Conscious Investing Today
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
Conscious Investing Today
No Result
View All Result
Home Politics News

BSP wants too-big-to-fail banks to submit separate recovery plan

by
April 20, 2021
in Politics News
0
BSP wants too-big-to-fail banks to submit separate recovery plan
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT
REUTERS

By Luz Wendy T. Noble, Reporter

THE Bangko Sentral ng Pilipinas (BSP) is requiring too-big-too-fail banks to submit a separate recovery plan annually starting 2022, a move seen giving the regulator a more focused assessment of a lender’s plans to bounce back from a crisis.

“The Bangko Sentral shall review the recovery plan as part of the overall supervisory process for domestic systemically important banks (D-SIBs), focusing on assessing the recovery plan’s robustness, credibility, and ability to be effectively implemented,” BSP Governor Benjamin E. Diokno said in Circular No. 1113.

Previously, central bank regulations only required D-SIBs to submit an Internal Capital Adequacy Assessment Process (ICAAP) document, which includes the recovery plan, annually every March 31.

“This [circular] merely segregates the recovery plan and to be submitted separately from the ICAAP document,” BSP Deputy Governor Chuchi G. Fonacier said in a text message, saying the move will provide for “more focus” on each requirement.

The central bank does not disclose which particular banks are considered “too big to fail.” However, it noted a lender will fall under a D-SIB category, if in event of its collapse or distress, the impact could spill over to the financial system and the economy.

The separate submission of the ICAAP and the recovery plan will align BSP supervision with international standards, according to BSP Managing Director for Policy and Specialized Supervision Lyn I. Javier.

“These are two different documents that serve distinct purposes. The separation of said documents would also facilitate the BSP’s assessment of the recovery plan especially in times of crisis on an institutional level and across D-SIBs,” Ms. Javier said in a Viber message.

Moving forward, she said the separate recovery plan submission will hold even in normal times.

Starting next year, the central bank will require the submission of the separate ICAAP documents and recovery plans of financial institutions every June 30.

Ms. Javier explained that under the new scheme, the ICAAP will focus on maintaining the continuity of a bank’s operations.

ADVERTISEMENT

“It should contain the bank’s assessment of the adequacy of its capital considering all material risks to which it is exposed both in business-as-usual and stressed scenarios,” she said.

Meanwhile, the recovery plan is expected to “contain measures that should be taken if the bank’s financial condition deteriorates to bring it to a safe and sound condition again,” Ms Javier said.

Based on the circular, this should include specific initiatives appropriate to the bank’s risk profile such as capital raising activities, streamlining of businesses and restructuring, as well as disposal of assets to improve capital position.

“D-SIBs should also relate their recovery plan not only with ICAAP but also with the liquidity assessment and various contingency plans,” she added.

Bankers Association of the Philippines President Jose Arnulfo “Wick” A. Veloso welcomed the amendments to the existing rules on too-big-too-fail banks.

“The new BSP regulation further recognizes the critical role D-SIBs play in ensuring long-term favorable condition post-COVID-19 pandemic by strengthening its efforts in monitoring and ensuring financial stability of the banking system,” Mr. Veloso said in a statement sent to BusinessWorld.

“The BAP will continue to collaborate with the BSP on efforts that will help our country move towards economic recovery,” he added.

Despite the impact of the pandemic, Ms. Fonacier has said the banking system remains guarded with adequate capital, liquidity buffers and ample loan reserves. She said the industry’s capital adequacy ratios both on solo and consolidated bases are well above the minimum threshold of 10% set by the BSP.

Related Posts

SEC warns public vs investing in three entities
Politics News

SEC warns public vs investing in three entities

June 26, 2022
SSC outlasts Perpetual Help in 5 sets, shares second spot
Politics News

SSC outlasts Perpetual Help in 5 sets, shares second spot

June 26, 2022
First Philippine Overland Expedition boasts P1-M kitty
Politics News

First Philippine Overland Expedition boasts P1-M kitty

June 26, 2022
Next Post
Chauvin convicted of murdering George Floyd in landmark US racial justice case

Chauvin convicted of murdering George Floyd in landmark US racial justice case

Suzuki rolls out hot new promos for the month of April

Suzuki rolls out hot new promos for the month of April

How to work from home efficiently and comfortably during summer

How to work from home efficiently and comfortably during summer

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Categories

  • Economic Indicators
  • Editor's Pick
  • Investing Ideas
  • Politics News
  • Stock Analysis

Popular News

  • A Minute With: Family Reunion cast on relatable story lines

    A Minute With: Family Reunion cast on relatable story lines

    0 shares
    Share 0 Tweet 0
  • Twitter launches ‘Milk Tea Alliance’ emoji as movement grows

    0 shares
    Share 0 Tweet 0
  • Gas and car bills to soar under green revolution

    0 shares
    Share 0 Tweet 0
  • Level up your gaming experience with vivo Y20s [G]

    0 shares
    Share 0 Tweet 0
  • Rehab, expansion of General Santos airport seen completed by Q2

    0 shares
    Share 0 Tweet 0
No Result
View All Result

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Highlights

Chery Auto Philippines hits record sales in April, sells out Tiggo 8 Pro

Quizon remains Philippine rapid chess king in third straight time

Maserati electrifies its best-selling SUV

Next DICT chief cool to lowering spectrum user fees

Weak peso to further bloat PHL debt stock

Business groups bare wish list for Marcos’ first hundred days

Trending

SEC warns public vs investing in three entities
Politics News

SEC warns public vs investing in three entities

by
June 26, 2022
0

THE Securities and Exchange Commission (SEC) has warned the public against investing in three unregistered entities that...

SSC outlasts Perpetual Help in 5 sets, shares second spot

SSC outlasts Perpetual Help in 5 sets, shares second spot

June 26, 2022
First Philippine Overland Expedition boasts P1-M kitty

First Philippine Overland Expedition boasts P1-M kitty

June 26, 2022
Chery Auto Philippines hits record sales in April, sells out Tiggo 8 Pro

Chery Auto Philippines hits record sales in April, sells out Tiggo 8 Pro

June 26, 2022
Quizon remains Philippine rapid chess king in third straight time

Quizon remains Philippine rapid chess king in third straight time

June 26, 2022

Disclaimer: ConsciousInvestingToday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2021 ConsciousInvestingToday. All Rights Reserved.

No Result
View All Result
  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.