April 15, 2019
Big banks have been given more time to comply with enhanced reporting of interest rates on loans and deposits to the central bank.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said its policymaking Monetary Board had approved the extension of a transitory period to the end of this year, with the effectivity date also moved to January 1, 2019.
“This extension provides more time for banks to assess their compliance with the enhanced reporting structure prior to full implementation,” the BSP said.
During the extended transitory period, universal/commercial banks are required to submit both existing and amended reports.
Amended reporting templates on bank interest rates on loans and deposits were ordered earlier this year via Circular 1029 dated January 25, 2019.
The original implementation date was March 1, 2019.
Big banks will have to disclose interest rates on actual loans granted and deposits generated as to product type, maturity period/terms, and size.
“The enhanced structure requires greater granularity on the data reported that is expected to contribute to enhanced monitoring and analysis of the Bangko Sentral as well as provide the public with more information in making decisions,” the central bank said.
It also noted that data on bank interest rates are regulary published on the BSP website.
“These will provide consumers with more valuable information to compare costs and evaluate their needs based on the best loans and deposits products available to them,” it added.
The compilation and publication of bank interest rates on loans and deposits, the BSP explained, are aligned with international best practices and also supports the central bank’s thrust to promote greater financial literacy, consumer protection and market transparency.
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