BSP expands bank credit risk reporting – Manila Bulletin

BSP expands bank credit exposure reporting

The pilot test of the new Comprehensive Credit and Equity Exposures (COCREE) report will be extended until August 31 this year to give large and medium-sized banks time to familiarize themselves with and comply with the reporting rules, the Bangko Sentral ng Pilipinas (BSP) announced.

COCREE is designed to capture granular borrower/counterparty information for all BSP (BSFI) supervised financial institution credit and equity exposures.

Memorandum No. M-2022-027 signed by BSP Deputy Governor Chuchi G. Fonacier on May 26, stated that the pilot tests will use test records that “fall anywhere within/between periods report from March 31, 2021 to June 30, 2022”.

BSP Deputy Governor Chuchi G. Fonacier

“BSFIs are strongly urged to take advantage of the opportunity to test the prescribed XML-COCREE reporting protocols and rules prior to its live implementation. Recordings submitted during the pilot phase are primarily for testing purposes only and cannot be considered a live submission,” Fonacier said.

Live implementation will begin with the June 30 reporting period. Submission is quarterly during the first four reporting quarters and will change to monthly starting with the April 30, 2023 reporting period, according to the memo.

Penalties for COCREE reporting violations will start on July 31 next year.

The COCREE report covers large banks or universal/commercial banks, savings banks, non-banking financial institutions with quasi-banking functions, subsidiaries of trust companies and digital banks. There will be different dates for quarterly submissions by banking sector. Covered banks are required to submit a COCREE report through the BSP Financial Institutions Portal.

The BSP first published the COCREE circular in December 2021. The report will improve the BSP’s monitoring of banks’ exposures to individuals, companies and groups and detect emerging risks that could harm the financial system.