BSP Circular No. 745 - Write-off Reporting Rules

BSP Circular No. 745, s. 2011 amends the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) by revising Subsec. 4306Q.5 and Appendix Q-3.
BSP Circular No. 745, s. 2011 amends the Manual of Regulations for Banks (MORB) by revising Subsection X306.5 and Appendix 6.
The amendments specifically govern reporting requirements on the write-off of specified credit exposures and assets.

A Notice of write-off of loans, other credit accommodations, advances and other assets must be submitted in the prescribed form.
The Notice must be submitted to the appropriate department of the SES concerned.
The Notice must be submitted within thirty (30) business days after every write-off for the MORNBFI regime.
The Notice must be submitted within thirty (30) banking days after every write-off for the MORB regime.
The Notice must include a sworn statement signed by the President of the concerned institution, or an officer of equivalent rank, stating that the write-off did not include transactions with DOSRI.
The Notice must include a copy of the Board Resolution approving the write-off.

For non-bank financial institutions governed by the MORNBFI, the Notice/Application for Write-off must be submitted within thirty (30) business days after every write-off.
For banks governed by the MORB, the Notice/Application for Write-off must be submitted within thirty (30) banking days after every write-off.
Schedule 1 is revised for both manuals through the corresponding Appendix amendments to reflect the thirty (30)-day submission deadline after every write-off.

Write-offs of loans, other credit accommodations, advances and other assets are subject to verification during examination.

The sworn statement required with the Notice must be signed by the President of the QB (under the MORNBFI rules) or the President of the bank (under the MORB rules), or by an officer of equivalent rank.
The approval document required with the Notice is a Board Resolution approving the write-off.

Appendix Q-3 of the MORNBFI is amended to revise the deadline for submission of the Notice/Application for Write-off of Loans, Other Credit Accommodations, Advances and Other Assets to within thirty (30) business days after every write-off.
Appendix 6 of the MORB is amended to revise the deadline for submission of the Notice/Application for Write-off of Loans, Other Credit Accommodations, Advances and Other Assets to within thirty (30) banking days after every write-off.

Subsec. 4306Q.5 of the MORNBFI on write-off reporting is amended to include the specified reporting requirements, deadline, sworn statement, and Board Resolution copy, and to include verification during examination.
Subsection X306.5 of the MORB on write-off reporting is amended to include the specified reporting requirements, deadline, sworn statement, and Board Resolution copy.