Law Summary

Overview of the Circular

This Circular, issued by the Monetary Board and effective from June 30, 1994, outlines the modifications to the reportorial requirements for Non-Stock Savings and Loan Associations (NSSLAs) as approved in Resolution No. 437 on May 13, 1994.

Changes in Reportorial Requirements

The Circular introduces significant alterations to the reporting obligations of NSSLAs, particularly those with total resources of P10 million or less.

1. Reports No Longer Required for Small NSSLAs

• Explanation: NSSLAs with total resources of P10 million or less are exempt from submitting certain reports.
• Key Details: • Annual Report of Management to Members
  • Consolidated Annual Financial Statements of NSSLAs and their Allied Undertakings/Affiliates/Subsidiaries, including individual financial statements of allied entities.

2. Deletion of Certain Report Types

• Explanation: Specific reports previously mandated for NSSLAs are now removed from the required list.
• Key Details: • Consolidated Report of Investments in Loans and Discounts (CBP 7-26-02.2H)
  • Certification as to the Last Number of Board Resolutions Adopted
  • Duplicate of Board of Directors Resolutions
  • Information required in Section 4161 N.a (now Section 4161 S.b) as an addendum to the Information Sheet.

3. Reports No Longer Required for All NSSLAs

• Explanation: Certain reports are eliminated from the requirements for all NSSLAs, regardless of their financial standing.
• Key Details: • Bio-Data and Information Sheet where no changes occur
  • Report on Crimes/Losses if the value does not exceed 0.5% of the NSSLA's net worth or P50,000, whichever is lower
  • Report of Discrepancies of Accounts where discrepancies are less than 1% of the NSSLA's net worth or P100,000, whichever is lower.

Effective Date

• Timeframe: The changes outlined in this Circular take effect on June 30, 1994.

Key Takeaways

• The BSP Circular No. 25, s. 1994 significantly reduces the reporting burden on smaller NSSLAs by eliminating several reports.
• NSSLAs with total resources of P10 million or less are exempt from filing various annual management and financial reports.
• Certain reports are completely removed from the reporting requirements for all NSSLAs, streamlining compliance obligations.
• The effective date for these changes is set as June 30, 1994, necessitating prompt adherence by the affected entities.