Revised reports: CSOC, Schedule 2B of the Consolidated Statement of Condition (CSOC), Schedule of Consolidated Statement of Income and Expenses (CSIE)

CIRCULAR LETTER Series of 2002

TO: ALL THRIFT AND RURAL/COOPERATIVE BANKS

Effective for reports as of December 31, 2002, the following reports are revised to include/disclose data pertaining to microfinance loans:

1. Consolidated Statement of Condition (CSOC) As additional information, the following accounts shall be disclosed:

Microfinance Loans a. Current b. Past Due c. Items in Litigation (see Item 4 of TB Form 2)

Microfinance Loans Portfolio at Risk Restructured Microfinance Loans Allowance for Probable Losses – Microfinance Loans

2. Schedule 2B of the Consolidated Statement of Condition (CSOC) Schedule of Loan Portfolio and Other Accommodations

Additional schedule (2B.1 – Schedule of Microfinance Loans shall be submitted every month.

3. Schedule of Consolidated Statement of Income and Expenses (CSIE)

A new schedule of Income from Microfinance Loans shall be attached to the CSIE every quarter.

4. Schedule 1 of the Report on Compliance with Mandatory Credit Allocation Required under R.A. No. 6977 (as amended be R.A. No. 8299) or Magna Carta for Small and Medium Enterprises (SME)

Additional information of the amount of microfinance loans outstanding shall be disclosed as a footnote to loans to small enterprises.

Attached for reference are the revised formats of the affected reports and the revision in the Manual of Accounts to include the definition of microfinance loans.

ALBERTO V. REYES Deputy Governor