Amendments to the guidelines for the implementation of the Subsidiary Ledger (SL) Reporting System

MEMORANDUM Series of 2004

TO     :  All Banks

The guidelines for the implementation of the Subsidiary Ledger (SL) Reporting System as provided under item 6 of Circular Letter dated December 20, 2000 pursuant to Circular 108 dated May 9, 1996, as amended by Circular 201 dated May 1, 1999, is hereby amended as follows:

1. The Subsidiary Ledger (SL) Reporting System shall be implemented in two phases.

a. Phase 1

Changes/adjustments to be taken up as follows:

(1)    To revise the existing SLs by including data elements appearing in the different Schedules of the monthly Consolidated Statement of Condition not disclosed in the original SL.

(2)    To adopt the level of data elements on a group-wide basis for Due from Other Banks, Head Office/Branches and Agencies, Deposit Liabilities, and Other Liabilities Ledgers.

(3)    To integrate the data structure of the existing Interbank Loans/Accounts Receivable Ledger (IBLAR) with the Loan Ledger.

(4)    To include the CREDEX report in the SL Reporting System.

(5)    To retain the existing format of Schedule 8 (Schedule of FCDU Other Assets and Other Liabilities From/To Non-Residents) and Schedule 9 (Report on Foreign Currency Cover).

b. Phase 2

This will cover the inclusion of new data elements as a result of changes in policies/regulations issued by BSP after Circular 201, the implementation of which shall be subject of a separate memorandum.

2.   The parallel testing of the Subsidiary Ledger (SL) Reporting System shall be carried out on a staggered basis, effective for reports as of January 31, 2004, which shall be transmitted to Bangko Sentral Ng Pilipinas (BSP) fifteen (15) banking days after end of reference month.   Each subsidiary ledger will undergo a two-months parallel testing and eventually go on a live reporting after a two-months parallel run.  Exceptions noted during the testing period will be communicated electronically to the banks’ concerned to effect the necessary corrections on errors uncovered during the validation process.  Non-participation during the parallel test and transmission of an erroneous Subsidiary Ledger (SL) report during the live-run will be subject to penalties for erroneous reporting.

3.   All commercial banks shall initially transmit to SRSO either under CC: Mail address CIR108 or Email address [email protected] their Due from Other Banks, Head Office/Branches/Agencies and Other Liabilities Subsidiary Ledgers under a staggered schedule of parallel testing and live implementation of the other subsidiary ledger reports, which shall be staggered as follows:

Name of SL File

Parallel Testing Period (Covering Reports As Of)

Liven Implementation (Covering Reports As Of)

Due From Other Banks, Head Office, Branches and Agencies Ledger

January 2004 to February 2004

March 2004

Other Liabilities Ledger

January 2004 to February 2004

March 2004

Deposit Liabilities Ledger

February 2004 to March 2004

April 2004

Bills Payable Ledger

March 2004 to April 2004

May 2004

Contingent Accounts Ledger

April 2004 to May 2004

June 2004

Equity Investments Ledger

May 2004 to June 2004

July 2004

Investments Ledger

June 2004 to July 2004

August 2004

Loan Ledger

July 2004 to August 2004

September 2004

4.   Once the subsidiary ledger is fully implemented, the bank shall be advised to discontinue transmitting to the Supervisory Reports and Studies Office (SRSO) the pertinent Consolidated Statement of Condition (CSOC) schedules.  Attached is the list of subsidiary ledgers and the related CSOC schedules (Annex 1).   Similarly, other related independent reports such, as the CREDEX will also be discontinued.

5.   Attached are the revised data structures for the Due from Other Banks, Head Office/Branches/Agencies, Other Liabilities and Deposit Liabilities Ledgers, Bills Payable, Contingent Accounts, Equity Investments, Investments and Loan Subsidiary Ledgers for your ready reference (Annex 2 to 9).

For strict compliance.

ALBERTO V. REYES Deputy Governor