Regulatory Incentive for Early Adopters of the Standard Business Loan Application Form (SBLAF)

BANGKO SENTRAL I NG PILIPINAS OFFICE OF THE DEPUTY COVFRNOR FINANCIAL SUPERVISION SECTOR M EMORAN DU M No. M.2O24-OO4 To ALL BANKS AND THEIR SUBSIDIARv/ TTIuaTE FINANGING AND IEASING COMPANIES, BSP-SUPERVISED NON-BANK GOVERNMENT FINANCIAT TNSTTTUTTONS, FINANCTNG/LEAS|NG COMPANIES W|TH qUAS|-BANKING TICENSE THATARE NOTSUBSIDIARIES OF BANKS Subject Regulatory Incentive for EarlyAdopters of the Standard Business Loan Application Form (SBIAF) The Monetary Board, in its Flesolution No. 1690 dated 28 December 2023, approved the granting of regulatory incentive with the following guidelines for the early adoption of the SBLAF templates as provided in Circular No. ll56 dated 30 September 2022: 1. The regulatory incentive forearlyadoption by covered entities under Circular No. 1156 shall be in the form of a reduction in the annual superuisory fee (ASF) for each of the years 2O24 and 2O25. The reduction shall be equivalent to twenty percent (2A%ol of the assessed ASF or Two Million Pesos, whichever is lower. 2. Early adoption shall mean the full implementation of the SBLAF templates as stipulated in Circular No. 1156, by 28 October 2o231 or six months ahead of the start of the mandatory adoption on 28 April 2024. The SBLAF templates are deemed to have been fully implemented if the following conditions are met: a. The prescribed templates are exclusively used for all covered loan applications under Circular No. ll56; and b. The prescribed templates, in printed or electronic form, are accessible in all applicable channels (e.9., branches, offices, agents, online portals, apps) where borrowers may submit their covered loan applications. The submission of SBLAF reporting requirements as stipulated in Circular No. 1156 is not a condition for the early adoption, thus, the said report will be submitted in the same manner and submission deadline for those covered entities that have not early adopted. 3. To be eligible for the early adoption regulatory incentive, the President or an officer of equivalent rank, of the covered entity shall issue a certification (Annex A) attesting to the covered entity's full implementation of the SBLAF templates as described above. This certification will be submitted together with a certified true copy of the resolution of the covered entitys Board of Directors (or equivalent management committee in the case of foreign bank branches) on the grant of authority to its representative for the issuance of sworn statement attesting to the covered entity's full implementation of the SBLAF templates as described above. Circular No. ll56 was published on 13 Octobef 2022 at People's Journal and took effect on 28 October 2022 or15 calendar days after its publication.

An electronic copy in portable document format (pdf) of the duly signed certification and certified true copy of the aforesaid resolution shall be submitted within fifteen (I5) banking days after effectivity of the memorandum to all covered entities through email address [email protected] using an official email address of the covered entity, with the following format for the email subject line: Certification for SBLAF Early Adoptioncspace><Name of Covered Entity>,<space><Date of Certification in dd month name y4nryp For Example, To : [email protected] Subject : Certification for SBLAF Early Adoption <ABC Bank>, 28 October 2023 4. Non-receipt of an acknowledgement email from the account on the covered entity's email within the day shall mean failure of delivery of the message. 5. Post-verification of the covered entity's eligibility for the early adoption incentive may be conducted, as deemed necessary. Any misrepresentation will require the return of the incentive given as well as subject the covered entity to applicable enforcement actions under Sec. oo2/OO2-Q,/OOI-N (Supervisory Enforcement Policy) of the Manual of Regulations for Banks/Manual of Regulations for Non-Bank Financial lnstitutions. This memorandum shall take effect immediately. For guidance and compliance. C. FONACIER /O hnuaryzozl+ Page2ol2 Classification: GENERAL

AnnexA CERTIFICATION ON THE ADOPTION OF THE STANDARD BUSINESS LOAN APPLICATION FORM (SBLAF) TEMPLATES Name of BSFI Address I hereby certiff that the (Name of BsFl) has met the following conditions relating to the full implementation of the SBLAF templates: a. The prescribed templates are exclusively used for all covered loan applications under Circular No. ll55 dated 30 Seotember 2022; and b. The prescribed templates, in printed or electronic form, are accessible in all applicable channels (e.9., branches, offices, agents, online portals, apps) where borrowers may submit their covered loan applications. I also certifu that I have evaluated/assessed its implementation and that to the best of my knowledge and belief, said implementation equals or exceeds the standards prescribed by the Bangko Sentral rules and regulations. (Siqnature over Printed Name) President or an Officer of Equivalent Rank Date Classification: GENERAL