BSP Memorandum

February 20, 2004 BSP MEMORANDUM TO : All Thrift Banks To implement the Subsidiary Ledger (SL) Reporting System as prescribed under item 4 of Circular 270 dated December 19, 2000, as amended by Circular Letter dated July 9, 2002, all thrift banks shall comply with the following guidelines: 1. Implementation of the Subsidiary Ledger (SL) Reporting shall be in two phases a. Phase 1 This phase shall include the following changes/adjustments: 1. Revisions in the existing SLs by including data elements appearing in the different Schedules of the monthly Consolidated Statement of Condition not disclosed in the original SL; 2. Updates in the SLs' data structures based on these revisions; cdabsp 3. Adoption on a group-wide basis of the level of data elements for Due from Other Banks, Head Offices/Branches and Agencies, Deposit Liabilities and Other Liabilities; 4. Integration of the existing Interbank Loans/Accounts Receivable Ledger's (IBLAR) data structure with the Loan Ledger's data structure; 5. Inclusion of the CREDEX report in the SL Reporting System; and 6. Retention of the existing format of Schedule 2F (Schedule of FCDU Other Assets and Other Liabilities From/To Non-Residents) b. Phase 2 This phase shall cover the inclusion of new data elements as a result of changes in policy/regulations issued by BSP after Circular 270. A separate memorandum shall be issued prior to the implementation of this phase. 2. The parallel testing of the Subsidiary Ledger (SL) Reporting System shall be carried out on a staggered basis, effective for reports as of February 29, 2004 for the initial ledger (Due From Other Banks/Head Offices/Branches and Agencies), and which shall be transmitted to Bangko Sentral ng Pilipinas (BSP) fifteen (15) banking days after end of reference month. Each subsidiary ledger shall undergo two months parallel testing and eventually go on live implementation after the two months parallel run. Parallel testing of subsequent ledgers shall follow with an interval of one month for each ledger, as scheduled below PARALLEL LIVE TESTING IMPLEMENTATION REPORT (covering reports as of) (covering reports as of) Due from other Banks/Head Office, Branches & Agencies February 2004 April 2004 Other Liabilities Ledger March 2004 May 2004 Deposit Liabilities/Due to Local Banks Ledger April 2004 June 2004 Bills Payable Ledger May 2004 July 2004 Contingent Accounts Ledger June 2004 August 2004 Equity Investment Ledger July 2004 September 2004 Investment Ledger August 2004 October 2004 Loan Ledger September 2004 November 2004 3. All thrift banks shall transmit the SL reports to SRSO using either the E-mail addresses [emailprotected] or [emailprotected] . Non-participation during the parallel test and transmission of erroneous SL reports during the live-run shall be subject to penalties for erroneous reporting. 4. SRSO shall run an official validation test on reports submitted. Banks shall be promptly advised on the validation results and shall be required to correct reports when necessary. 5. As a subsidiary ledger is fully implemented, the bank shall discontinue transmitting to the Supervisory Reports and Studies Office (SRSO) the pertinent Consolidated Statement of Condition (CSOC) schedules. Attached is the list of subsidiary ledgers and the related CSOC schedules (Annex 1). Similarly, other related independent reports such as the CREDEX shall also be discontinued when the Loan Ledger is fully implemented. 6. Attached as Annex 2 are the revised data structures of the SLs for your ready reference. IDAESH For strict compliance. (SGD.) NESTOR A. ESPENILLA, JR. Sector-in-Charge LIST OF SUBSIDIARY LEDGERS AND THE RELATED SCHEDULES SUBSIDIARY LEDGER SCHEDULE DESCRIPTION SCHEDULE NUMBER 1. Due from other Banks/ Heads Office, Branches and Agencies Schedule of Due from Other Banks 2A FCDU Indebtedness Among Philippine 2J Based Participating Banks Currency Classification of FCDU Funds 2H Classification of Interbank FCDU Funds 2I By Country 2. Loan Ledger Schedule of Loan Portfolio and Other Accommodations 2B Schedule of Loan Portfolio and Other Accommodations (Borrowings of Local Government Units) Schedule of Microfinance Program Report on Exposure to Real Estate Industry 2M Housing Loans Extended or Guaranteed under the Government's National Shelter Programs (NSP) such as the Expanded Housing Loan Program (EHLP) of the Home Development Mutual Fund and the Mortgage and Guaranty and Credit Insurance Program of the Home Insurance Guaranty Corporation 2M1 Report on Auto Loans and Credit Card Receivables 2N Computation of Compliance with Aggregate Ceiling on Direct/Indirect Credit Accommodation to Directors/Officers/Stockholders/ Related Interest (DOSRI) and Report of Unsecured Accommodations to Stockholders with less than 2% stockholdings for purposes of BSP Circular No. 3, Series of 1993 2P FCDU Indebtedness Among Philippine Based Participating Banks 2J FCDU Loans and Advances 2K Currency Classification of FCDU Funds 2H 3. Deposit Liabilities/Due to Local Banks Ledger Schedule of Deposit Liabilities Schedule of Deposit Liabilities 2D Time Deposits Classified by Maturity and by Interest Rate) Consolidated Report of Domestic Liabilities by Size of Accounts Schedule of Deposit of Banks and Due to Banks Schedule of Government Funds Held/Compliance with Liquidity Floor Requirement 2G Currency Classification of FCDU Funds 2H 4. Bills Payable Ledger Schedule of Bills Payable 2E Schedule of Bills Payable other than to Bangko Sentral Schedule of Government Funds Held/Compliance with Liquidity Floor Requirement 2G FCDU Indebtedness Among Philippine Based Participating Banks 2J Currency Classification of FCDU Funds 2H Classification of Interbank FCDU Funds By Country 2I 5. Investment Ledger Schedule of Trading Account Securities - Investments and Available for Sale Securities and Investments in Bonds and other Debt Instruments 2C Schedule of Trading Account Securities Investments and Available for Sale Securities and Investments in Bonds and other Debt Instruments (Government Issue Local Government Units) 6. Equity Investment Ledger Schedule of Equity Investments in Allied Undertakings 2O Schedule of Equity investments in and Outstanding Loans to Allied Undertakings 7. Other Liabilities Ledger Schedule of Government Funds Held/Compliance with Liquidity Floor Requirement 2G Schedule of FCDU Other Assets and Other Liabilities From/To Non-Residents 2F Currency Classification of FCDU Funds 2H Classification of Interbank FCDU Funds By Country 2I 8. Contingent Accounts Foreign Exchange Swapped/Sold for Philippine Peso 2L Annex 1 - List of Subsidiary Ledgers and the Related Schedules Annex 2 - Data Structure