Supplemental Report to the Financial Reporting Package (FRP) on Modified and Restructured Loans

MEMORANDUM NO. M-2022-__ 001 OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR To : All BSP-Supervised Financial Institutions (BSFIs) Subject : Supplemental Report to the Financial Reporting Package (FRP) on Modified and Restructured Loans The Monetary Board (MB), in its Resolution No. 28 dated 06 January 2022, approved the submission of a supplemental report to the FRP by BSFIs to cover details of modified and restructured loans (Annex A) following the issuance of BSP Memorandum No. M-2021-056 dated 21 October 2021. The supplemental report to the FRP on modified and restructured loans shall be considered a Category A-1 primary report and shall be submitted on both solo and consolidated bases. The 1st submission of the supplemental report shall cover the reporting periods as of: (i) 30 September 2021, to establish baseline information on modified and restructured loans before applying the provisions of BSP- Memorandum No. M-2021-056, and (ii) 31 December 2021. The submission of the supplement report to the FRP shall be subject to the provisions of Section 171/172-Q (Sanctions on reports for non-compliance with the reporting standards) of the Manual of Regulations for Banks/Non-Bank Financial Institutions. The following information shall be required to be disclosed in the supplemental report: a. Classification of the loan portfolio based on (1) age or the number of days past due, and (2) stage of expected credit losses (ECL) and the corresponding allowance for credit losses, as provided under the Philippine Financial Reporting Standards (PFRS) 9; b. Classification of modified and restructured loans as to the stage of ECL and the corresponding allowance for credit losses (ACL); c. All modified loans that are not classified as restructured as of the reporting period;

d. New loans granted reflecting the actual cash flows, and written-off accounts during the reporting period; and e. The remaining BSP-approved ACL for staggered booking under BSP Memorandum No. M-2020-061 dated 3 August 20201. In this respect, the submission of the supplemental report to the FRP by BSFIs who availed of the regulatory relief measures on the: (i) exclusion of eligible loans from past due (PD) and non-performing loan (NPL) classifications, and (ii) staggered booking of ACL under BSP-Memorandum No. M-2020-061 dated 3 August 2020 shall cease effective the 2022 FRP reporting period. The supplemental report shall be submitted electronically to the Department of Supervisory Analytics (DSA) following the submission timeline below: Reporting Periods Covered Timeline 30 September 2021 15 February 2022 31 December 2021 15 February 2022 January-December 2022 Following the submission timeline of solo and consolidated FRP The BSP, through the DSA, will issue a separate memorandum covering the specific guidelines on the mode and manner of the electronic submission of the supplemental report to the FRP on modified and restructured loans. For information and guidance. Digitally signed by DG Chuchi G. Fonacier 11 January 2022 CHUCHI G. FONACIER Deputy Governor 11 January 2022 This refers to BSFIs that did not avail the 1 temporary regulatory relief provided under BSP Memorandum No. M-2021-055 dated 19 October 2021.

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