Guidelines on Sound Credit Risk Management Practices; Amendments to the Manual of Regulations for Banks and Non-Bank Financial Institutions

October 29, 2014BSP CIRCULAR NO. 855-14SUBJECT:Guidelines on Sound Credit Risk Management Practices; Amendments to the Manual of Regulations for Banks and Non-Bank Financial Institutions The Monetary Board in its Resolution No. 1606 dated 9 October 2014, approved the following guidelines on sound credit risk management practices as well as the amendments/deletions of certain provisions in the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI). SECTION 1. Section X178/4178Q/4197N on credit risk management statement of policy is hereby added to the MORB/MORNBFI to read as follows:"Sec. X178/4178Q/4197N. Credit Risk Management; Statement of Policy. — It is the policy of the BSP to ensure that financial institutions (FIs) under its supervision have adequate and effective credit risk management systems commensurate to their credit risk-taking activities. Towards this end, the following guidelines on credit risk management set forth the expectations of the BSP with respect to the comprehensive management of credit risk. The guidelines further articulate sound principles and practices that shall be embedded in the credit risk management framework of...