The Bangko Sentral ng Pilipinas (BSP) eyes amendments to its regulations to strengthen governance on prudential and regulatory reporting, according to a draft circular.
The BSP said in the circular that it is revising the reporting governance framework to clarify supervisory expectations for a bank’s board, senior management and oversight committees. The new framework sets clear criteria for reporting standards, focusing on a report’s completeness, accuracy, timeliness and adaptability.
It said banks that fail to meet any of these criteria could face sanctions. “This change promotes a more proactive and quality-focused approach to regulatory compliance,” the BSP said in its explanatory note.
A key change in the draft circular is the alignment of penalties with a bank’s asset size, with daily fines ranging from P1,000 for banks with assets up to P1 billion to P10,000 for those with assets over P400 billion.
Other proposed changes include removing the categorization of reports and the distinction between primary and secondary reports, modifying authorized signatories, and discontinuing notarization for reports unless required by law.
The amendments also propose to remove the entire habituality and demerit points section, with repeat violations to be tracked through supervisory dashboards. A new deadline is also introduced for some reports submitted in Extensible Mark-up Language (XML) via the Prudential Reporting Innovation and Monitoring Engine (PRIME).
The framework “encourages banks to pro-actively utilize BSP facilities during period of testing/parallel run to ensure accuracy in their reports upon live implementation,” the BSP said.
The draft circular is open for feedback until Sept. 30, 2025, according to the BSP’s website. Once effective, banks will have a six-month transition period to prepare their systems and processes. Sanctions for non-compliance will begin after this period.
