On Mar. 31, CLB SFC published guidelines and deadline for the STS.
CLB SFC published Bulletin 760 containing Circular Letter 18 re stress test scheme.
Specified Groups 1 and 2 banking entities must submit information requested in Format 527 (Proforma F.1000-138) Stress Tests with a cut-off date of Dec. 31, 2024.
Highlights
Applicable to Group 1 banking entities defined in the Basic Accounting and Financial Circular (CBCF), and Group 2 entities that did not present profits as of Dec. 31, 2024.
Entities must design macroeconomic, financial scenarios for stress testing scheme (STS), such as baseline, adverse, adverse scenario with uncertainty in trade relations.
Entities must include a recovery plan with mitigating actions in the qualitative report.
Based on the effects of an adverse scenario with uncertainty in trade relations.
In order to set financial strength and viability of business after scenario materializes.
Also, must include projections, different projected values, and a sensitivity analysis.
Deadline
STS results and Circular Letter 18 data must be submitted on or before Jul. 31, 2025.
