FINANCIAL INSTITUTIONS are required to submit monthly reports on their credit and equity exposures starting July as the Bangko Sentral ng Pilipinas (BSP) seeks to boost its surveillance of the financial system.
The BSP is now implementing the Enhanced Comprehensive Credit and Equity Exposures Report of 2023 (COCREE 2.0), it said in a memorandum dated June 19.
“As practiced, COCREE 2.0 shall be submitted monthly through the BSP Relationship Management System (BRMS)–COCREE 2.0 Live Module,” it said.
Under the new reporting system, banks are required to submit the monthly reports 25 business days after the reference period. With its official rollout, the BSP set adjusted deadlines for the reports covering April, May, June, July and August. The deadline will revert to the regular deadline for reports covering September and onwards.
The BSP will begin imposing penalties for reporting violations starting September, while the prior months will serve as an adjustment period for BSFIs.
“Only BSFIs that are actively engaged in submitting COCREE 2.0 through the BRMS-COCREE 2.0 Live Module shall be eligible for the grace period,” the central bank said.
COCREE 2.0 covers universal and commercial banks (U/KBs), thrift banks, rural banks, cooperative banks, digital banks, nonbank financial institutions with quasi-banking functions (NBQB), and trust corporations. The 2021 COCREE only covered U/KBs and their subsidiaries, as well as digital banks.
The COCREE is a collection of credit and equity exposures from BSFIs and forms part of the central bank’s surveillance of emerging risks in supervised entities and the financial system.
The report compiles a monthly average of 31.7 million records, the BSP earlier said. This is composed of granular borrower demographics (11.3 million records) and credit and equity exposure details (20.4 million records), which account for about 95% of the outstanding loan portfolio of the banking system.
“All credit and equity exposures, except written-off accounts with nominal value, are required to be reported in the COCREE. This allows the BSP to conduct an in-depth analysis of borrower performance and behavior, including the portfolio of retail consumers and micro and small borrowers,” it said.
The enhanced reporting system is designed to capture granular information on borrowers and counterparties by addressing critical data gaps, it added. — AMCS
