Major Accomplishments of the Chamber of Thrift Banks
Advocacy wins, regulatory milestones, and industry standards the Chamber has advanced for thrift banks since the mid-1990s.
50 milestones · 14 years chronicled
Recent highlights
Put together a Uniform Loan and Mortgage Agreement or ULAMA, a document that is now used by the industry for home buyers and mortgage lenders which sped up transactions, reduced legal risk, and promoted transparency. The Chamber of Thrift Banks (CTB) initiated and took the lead and collaborated with the Bankers Association of the Philippines (BAP) and the Bangko Sentral ng Pilipinas (BSP) on getting many parties to agree on a document acceptable to the industry.
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 Data Exchange’s Online Loandex System and Positive Data Sharing 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).
09
2009
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
08
2008
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
07
2007
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
06
2006
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
05
2005
Training program on Operational Risks to prepare member-banks for BASEL II
Internal credit risk rating system for thrift banks
04
2004
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.
03
2003
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
02
2002
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
01
2001
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
00
2000
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)
99
1999
Made possible TBs’ subscription to Pag-Ibig bonds as alternative compliance to agri-agra lending
Part of the BSP-Banking Industry Y2K Task Force
98
1998
Adoption of CTB Code of Ethics
Drafted the Compliance System for TBs (in collaboration with BSP)
97
1997
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
