Title
Amendments to BSP Bank Regulations MORB/MORNBFI
Law
Circular No. 890
Decision Date
Nov 12, 2015
Monetary Board Resolution No. 1541 introduces amendments to the Manual of Regulations for Banks and Non-Bank Financial Institutions, updating provisions on currency handling, cross-border financial reporting, and microinsurance product marketing to enhance regulatory consistency and financial stability.
A

Reporting on Cross-Border Financial Positions

  • Circular No. 850 provisions regarding banks' cross-border financial positions are assigned new subsections and appendices in MORB.
  • Guidelines on completion of such reports help in regulatory compliance and supervisory monitoring.

Framework for Domestic Systemically Important Banks (D-SIBs)

  • Circular No. 856 attachment appended to the MORB/MORNBFI.
  • Provides implementing guidelines under Basel III for dealing with D-SIBs.
  • References to these guidelines are added in relevant subsections.

EMV Implementation Guidelines

  • Circular No. 859’s attachment regarding Europay, MasterCard, and Visa (EMV) implementation is appended to MORB.
  • Ensures bank compliance with security standards for electronic payments.
  • Relevant subsection updated to include reference.

Qualification and Accreditation for PERA Market Participants

  • Circular No. 860 sets guidelines for qualification, accreditation, application process, security for administrators, grounds for suspension/revocation, penalties, and reporting requirements for Personal Equity and Retirement Account (PERA) market participants.
  • New sections/subsections added to MORB and MORNBFI.

Renumbering of Circular References

  • Circular references updated and renumbered for consistency in MORB/MORNBFI.
  • This includes various subsections and appendices related to bank regulation.

Transitory Provisions and Expired Footnotes

  • Transitory provisions from various circulars are footnoted in relevant MORB/MORNBFI sections.
  • Some expired provisions transferred as footnotes.

Incorporation of Memoranda to Banks

  • Several memoranda are incorporated to update MORB/MORNBFI sections, subsections, and appendices.
  • These include guidelines and instructions across multiple areas of bank operation.

Modifications to Real Estate Loan Limits and Stress Tests

  • Limits on real estate loans for Universal Banks (UBs) and Kabuhayan Banks (KBs) set at 20% of total loan portfolio excluding interbank loans.
  • Real estate exposures covered include residential/commercial loans, investments in debt and equity securities of related entities.
  • Exclusions for infrastructure projects clarified.
  • Similar limits and stress test procedures specified for Thrift Banks (TBs).

Marketing, Sale, and Servicing of Microinsurance Products by Banks

  • Thrifts Banks (TBs), Rural Banks (RBs), and Cooperative Banks permitted to market and sell microinsurance products approved by the Insurance Commission.
  • Banks must have appropriate licenses and meet training and certification requirements.
  • Changes in bank articles of incorporation required to include microinsurance agency as a secondary purpose.
  • Security procedures and customer protection protocols mandated for manual initiated fund transfer transactions.

Deletion and Reference Changes Related to Capital Adequacy Framework

  • Section X116 and its subsections and Appendix 63a of MORB are deleted.
  • Related references changed to align with the existing capital adequacy framework.
  • Modifications affect public issuance, accounting treatment, disclosures, large exposures, loan classifications, and other regulatory guidelines.

Correction in Terminology

  • In Circular No. 855, the term "issued" in a subsection is corrected to "used" for accuracy and consistency.

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