Major Accomplishments of the Chamber of Thrift Banks

  • Accreditation of Thrift Banks in the British Embassy’s Bank Certification Verification System (BCVS), a mechanism by which the Embassy can verify or validate via electronic mode the authenticity of the Bank Certification issued by the banks to their depositors for visa application purposes.
  • Accreditation of CTB member-banks in BAP-CB’s Online Loandex Information Exchange System
  • Grant of BSP authority for RBUs of TBs to invest in readily marketable foreign currency-denominated debt instruments
  • Grant of BSP authority for TBs to engage in FX swaps and forwards transactions to fund purchases of foreign currency denominated instruments
  • Successful conduct of CTB training program on Compliance Function in Banks (which benefited 56 participants from 29 member-banks) and Risk Management & Audit (which benefited 70 participants from 30 thrift-banks).


  • Grant of BSP authority to issue Foreign L/Cs (for qualified TBs)
  • Liberalization of BSP Rediscounting Guidelines (deletion of JSS req)
  • Deletion of proposed increased assessment on banks in PDIC bill


  • Played a key role in the passage of the Credit Information System Act (CISA)
  • Extension of the exemption of micro and small-enterprise loans from the required submission of ITR/AFS
  • Longer period for submission by banks to AMLC of Covered and Suspicious Transaction Reports
  • Reduction to one (from two) of AMLC ID requirement
  • Introduced legislation on Free Patent
  • Issuance by the Supreme Court of Administrative Matter No. 99-10-05 as a means of addressing industry’s concern on indiscriminate issuance of TROs


  • Grant of BSP authority for TBs to engage in derivatives activities
  • FCDU authority to include investments in long-dated marketable securities
  • Reduction of the minimum capital requirement for TBs to operate an FCDU
  • Grant of authority for all TBs to engage in limited trust business


  • Retention of GRT on banks’ income from lending activities at 5% and 1% (instead of the proposed 7% and 3%)
  • Advocated lifting by the BSP of moratorium on bank branching/liberalized branching policy
  • Exemption of loans to small enterprises from the required submission of ITR/AFS, giving them 2 years within which to comply
  • Joint venture arrangements with real estate developers to hasten disposal of ROPOAs


  • Training program on Operational Risks to prepare member-banks for BASEL II

    Internal credit risk rating system for thrift banks


  • Access by member-banks to BAP’s Negative File Information System
  • Supported the increase in the maximum deposit insurance coverage from P100,000 to P250,000.


  • Staggered booking of losses arising from the discounted sale of NPAs to an SPV
  • Sales of ROPOA covered by SCRs excluded from automatic classification as NPAs
  • Passage of RA No. 9238, exempting FIs’ transactions from VAT and reverting banks to GRT
  • Accreditation of qualified TBs as collection agents for the BIR
  • 12-point accreditation program for wholesale lending programs of various GFIs


  • TBs’ Eligibility for rediscounting under BSP’s rediscounting facility for microfinance
  • ROPOAs made part of compliance to the required 75% loans to deposit ratio
  • Increase in loan value for home mortgages to 80% if loan is fully guaranteed by appropriate government agency
  • “Front-end system” connecting TBs to the PPS/RTGS at an affordable cost


  • Drafted the Risk Manual for TBs (endorsed by BSP)
  • Redefinition of SMEs by increasing the ceiling for the definition of ‘medium’ enterprises from P60 M to P100 M
  • Lifting of a presidential directive suspending the granting of government guarantee on SME loans
  • Allowing the capitalization of capital gains tax and DST on ROPOAs without requiring BSP accredited independent external appraiser for ROPOAs not exceeding P1 million


  • Restoring the level of thrift banks’ liquidity reserve requirements on deposits and deposit substitutes to its former level of 2% (instead of 4% and 5% per BSP Cir. 260 and 262)


  • Made possible TBs’ subscription to Pag-Ibig bonds as alternative compliance to agri-agra lending
  • Part of the BSP-Banking Industry Y2K Task Force


  • Adoption of CTB Code of Ethics
  • Drafted the Compliance System for TBs (in collaboration with BSP)


  • BSP authority for TBs to accept government deposits (BSP Circ. 110)
  • BSP-CTB collaboration on BSP’s three-volume manual of GL/SL Reporting Scheme for Thrift Banks.
  • BSP Rediscounting window for SMEs with higher limits in banks’ participation at lower interest rates
  • Retention of the sector’s exemption from the payment of GRT under the CTRP


  • Passage of the Thrift Banks Act (R.A. 7906)