MORNBFI Vol. 1 - Planters Development Bank

APP. Q-4611.12.31following information with regard to interestrate risk in the banking book have to bedisclosed in banks’ Annual Reports:a) Internal measurement of interest raterisk in the banking book, includingassumptions regarding loan prepaymentsand behavior of non-maturity deposits, andfrequency of measurement; andb) The increase (decline) in earnings oreconomic value (or relevant measure usedby management) for upward and downwardrate shocks according to internalmeasurement of interest rate risk in thebanking book.Part IX. EnforcementA. Sanctions for non-reporting of CARbreaches1. It is the responsibility of the bankCEO to cause the immediate reporting ofCAR breaches both to its Board and to theBSP. It is likewise the CEO’s responsibilityto ensure the accuracy of CAR calculationsand the integrity of the associatedmonitoring and reporting system. Anywillful violation of the above will beconsidered as a serious offense forpurposes of determining the appropriatemonetary penalty that will be imposed onthe CEO. In addition, the CEO shall besubject to the following non-monetarysanctions:a) First offense – warning;b) Second offense – reprimand;c) Third offense – 1 month suspensionwithout pay; andd) Further offense – disqualification.B. Sanctions for non-compliance withrequired disclosures2. Willful non-disclosure orerroneous disclosure of any item requiredto be disclosed under this framework ineither the Annual Report or the PublishedStatement of Condition shall beconsidered as a serious offense forpurposes of determining the appropriatemonetary penalty that will be imposed onthe bank. In addition, the CEO and theBoard shall be subject to the followingnon-monetary sanctions:a) First offense – warning on CEO andthe Board;b) Second offense – reprimand on CEOand the Board;c) Third offense – 1 month suspensionof CEO without pay; andd) Further offense – possibledisqualification of the CEO and/or the Board.(Circular No. 538 dated 04 August 2006, as amended byCircular Nos. 717 dated 25 March 2011, 713 dated 14 February2011, 709 dated 10 January 2011, 605 dated 05 March 2008,588 dated 11 December 2007, M-2007-019 dated 21 June 2007,Circular No. 560 dated 31 January 2007 and M-2006-022 dated24 November 2006)Q RegulationsAppendix Q-46 - Page 40Manual of Regulations for Non-Bank Financial Institutions