Legal basis and regulatory amendments
- The circular amends Book I, Book II, Book III and Book IV of the Manual of Regulations governing annual fees computations and collections.
- Section 28 of R.A. 7653 is used as the basis for “end-of-month total assets” for fee computation.
- R.A. 7653 is referenced for the definition basis of “Total Assessable Assets” in the computation.
- Section 22 of R.A. 7353 is expressly used as the basis for annual fees for rural banks.
Policy and purpose
- The circular establishes revised bases and formulas for computing and collecting annual fees from banks and quasi-banks and related categories by amending the Manual of Regulations.
Defined computation term: Total Assessable Assets
- For purposes of computing annual fees chargeable against banks and quasi-banks, the term “Total Assessable Assets” means the amount referred to as total assets under Section 28 of R.A. 7653, which are end-of-month total assets per balance sheet, after deducting cash on hand and amounts due from banks, including the Bangko Sentral ng Pilipinas (BSP) and banks abroad, plus Trust Department Accounts.
- The same “Total Assessable Assets” concept is applied for commercial banks, thrift banks, and non-bank quasi-banks under the amended provisions.
Commercial banks: amended fee computation
- Book I, Section 1608 is amended to provide the annual fees framework for banks and quasi-banks.
- The prescribed annual fee computation rate for banks {except stock savings and loan associations (SSLAs) and rural banks (RBs)} and quasi-banks, beginning the second semester of 1993 and every year thereafter, is computed using the formula:
- Rate of Annual Fees = (0.005 x Aggregate GOI) / Aggregate AAAs.
- For the formula:
- Aggregate GOI means the combined gross operating income of banks, except SSLAs and RBs, and non-banks quasi-banks for the particular assessment period.
- Average Assessable Assets (AAAs) means the summation of end-of-month total assessable assets divided by the number of months in operation during the particular assessment period.
- Aggregate AAAs means the combined average assessable assets of banks, except SSLAs and RBs, and non-bank quasi-banks for the particular assessment period.
- Annual fees to be collected from banks must be debited to their respective deposits with the BSP by the BSP Accounting Department upon receipt of the notice of assessment from the Department of Commercial Banks (DCB I/II) of the BSP Supervision and Examination Sector.
- Where the bank’s deposit account is insufficient, the BSP Accounting Department bills the bank for the full amount of the annual fee or for the balance not covered by its deposit account.
- The bank must remit the required amount within thirty days from receipt of the bill to the BSP Accounting Department, and failure to pay within the prescribed period subjects the institution to administrative sanctions.
Thrift banks: fee rules and collection
- Book II, Section 2608 is amended to cover annual fees chargeable against banks and quasi-banks for thrift bank categories.
- For the general rule, the prescribed annual fee computation rate for banks {except SSLAs and RBs} and quasi-banks, beginning the second semester of 1993 and every year thereafter, is computed using:
- Rate of Annual Fees = (0.005 x Aggregate GOI) / Aggregate AAAs.
- The definitions used for the formula are the same as for commercial banks, including:
- Aggregate GOI as combined gross operating income of banks except SSLAs and RBs and non-banks quasi-banks for the assessment period.
- Aggregate AAAs as combined average assessable assets of banks except SSLAs and RBs and non-bank quasi-banks for the assessment period.
- Annual fees for Stock Savings and Loan Associations (SSLAs) must continue to be computed as 1/20th of 1% of average assessable assets or the cost of maintaining the appropriate supervising and examining department of the Bangko Sentral, whichever is lower.
- Annual fees to be collected from thrift banks must be debited to their BSP deposits by the BSP Accounting Department upon receipt of the notice of assessment from the Department of Thrift Banks and Non-Bank Financial Institutions (DTBNBFI) of the BSP Supervision and Examination Sector.
- Where the thrift bank’s deposit account is insufficient, the BSP Accounting Department bills the thrift bank for the full amount of the annual fee or the balance not covered.
- The thrift bank must remit the amount within thirty days from receipt of the bill, and failure to pay within the prescribed period subjects the thrift bank to administrative sanctions.
Rural banks: special lower-rate basis
- Book III, Section 3608(a) is amended to set annual fees for rural banks.
- Annual fees chargeable against a rural bank are computed as 1/40th of 1% of its average assessable assets shown on end-of-month balance sheets, after deducting cash on hand and amounts due from banks, including the BSP, or the cost of maintaining the Department of Rural Banks (DRB), whichever is lower.
- Annual fees from rural banks must be debited to rural banks’ deposits with the BSP by the BSP Accounting Department upon receipt of the notice of assessment from the DRB of the BSP Supervision and Examination Sector.
- Where the deposit account is insufficient, the BSP Accounting Department bills the rural bank for the full amount or the balance not covered.
- The rural bank must remit the amount within thirty day from receipt of the bill (as stated), and failure to pay within that period subjects the institution to administrative sanctions.
- Subsection 3608.1 is deleted.
Non-banks with quasi-banking function
- Book IV, Section 4608Q is added to establish annual fees on banks and quasi-banks for non-banks with quasi-banking function.
- “Total Assessable Assets” for computation purposes has the same meaning as in the amended provisions: 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.
- The prescribed annual fee computation rate for banks {except SSLAs and RBs} and quasi-banks, beginning the second semester of 1993 and every year thereafter, uses:
- Rate of Annual Fees = (0.005 x Aggregate GOI) / Aggregate AAAs.
- The formula terms Aggregate GOI and Aggregate AAAs apply as combined gross operating income and combined average assessable assets of the covered categories for the particular assessment period, excluding SSLAs and RBs.
- Annual fees chargeable against non-bank quasi-banks (NBQBs) must be debited to their BSP deposits by the BSP Accounting Department upon receipt of the notice of assessment from the DTBNBFI of the BSP Supervision and Examination Sector.
- Where an NBQB’s deposit account is insufficient, the BSP Accounting Department bills the NBQB for the full annual fee or the balance not covered.
- The NBQB must remit the amount within thirty days from receipt of the bill, and failure to pay within the prescribed period subjects the NBQB to administrative sanctions.
Signatory and adoption
- The circular is signed by (SGD.) GABRIEL C. SINGSON, Governor.