MANILA, 27 June 2017 - Penalties and sanctions have been approved by the Monetary Board if banks will fail to submit required reports regarding their lending activities and other bank operations, says Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla Jr. According to BSP, data from these reports are significant for it serves as the foundation of policy-making for the institution.

New Circular Coverage

The new circular which covers both big and small lenders contains sanctions and penalties for bank officers and board of directors that will fail to submit the required reports on time.

According to BSP Deputy Governor Espenilla, official/s that shall be found the cause of 'persistent' and 'intentional' late submission of reports to the BSP may be suspended or disqualified from holding any other position in any bank.

Some data from these records that BSP deems vital for policy making are approved loans, deposit base, capitalization, and corporate governance rules. Such information is assessed thoroughly to avoid potential banking system risks.

Mr. Espenilla said that "There are many banks who submit late. I guess there are some banks who don’t appreciate the importance of the data, while others are really challenged to produce high-quality data. Others feel they can just pay the penalty."