Philippine Daily Inquirer
10:41 pm | Friday, September 27th, 2013
The Bangko Sentral ng Pilipinas (BSP) is tightening its watch over the credit card businesses of local banks to ensure that consumers are protected amid the increasing use of “plastic” money.
Starting next month, banks will be required to submit reports on the scope of their credit card operations, the number of issued and type of cards, fees and charges for transactions and credit limits for the average user.
The data will be included in the credit card business activity reports (CCBAR) to be submitted to the regulator every month.
“The BSP deems it necessary to require the submission of the CCBAR in order to enhance the credit card database of both credit card issuers and cardholders, ensure transparency and availability of information on credit card operations and complaint resolution, and afford profound analysis on the credit card industry for policy-making,” the central bank said.
BSP Circular 812-2013, which was published this week, outlined the reporting requirements of all banks, quasi-banks and their subsidiaries and affiliates with credit card businesses.
Reports on credit card issuers and acquirers, cardholders and complaints would have to be submitted monthly, while data on usage location of credit cards would be submitted quarterly, the BSP said.
The BSP said financial institutions would have to disclose the number of cards per network or brand, the types of cards issued, approved applications and the number of cards based on credit limits.
Banks were also told to disclose their total receivables, gross payments, general profiles on cardholders (based on gender, civil status and educational attainment, among others) and the type of payments.
Companies that fail to comply would be slapped with financial and regulatory penalties, the BSP said.
The submission of reports, the BSP said, would ensure “transparency and availability of data on credit card operations in light of ensuring consumer protection.”
The BSP said it also wanted to use the data for the crafting of policies to manage the risks involved in credit transactions.
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Tags: banking sector , Business , credit card operations
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