The BSP recognizes that accurate and timely information from banks facilitates the proper conduct of monetary policy and effective banking supervision. Such quality information also enables banks to make better informed business decisions. In line with this, the Monetary Board approved the issuance of a Circular setting forth BSP's expectation on banks to establish an effective reporting system that will enable them to comply with the Bangko Sentral reporting standards.

Under the Circular, banks are expected to ensure that reports submitted to the BSP are complete, accurate, consistent, reliable and timely. This should be done independent of any validation process that the BSP may conduct prior to accepting a report as compliant with the standards. As such, an effective governance process over the bank's reporting system must be established by the bank's Board of Directors. These include written policies and procedures as well as defined processes for periodic review, enhancements, and reporting to its Board and Senior Management. This should be supported by a management information system and technology infrastructure that is commensurate to the bank's level of activity and complexity.

In cases of non-compliance with the reporting standards, the Circular has introduced a combination of enforcement actions that are intended to bring about an improvement in the bank's behavior. In addition to rationalizing the monetary penalties currently being imposed on banks, non-monetary sanctions for habitual incurrence of reporting violations as determined through a demerit system were also introduced. Formal corrective measures may also be required to be undertaken by the bank should there be significant deficiencies noted during the assessment of its reporting system.

Full implementation of the Circular will take effect beginning 1 January 2018. For the remaining months of 2017, banks are expected to make the necessary changes to their systems and processes to comply with the requirements of the Circular.

Source: Bangko Sentral ng Pilipinas (BSP)