BSP Circular No. 850 (2014)

(NAR) VOL. 25 NO. 3 / JULY - SEPTEMBER 2014

[ BSP CIRCULAR NO. 850, September 08, 2014 ]

REPORT ON CROSS-BORDER FINANCIAL POSITIONS OF BANKS

Adopted: 08 September 2014 Date Filed: 29 September 2014 The Monetary Board, in its Resolution No. 1228 dated 7 August 2014, approved the issuance of the attached Report on Cross-Border Financial Positions. The Report on Cross-Border Financial Positions is designed to measure and monitor the cross-border financial claims and liabilities of universal and commercial banks (U/KBs) and their subsidiary thrift banks (TBs) to provide the BSP with a comprehensive view of potential financial risks and transmission channels emanating from foreign counterparties of Philippine banks. The following guidelines shall cover the submission of the Report: 1.Coverage All U/KBs and their subsidiary TBs shall submit the Report on Cross-Border Financial Positions on a solo basis in accordance with the Guidelines on the Completion of the Report (Annex A*). 2.Reportorial Requirements The Report on Cross-Border Financial Positions shall be considered a Category B report and shall be implemented in 2 phases:

a. Phase 1 - U/KBs and their subsidiary TBs shall submit an initial, one-time report on their total cross-border financial position according to geographic region/country and currency within 120 calendar days after the initial reference date of 30 September 2014 using the template in Annex B. b.Phase 2 - U/KBs and their subsidiary TBs shall submit a quarterly report on their cross-border financial positions which shall be categorized according to the sector of their non-resident counterparty within a country as defined in Annex A. A separate sheet shall be submitted for each sector using the template provided in Annex C. This sectoral report shall replace the initial report required under Phase 1 and shall be submitted within 30 banking days from end of reference quarter starting 31 March 2015. Appendix 6 of the MORB on the list of reports required of banks is hereby amended to include the Report on Cross-Border Financial Positions of Banks as follows:

A. UBs/KBsReport Report Title Frequency Submission Submission Category Deadline Procedure B Report on Cross- One-time Within 120 By electronic Border Financial calendar days mail to SDC Positions (Phase 1) from 30 SDCKB-RCBP@ September 2014 bsp.gov.ph B Report on Cross- 1/ Within 30 banking By electronic Quarterly Border Financial days from mail to SDC Positions end of reference SDCKB-RCBP@ quarter bsp.gov.ph B. TBs B Report on Cross- One Time Within 120 By electronic Border Financial calendar days mail to SDC Positions (Phase from 30 SDCKB-RCBP@ 2/ September 2014 bsp.gov.ph 1) B Report on Cross- 1/ Within 30 banking By electronic Quarterly Border Financial days from end of mail to SDC 2/ reference quarter SDCKB-RCBP@ Positions bsp.gov.ph 1/ Starting 31 March 2015 reference period 2/ For TBs which are subsidiaries of UBs and KBs 3.Late and/or erroneous reporting of the said report shall be subject to penalties prescribed under Subsection X192.2 of the Manual of Regulations for Banks (MORB) for Category B reports. 4.Mode and Manner of Submission Specific guidelines on the mode and manner of submission of the Report on Cross-Border Financial Positions in the Philippines shall be covered by a separate memorandum issuance. The Report on Cross-Border Financial Positions of Banks shall become effective starting with the 30 September 2014 quarter-end report for Phase 1 implementation and with the 31 March 2015 quarter-end report for Phase 2 implementation.

FOR THE MONETARY BOARD:

(SGD) DIWA C. GUINIGUNDO Officer-in-Charge