BSP tightens grip on banks reporting

The Bangko Sentral ng Pilipinas (BSP) plans to overhaul its reporting governance framework by imposing higher penalties on banks based on their asset size for lapses in regulatory compliance.

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Instead of flagging reporting violations, the BSP is establishing clear criteria that banks should adhere to.

"The framework shifts focus from defining specific reporting violations—such as erroneous, delayed, or unsubmitted reports—to providing clear criteria for what constitutes an acceptable report which include completeness, accuracy, timeliness, and adaptability," the BSP said in a draft circular released this week.

"This change promotes a more proactive and quality-focused approach to regulatory compliance," the draft circular read.

As it stands, banks that fail to meet the reporting criteria will face sanctions for noncompliance. This time, however, the central bank will base penalties on banks' asset sizes instead of their categories.