Quarterly Report on Credit and Equity Exposures to Individuals/Companies/Groups Aggregating P1 Million & Above

August 6, 2003 BSP CIRCULAR LETTER TO : All Universal Banks (UBS), Commercial Banks (KBS), Islamic Banks (IBs) and Thrift Banks (TBs) All Non-Bank Financial Institutions With Quasi-Banking Functions (NBQBs), Investment Houses (IHs) With Trust Functions and All Other Non-Bank Financial Institutions (NBFIs) Which are Subsidiaries or Affiliates of UBS, KBS, IBS, TBS or NBQBS SUBJECT : Quarterly Report on Credit and Equity Exposures to Individuals/Companies/Groups Aggregating P1 Million & Above Effective 30 September 2003, the Quarterly Report on Credit and Equity Exposures to Individuals/Companies/Groups Aggregating 1 Million and Above (BSP-7-16-32A for UBs, KBs and IBs, TB Form 15 for TBs, BSP-7-26-24 for NBQBs, IHs and NBFIs) is revised to rationalize and enhance the data structure requirements. The prescribed filenames for submission are the following: FILE DESCRIPTIONS FILENAME 1. LOANS and RECEIVABLES FORM1.dbf 2. INVESTMENTS FORM2.dbf 3. EQUITY HOLDINGS FORM3.dbf 4. SELECTED CONTINGENT ACCOUNTS FORM4.dbf 5. SPECIFIC ALLOWANCE FOR PROBABLE LOSSES & LOANS/INVESTMENTS CLASSIFICATION FORM5.dbf 6. SELECTED BALANCE SHEET & INCOME STATEMENT ACCOUNTS OF THE FORM6.dbf LATEST AUDITED FINANCIAL STATEMENTS (AFS) The additional forms/fields and changes in the field names of the data structure are as follows: A. FORM1 LOANS and RECEIVABLES 1. Additional fields: DESCRIPTIONS FIELDNAME 1. Borrower's Relationship to the Lending Bank RELATION 2. Loan Status Code STATCODE 3 Non-Performing Loans (NPL) Status Code NPLICODE 4 Guarantee Deposit GUARDEP 5 Code for Leased Type LEASETYP 2. Changes in field names: DESCRIPTIONS FROM TO 1. Code of Original Currency CURRCDE CURR 2. Latest Appraised Value of Security SECAPAMT APPRSVAL 3. Latest Appraisal Date of Security SECAPDTE APPRSDTE B. FORM2 INVESTMENTS 1. Additional fields: DESCRIPTIONS FIELDNAME 1. Issuer Type Code BORRTYPE 2. Investments Status Code STATCODE 3. Non-Performing Investments (NPI) Status Code NPLICODE 4. Amount Secured AMTSEC 5 Security Code SECCODE 6. Latest Appraised Value of Security APPRSVAL 7. Latest Appraisal Date of Security APPRSDTE 8. Amount Unsecured AMTUNSEC 2. Changes in field names: DESCRIPTIONS FROM TO 1. Investments Type Code DEBTYPE INVCODE 2. Code of Original Currency CURRCDE CURR C. FORM3 EQUITY HOLDINGS 1. The Code of Original Currency revised from CURRCDE to CURR. 2. Investment type code (INVTYPE) is added to indicate whether the undertaking is allied financial, allied non-financial or non-allied. D. FORM4 SELECTED CONTINGENT ACCOUNTS 1. Additional fields: DESCRIPTIONS FIELDNAME 1. Amount Availed in Peso/Peso Equivalent AMTPESO 2. Amount Availed in US Dollar AMTDOLR 3. Amount Availed in Original Currency AMTORIG 4. Notional Amount in Peso/Peso Equivalent DRVPESO 5 Notional Amount in US Dollar DRVDOLR 6. Notional Amount in Original Currency DRVORIG 7. DOSRI Indicator Code DOSRIND 2. Changes in field names: DESCRIPTIONS FROM TO 1. Selected Contingent Accounts LCTYPE CONTYPE Type Code 2. Code of Original Currency CURRCDE CURR 3. Security Code SECCODE SECURITY 4. Latest Appraised Value of Security SECAPAMT APPRSVAL 5 Latest Appraisal Date of Security SECAPDTE APPRSDTE Additional database files to facilitate information on 1. FORM5 Specific Allowance for Probable Losses and Loans/Investments Classification; and 2. FORM6 Selected Balance Sheet & Income Statement Accounts on the Latest Available Audited Financial Statements (AFS) of each borrower/issuer. Attached for your ready reference are the revised formats of the following: 1. Instructions for the accomplishment of the report ( Annex A ); 2. Notarized Control Proof Lists ( Annex B ) to be submitted to Supervisory Reports and Studies Office ( SRSO ), Bangko Sentral ng Pilipinas; and 3. Prescribed data structure format ( Annex C ) to be submitted thru electronic form. To expedite implementation of the revised data structure attached as Annex D is the Mapping of Modifications . For the 30 September 2003 report, financial institutions shall submit the revised data structure (updated field names) with additional fields and files. However, for the 31 December 2003 report, the additional fields specifically data on the latest available Audited Financial Statements ( AFS ) of the borrowers will be mandatory . Hence, blank data field shall be regarded as invalid data and to be considered as erroneous report. In order to facilitate the revision of the report, a copy of database format shall be provided upon request. ECaSIT For questions/clarifications/requests, the following are the BSP's contact persons: Ms. Lynn R. Arellano (UBs, KBs and IBs) Mr. Vincent Jon S. Aguinaldo (TBs and NBFIs) at telephone numbers (trunk line) 524-7011 local 2679 and (direct line) 526-5613 . For compliance. (SGD.) ALBERTO V. REYES Deputy Governor ANNEX A INSTRUCTIONS FOR THE ACCOMPLISHMENT OF BSP 7-16-32A (UBs, KBs and IBs)/TB Form 15 (TBs)/BSP 7-26-24 (NBQBs, IHs & NBFIs) A. The report shall be accomplished quarterly by all Universal Banks (UBs), Commercial Banks (KBs), Islamic Banks (IBs), Thrift Banks (TBs), Non-Bank Financial Institutions with Quasi-Banking Functions (NBQBs), Investment Houses (IHs) with trust functions, and Non-Bank Financial Institutions (NBFIs) which are subsidiaries and affiliates of UBs, KBs, IBs, TBs, and NBQBs. B. Each reporting institution with or without exposure are required to submit a notarized control prooflist ( Annex