The Bangko Sentral ng Pilipinas (BSP) has tightened the rules governing how banks submit prudential and regulatory reports.
Lenders are now required to adopt a governance framework that ensures the integrity, accuracy and timeliness of these filings.
Circular No. 1231, dated March 3, amends existing banking regulations to clarify the central bank’s expectations for reports it receives from lenders, including disclosures related to bank management, strategy, risk management and decision-making.
Examples include reports on banks’ capitalization, liquidity, stress testing and exposure to key sectors such as real estate and project finance.
The framework shifts the focus away from enumerating specific reporting violations —such as erroneous, delayed or missing submissions — and instead sought to provide clearer standards for what constitutes an acceptable report.
These include requirements for completeness, accuracy, timeliness and the ability of banks to adapt their reporting as supervisory needs evolve.
Failure to meet any of the criteria may subject a bank to sanctions.
Revised penalties
Among the key changes is a revised penalty structure that aligns fines with banks’ asset sizes to reflect their systemic importance and risk profile.
A bank with assets of up to P200 million could face a penalty of P600 for each day of noncompliance. Those with assets above P400 billion could be fined P10,000 per day.
The BSP also removed the previous classification of reports into Categories A-1, A-2, A-3 and B, as well as the distinction between primary and secondary reports, streamlining the reporting framework.mlining the reporting framework.
The circular likewise updates the rules on authorized signatories. Unless otherwise specified, all reports — whether submitted in hard copy or electronically — must be signed by the bank’s president or chief executive officer.
The authority to sign reports may also be delegated to certain senior officers, including an executive vice president, senior vice president, vice president, comptroller, chief accountant or other officers holding equivalent or higher positions.
Full implementation of the circular, including the new submission deadlines and the revised penalty structure, will take effect starting with reports covering the period ending June 30, 2026. (Ian Nicolas P. Cigaral Philippine Daily Inquirer)
