Featured Product

    BSP Issues Multiple Updates for Financial Institutions in March 2022

    March 28, 2022

    The Bangko Sentral ng Pilipinas (BSP) published updates on the digital marketplace model, prudential reporting framework for Islamic banks and banking units, knowledge exchange program on central bank digital currencies (CBDC), and management of cyber risk. BSP also amended the guidelines on computation of minimum required capital and risk-based capital adequacy ratio as well as the amendments to regulations on information technology risk management.

    Below are the key highlights of these recent updates from BSP:

    • BSP is crafting rules that will allow covered banks and electronic money issuers to establish a digital marketplace whereby they can partner with financial service providers to develop and offer a wide array of financial products and services to consumers under a one-stop-shop platform. The financial products or services to be offered include retail loan products, other retail financial products, retail insurance products, collective investment schemes or pooled investment funds, and other financial products or services as may be authorized by the Monetary Board. 
    • BSP approved the prudential reporting framework for Islamic banks and Islamic banking units. The reporting framework sets out the accounting treatment of common Islamic banking arrangements as well as guidelines on how selected accounts of Islamic banks and Islamic banking units will be mapped onto the financial statements for prudential reporting purposes. An observation period on the submission of the reports of Islamic banks and Islamic banking units will commence from the reporting period of end of June 2022 until December 31, 2023, with full implementation on March 31, 2024.
    • ​BSP and the Alliance for Financial Inclusion jointly hosted the knowledge-exchange program, which examined the potential and impact of CBDC on financial inclusion and looked at the various design considerations and implementation challenges, including the underlying technology. The BSP Governor highlighted that, as a next step, BSP targets to roll-out in the near term, a pilot CBDC implementation called Project CBDCPh. The project aims to build organizational capacity and hands-on knowledge of key aspects of CBDC that are relevant for a use case around addressing frictions in the national payment system.
    • BSP is developing a Financial Services Cyber Resilience Plan, which will serve as the primary framework for strategies to strengthen cyber resilience in the financial services industry. BSP is also developing the Advanced Supervisory Technology Engine for Risk-Based Compliance or ASTERisC that will streamline and automate regulatory supervision as well as reporting and compliance assessment of BSP supervised financial institutions cybersecurity risk management.
    • BSP published a circular on amendments to the guidelines on the computation of minimum required capital and risk-based capital adequacy ratio. The key amendments are related to definition of capital, provisions on qualifying capital, regulatory adjustment to common equity tier 1 (CET1) capital, and credit risk-weighted assets. The circular shall take effect fifteen calendar days after its publication either in the Official Gazette or in a newspaper of general circulation.
    • BSP published a circular on amendments to regulations on information technology risk management. The amendments incorporate requirements on the adoption of robust fraud management systems and reinforced consumer education and awareness programs to the Manual of Regulations for Banks (MORB) and the Manual of Regulations for non-bank financial institutions. These amendments aim to strengthen cybersecurity posture and minimize losses arising from fraud and cybercriminal activities. This circular shall take effect fifteen calendar days following its publication either in the Official Gazette or any newspaper of general circulation.

     

    Related Links

     

    Keywords: Asia Pacific, Philippines, Banking, Digital Marketplace, Islamic Banking, CBDC, Regulatory Capital, Basel, Reporting, Cyber Risk, Regtech, Suptech, Guidelines, BSP, Lending, Platform Businesses, Subheadline

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets

    The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8292