,500/day; (3) Rural Banks (RBs)/Cooperative Banks (Coop Banks): PHP 1,000/day.
The daily fines are reckoned from the end of the reference quarter until the bank has fully complied with the credit allocation requirements. The daily fines continue to run until the appropriate BSP supervising and examining department receives the interim report accurately showing the bank’s compliance levels with both the 6% (small) and 2% (medium) ratios.
A fine of not less than PHP 500,000.00 is imposed uniformly on all banks for willfully making a false or misleading statement to the BSP about the bank’s compliance with the mandated 6% and 2% credit allocation requirements.
No. The imposition of fines under the items for noncompliance/undercompliance and false/misleading statements is expressly “without prejudice to the other administrative sanctions” under items (b), (c), (d), and (e) of Section 37 of Republic Act No. 7653.
Fines for non-submission/delay in submission of compliance reports are: EKBs/KBs/FXBs: PHP 1,000 per business day of delay; TBs: PHP 500 per business day of delay; RBs/Coop Banks: PHP 250 per business day of delay.
It amends Subsection X162.2(b)(1)(a) regarding fines for willful delay in submission of required reports. Specifically, it includes fines tied to Category A-1, A-2, and A-3 reports, and also references the report on compliance with mandatory credit allocation under RA 6977 (as amended by RA 8289).
For Category A-1, A-2 and A-3 reports: (1) PHP 1,200 per business day for EKBs/KBs, PHP 600 for TBs, and PHP 180 for RBs/Coop Banks until the report is filed with the BSP; and (2) for the report on compliance with the mandatory credit allocation under RA 6977 (as amended by RA 8289), PHP 1,000 for EKBs/KBs, PHP 500 for TBs, and PHP 250 for RBs/Coop Banks per business day of default until filed with the BSP.
The circular amends the provisions on DCB I/II Form 61 (Funds Set Aside for Small Enterprise Credit Under RA 6977) and specifies Category A-3 uses DCB I/II Form 6 with MOR Ref. X342.6: “Report on Compliance with Mandatory Credit Allocation Required under RA 6977 (as amended by RA 8289).”
For Category A-3, the frequency is quarterly and the deadline is 15 banking days after the end of the reference quarter. Submission includes original and duplicate copies, and the procedure specifies submission to the SMED Council (as indicated for each form category).
For RB/COB Form 12 (Funds Set Aside for Small Enterprises under RA 6977), the circular specifies Category A-3 uses the RB/COB report “Report on Compliance with Mandatory Credit Allocation Required under RA 6977 (as amended by RA 8289).” It is quarterly, due 15 banking days after end of the reference quarter, with original and duplicate copies, submitted in triplicate procedure to DRB (and triplicate to SMED Council as stated in the circular’s procedure line).
Thrift Banks submit TB Form II (MOR Ref. X342.6) titled “Report on Compliance with Mandatory Allocation Required under RA 6977 (as amended by RA 8289).” It is quarterly with a deadline of 15 banking days after the end of the reference quarter.
It takes effect after fifteen (15) days following the completion of its publication in a newspaper of general circulation.
Noncompliance/undercompliance with the 6% (small) and 2% (medium) ratios triggers specific fines (including daily fines for undercompliance and a minimum PHP 500,000 for noncompliance/zero compliance or false/misleading statements). Separately, non-submission or delayed submission of compliance reports triggers fines per business day of delay, with amounts varying by bank type.