MANILA - The Bangko Sentral ng Pilipinas (BSP) is requiring banks and other financial institutions to submit monthly credit card business activity reports (CCBAR) containing data on credit card issuers, cardholders, complaints, and card use location.
The BSP intends to enhance its credit card database to ensure transparency and availability of information on credit card operations and complaints resolution, and afford analysis of the credit card industry for policy-making.
The new rules are contained in Circular 812.
The CCBAR, which will be submitted in monthly, aims to ensure consumer protection as well as managing risks involved in credit card transactions, banks/quasi-banks including subsidiaries and affiliates.
The BSP aims to capture more credit card data, including the number of credit card holders in the country. To date, the BSP regularly reports data on credit card receivables of banks, including that portion which is non-performing.
Credit card receivables climbed 11 percent to P131.9 billion in the first quarter, from P118.8 billion in the same three-month period last year. Universal and commercial banks held bulk of the receivables at 82.6 percent, with their subsidiaries cornering the remaining 17.3 percent.
Non-performing receivables increased to 11.2 percent of total credit card transactions, but eased to 13 percent of big banks' total amount of bad loans.
Recently, the BSP issued new rules to strengthen the security banks and non-bank financial institutions' electronic products, including credit cards.
The regulation requires BSP-supervised institutions to adopt end-to-end Triple Data Encryption Standard (3DES) for the whole ATM network by January 1 and shift from magnetic stripe technology to more secure WMV chip-enabled cards by August 1, 2017.
source: interaksyon.com
