BSP looks to expand banks’ credit reporting

The central bank is looking to implement the Comprehensive Credit and Equity Exposures Report (COCREE) among all lenders by next year.

The Bangko Sentral ng Pilipinas said in a proposed circular that the COCREE will cover universal and commercial banks (U/KBs), thrift banks, rural banks, cooperative banks, nonbank financial institutions with quasi-banking functions (NBQB), trust corporations, as well as digital banks.

The latest version of the reporting requirement will be referred to as COCREE 2.0. The 2021 COCREE only covered U/KBs and their subsidiaries, as well as digital banks.

The central bank is also looking to expand its data requirements to strengthen its surveillance and analysis of emerging risks in the financial system.

The draft circular will amend section 173 of the Manual of Regulations for Banks and section 172-Q of the Manual of Regulations for Non-Bank Financial Institutions.

Stakeholders are given until Sept. 19 to submit feedback on the draft circular to the BSP.

“The Comprehensive Credit and Equity Exposures Report (COCREE) is designed to capture granular borrower/counterparty information for all credit and equity exposures of BSP-Supervised Financial Institutions (BSFIs),” the central bank said.

U/KBs, their subsidiaries, and digital banks are expected to comply with the enhanced credit reporting system starting January 2024.

Standalone thrift banks, NBQBs, and trust corporations will use COCREE 2.0 in February next year, while rural and cooperative lenders will adopt the reporting standard by March 2024.

The COCREE 2.0 will be electronically submitted by banks monthly, within 15 banking days after the end of the reference month.

“The electronic submission of the COCREE 2.0 shall conform with the prescribed submission procedures and guidelines covering the required format structure, line-item instructions, validation rules and appropriate technology for reporting, among others,” the BSP said.

The COCREE 2.0 will also be considered a category A-1 report.

The central bank said BSFIs can test the submission of the COCREE 2.0 by the fourth quarter to prepare for the live implementation in 2024.

Penalties for reporting violations will not be imposed during the pilot, but it will be strictly enforced after the grace period following the live implementation.

The 2021 COCREE will no longer be used upon live implementation of the COCREE 2.0. — K.B. Ta-asan