Law Summary
Amendments to the Manual of Accounts (MOA)
- The MOA under Subsection X191.2 of the MORB is amended to explicitly include Motor Vehicle Loans under Loans and Receivables-Others.
- Detailed classification under Loans to Individuals Primarily for Personal Use includes:
- Credit Card loans
- Motor Vehicle Loans (further divided into Auto Loans and Motorcycle Loans)
- Salary Loans
- Other personal and household loans (e.g., appliances, educational bills).
Revisions to Financial Reporting Package Templates
- Financial Reporting Package for Banks (FRP) and Simplified Financial Reporting Package for Rural and Cooperative Banks (SFRP) templates have been revised.
- A new line for Motor Vehicle Loans and its sub-accounts (Auto Loans and Motorcycle Loans) is added under Loans to Individuals Primarily for Personal Use Purposes.
- Specific schedules and annexes (Annex A-1 and A-2) reflect these changes to facilitate consistent reporting.
Amendments to the MORNBFI Reporting Templates
- Section 4162S of the MORNBFI revised to include motor vehicle loans classifications in reports of Non-Stock Savings and Loan Associations (NSSLAs):
- Consolidated Statement of Condition (CSOC) now displays separate lines for Motor Vehicle Loans, Auto Loans, and Motorcycle Loans under Loans and Discounts.
- Consolidated Statement of Income and Expenses (CSIE) includes lines for Interest/Discounts Earned from Motor Vehicle Loans and subcategories.
- Appendix N-1 related to Schedule of Loans/Receivables also updated to include outstanding balances and past due amounts for motor vehicle loan sub-accounts.
Implementation and Compliance
- Banks, NSSLAs, and Financing Companies are required to adopt the revised reporting templates starting with the report ending 30 June 2015.
Effectivity of the Circular
- The Circular takes effect fifteen (15) calendar days after publication in the Official Gazette or a newspaper of general circulation.
Summary of Important Legal Concepts
- Clear classification and reporting standardization of loans to individuals for personal use enhances regulatory oversight.
- Recognition of motor vehicle loans as a distinct category emphasizes their significance in financial reporting and risk assessment.
- Amendments ensure transparency and uniformity in the loan portfolio disclosure among financial institutions subject to BSP supervision.