friday, 19 june 2009 makati shangri-la hotel bsp proposed changes in clearing rules chamber of...
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Friday, 19 June 2009Makati Shangri-La Hotel
BSP Proposed Changes in Clearing Rules
Chamber of Thrift BanksGeneral Membership Meeting
BSP Proposed Changes in Clearing Rules
Objectives
Minimize/Eliminate BSP Settlement Risk
Level Playing Field for TB and KB
Lay Groundwork for Reduction of Float Days
BSP Proposed Changes in Clearing Rules
Original BSP Proposal
All Banks to Go on Next Day Value for Clearing Credits
Mandatory Overdraft Clearing Lines
Risk Based Credit Evaluation
Current BSP Proposal
BSP Proposed Changes in Clearing Rules
Current Clearing Time Highlights
D + 0 4:30PM Outward Clearing ECS Cut-off D+0
4:45PM Results of Outward Clearing ECS Available
5:00PM Check Document Exchange Cut-off
5:45PM Completion of BSP Treasury RP & IBCL for Liquidity and Reserve/Shut down of PhilPass for D+0
12:00PM – 2:00AM (D +1)
Completion of Check Document Exchange
D + 1 7:30AM ECS of D+0 Morning Returns Cut-off (Value D+0)
7:45AM Results of Morning Returns ECS available
7:45AM– 8:45AM BSP Treasury RP & IBCL for Losses in AM Returns
D + 1 4:30PM Outward Clearing ECS Cut-off D+1
BSP Proposed Changes in Clearing Rules
Changes in Clearing Timeline
D + 1 7:30AM ECS for D+0 Mandatory Returns ECS for Unfunded Checks of D+0 for Value D+0
D + 1 4:30PM ECS for Outward Clearing and Technical Returns of D+0 Only for Value D+1
BSP Proposed Changes in Clearing Rules
Impact of Changes
Mandatory PM Funding of Bank DDA Based on Clearing Results of D+0 – Unfunded Bank’s DDA may Result in Unwinding of Bank’s Clearing Items
Incoming Returns (Due to Insufficiency of Customer Funds) will Result in Adjustment of Bank’s DDA of D+0 Done AM of D+1 with Value D+0 Due to Netting Effect of Unfunded Returns
BSP Proposed Changes in Clearing Rules
How Changes May Be Accomplished
On Line Operations
Centralization of Clearing Operations in Manila
Use of ECS Data in Early Determination of Unfunded Items
Fast Determination of Thrift Banks NOW Accounts’ Unfunded Items
BSP Proposed Changes in Clearing Rules
Implication - Customers
Education on Impact of Changes on Account Handling
Funding of Accounts cannot be on a Catch Up Mode
No Client Selection of which Items to Return
Centralized Clearing will Cut Float Period for Regional and Inter-regional Checks
BSP Proposed Changes in Clearing Rules
Implication - Banks Same Day Clearing Credit for Cir 163 Thrift Banks
Centralized Clearing will Cut Float Period of Regional and Inter-regional Checks
Credit Implication of Bills Purchase Lines
Time Pressure for Clearing Operations
Higher Efficiency in Branch Operations
Treasury Management of Funding Value Dated Returns
Income Implications on Changes in Handling of Returns
Cost Implications on Centralization
Reputational Risk of Unwinding
Target Implementation DateTarget Implementation Date
January 31, 2010January 31, 2010
BSP Proposed Changes in Clearing Rules
Open ForumOpen Forum
BSP Proposed Changes in Clearing Rules
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