Banks and their officials will face stiffer sanctions if they fail to submit on time important information required by Bangko Sentral ng Pilipinas.
Deputy Governor Nestor Espenilla Jr., who will succeed Governor Amando Tetangco Jr. on July 3, said the regulator would soon come out with a circular on reporting governance, which was already approved by the policy-making Monetary Board.
“There’s a new circular on reporting governance. It’s actually a very important circular. What it does is it lays down the framework for improved preparation and submission of supervision reports to the BSP by banks,” Espenilla told reporters in an interview.
“It makes it very clear whose responsibility it is all the way to the board to make sure that the data being submitted to the BSP is accurate and based on the requirements of the BSP,” Espenilla said, adding that the data mostly required serve as the foundation for policy making.
He said banks were obliged to report these information in a timely manner and they might be sanctioned if they continuously failed to meet the reporting timelines, which could also mean more sanctions.
“It basically strengthens the framework for high-quality data submission to the BSP. That’s going to be issued already, and that’s already approved by the MB,” Espenilla said.
Espenilla said a number of banks were usually late in submitting vital information required by BSP, saying those might be the lenders who did not appreciate the importance of the data, while others were really challenged to produce high-quality data.
“Others feel they can just pay the penalty. The penalty is small. This one [circular] basically means if you keep doing it, you’re not just looking at penalty but other kinds of sanctions including holding accountable the individual officers… they might be suspended or disqualified if it’s really persistent and seemingly intentional,” Espenilla said.