BSP tightens reporting standards for pawnshops

The Bangko Sentral ng Pilipinas (BSP) has issued new reporting standards that pawnshops must follow when submitting regulatory filings, providing such entities a “reasonable” framework while setting clearer guidelines on sanctions for violators.

BSP Governor Eli Remolona Jr. signed on Jan. 15 a circular that amended some provisions in the manual of regulations governing nonbank financial institutions like pawnshops, particularly the rules on the timely preparation and submission of reports.

Such reports include information on a pawnshop’s operation and management, as well their financial condition and the results of operations.

The BSP said the “complete, accurate, consistent, reliable and timely” submission of these reports was critical for “effective” supervision.

“They also support the Bangko Sentral’s determination and formulation of appropriate and responsive regulatory policies, supervisory tools, approaches and interventions, and the pawnshop operator/management’s business decision-making,” the circular read.

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To comply, the central bank said a pawnshop must ensure that it has a reporting system in place that can perform key functionalities under both normal times and stressed conditions like crises, public health emergencies and disasters.

Such functionalities include the ability to generate “accurate, complete and reliable information” as required by the BSP and other regulatory bodies.