Financial Sector Assessment Program Update : Philippines - Focused Update of the Basel Core Principles for Effective Banking Supervision

Abstract

This focused assessment of the current
 state of the Philippines' compliance with the Basel
 core principles for effective banking supervision is an
 update of the detailed assessment completed as part of the
 International Monetary Fund (IMF)-World Bank Financial
 Sector Assessment Program (FSAP) that took place in 2002.
 Thus, the current assessment targets those Basle Core
 Principles for Effective Banking Supervision (BCPs) for
 which the initial assessment was non-compliant or materially
 non-compliant, and those for which the FSAP had recommended
 reforms. As the original assessment had been made using the
 1997 methodology, which was superseded by the 2006
 methodology, the principles that were reviewed were mapped
 into the 2006 principles. This report should provide inputs
 for the enhancement of the Central Bank of the Philippines
 (BSP's) action plan to move toward full compliance with
 the core principles. This assessment of the effectiveness
 of banking supervision was based on an examination of the
 legal and regulatory framework and benefited from the inputs
 of the IMF resident advisor, as well as the BSP's very
 detailed self-assessment and responses to a questionnaire.