MORNBFI Vol. 1 - Planters Development Bank

§§ 4190Q.4 - 4190Q.608.12.31credit substitutes (e.g., export Letter ofCredit (LCs) confirmed, underwrittenaccounts unsold), transaction-relatedcontingencies (e.g., performance bonds,bid bonds, standby LCs), short-term selfliquidatingtrade related contingenciesarising from the movement of goods(e.g., sight/usance domestic LCs, sight/usance import LCs), sale and repoagreements not recognized in the balancesheet; interest and FX rate related items;and other commitments];g. Provisions and allowances for lossesand how these are determined;h. Aggregate amount of securedliabilities and assets pledged as security; andi. Accounting policies which shallinclude, but shall not be limited to, generalaccounting principles, changes inaccounting policies/practices, principles ofconsolidation, policies and methods fordetermining when assets are impaired,recognizing income on impaired assets andlosses on non-performing credits, incomerecognition, valuation policies andaccounting policies on securitizations,foreign currency translations, loan fees,premiums and discounts, repo agreements,premises/fixed assets, income taxes,derivatives, etc.For purposes of computing theindicators in Item “a” above, the followingformulas shall be used:a. Return on Average = Net Income (or Loss) afterEquity (%) Income Tax x 100Average Total Capital AccountsWhere:Average Total = Sum of Total Capital Accounts as of theCapital Accounts 12 month-ends in the calendar/fiscalyear adopted by the QB12b. Return on Average = Net Income (or Loss) afterAssets (%) Income Tax x 100Average Total AssetsWhere:Average Total Assets = Sum of Total Assets as of the 12month- ends in the calendar/fiscalyear adopted by the QB12c. Net Interest = Net Interest Income x 100Margin (%) Average Interest Earning AssetsWhere:Net InterestIncomeExpense= Total Interest Income – Total InterestAverage Interest = Sum of Total Interest Earning Assets asEarning Assets of the 12 month-ends in the calendar/fiscal year adopted by the QB12§ 4190Q.5 (2008 - 4172Q.4) Disclosurerequirements in the annual report. QBsshall prepare an annual report which shallinclude, in addition to the AFS and otherusual information contained therein, adiscussion and/or analysis of the followinginformation:a. Financial performance;b. Financial position and changestherein;c. Overall risk managementphilosophy (a general statement of the riskmanagement policy adopted by the QB’sboard of directors which serves as the basisfor the establishment of its riskmanagement system), risk managementsystem and structure;d. Qualitative and quantitativeinformation on risk exposures (credit,market, liquidity, operational, legal andother risks); ande. Basic business management andcorporate governance information such asthe QB’s organizational structure, incentivestructure including its remunerationpolicies, nature and extent of transactionswith affiliates and related parties.§ 4190Q.6 (2008 - 4172Q.5) Posting andsubmission of annual report. A copy of thelatest annual report shall be posted by theQB in a conspicuous place in its head office,all its branches and other offices.The deadline for the submission of theannual report to the appropriate departmentof the SES is 180 calendar days after theclose of the calendar or fiscal year adoptedby the QB.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 57