B ) duly signed by the authorized officer to the Supervisory Reports and Studies Office ( SRSO ), Bangko Sentral ng Pilipinas. Institutions transmitting via cc:mail/lotus notes or internet shall likewise fax (fax #523-3461) the notarized control prooflist to SRSO. Indicate in the control prooflist the phrase "not applicable" if there is nothing to report on any or all of FORM 1 to FORM6. Refer to Annex B-1 for sample formats. C. The report shall be submitted to the SRSO not later than 15 banking/business days from the end of the reference quarter. D. The report shall be submitted electronically (via cc:mail/lotus notes or internet) or in diskette media. The diskettes shall be property labeled as to name of reporting institution and reference date. E. This is a category A-2 report. Late submission of reports shall be subject to the appropriate penalty prescribed under Subsection X162.2 of the Manual of Regulations (MOR) for Banks and Subsections 4162Q.3 and 4162N.3 of the MOR for Non-Banks. F. This is a consolidated report, i.e., head office and all its branches, agencies, etc., taken as a unit. The Trust Department/Investment Management Department shall accomplish a similar report, to be merged/appended to the consolidated report of the bank proper. G. The exposures of the Trust Department/Investment Management Department, in their capacity as trustee, fund manager, securities dealer/broker, or agent, must be included in the computation of the total exposures to an individual or company or to a group of individuals/companies. H. The report must show the actual data as of end of reference quarter as reflected in the records of the institution. I. This report will be used as basis for computer processing. Care should therefore be exercised towards accuracy of entries, avoiding alterations or modifications of the file names, and data structure, i.e., field names, field lengths and field types. Any alterations or modifications in the file names or data structures shall be construed as an erroneous report and shall be subject to the appropriate penalty. J. This report shall include all credit accommodations and investments in debt and equity securities held by the financial institution to an individual/company or to a group of individuals/companies, when such credit and equity exposures aggregate to P1 million or more. K. The P1 million exposure benchmark refers to the total exposure of the financial institution in the form of local or foreign currency denominated loans and receivables ( Form 1 ), investments ( Form 2 ), equity holdings ( Form 3 ) and selected contingent accounts ( Form 4 ). Specific allowance for probable losses set up/booked by the financial institution and loans/investments classification ( Form 5 ) and selected balance sheet and income statement accounts ( Form 6 ) pertain to borrowers in FORM 1 and Issuers in Form 2 . L. For institutions with borrowers with various types of loans, even if a single loan is less than P1 million but the aggregate exposure is P1 million or more, such exposure shall be included in the report. M. The report shall include exposure of less than P1 million to an individual/company belonging to a group of individuals/companies if the total exposure to the same group aggregates to P1 million or more. N. Holding companies, subsidiaries, affiliates and sister companies shall be included in determining the group of companies. In addition, the reporting institution shall determine which individual/company shall be considered as belonging to a group based on its assessment of credit information when loans were granted or collateral business was considered. ACCOMPLISHMENT OF THE FORM A. All files must be submitted in a . dbf format using the prescribed data structure ( Annex C ) of this Circular Letter. B. All amounts should be in absolute value (do not round-off). At no time should the amounts be less than zero. C. Foreign currency-denominated lending and investments shall be revalued in accordance with the Guidelines on Revaluation. Past due accounts should be revalued if their translation at currency exchange rates will result in realizing foreign exchange losses (in case of a devaluing foreign currency). On the other hand, these accounts need not be revalued if the prevailing exchange rate becomes higher and translation thereof will result in realizing a profit. D. All entries must be in UPPER CASE. E. Borrower/issuer/entity/accountee/counter party should be entered as: 1. For individuals, separate by comma as in: SURNAME, FIRST NAME MIDDLE NAME 2. For institutions, DO NOT use abbreviations or acronyms; use SEC registered names. ANNEX E LIST OF CURRENCY CODES ARA Argentine Peso JPY Japanese Yen AUD Australian Dollar KRW Korean Won ATS Australian Schillings KWD Kuwait Dinar BHD Bahrain Dinar LUF Luxembourg BEF Belgian Franc MYR Malaysian Dollar BRE Brazilian Cruzeiro MXP Mexican Peso BRN Brunei Dollar NLG Netherland Guilder CAD Canadian Dollar NZD New Zealand Dollar DKK Danish Krone NOK Norwegian Krone DEM Deutsche Mark PKR Pakistan Rupee AED Dirham PHP Philippine Peso GBP Eng Pound Sterling PTE Portugal Escudo EUR Euro Currency SAR Saudi Rial ECU Euro Currency Unit SGD Singapore Dollar FIM Finland Markka ZAR South African Rand FRF French Franc ESP Spanish Peseta GRD Greece Drachma SEK Swedish Kroner HKD Hongkong Dollar CHF Swiss Franc INR Indian Rupee SYP Syrian Pound IDR Indonesian Rupiah TWD Taiwan Dollar IQD Iraq Dinar THB Thailand Baht ILE Irish USD US Dollar ITL Italian Lira VEB Venezuelan Bolivar