Frequently Asked Questions

Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

A. ENHANCED REPORTING REQUIREMENTS ON INTEREST RATES ON LOANS AND DEPOSITS (IRLD)1

1. What are the key features of the enhanced report on IRLD?

The enhanced reports on interest rates on loans and deposits (IRLD) shall: (a) be
submitted to the BSP on a weekly and monthly basis; (b) cover all universal and
commercial banks (UBs/KBs); and (c) include only interest-bearing peso-
denominated loans (both secured and unsecured) to resident borrowers, as well as
peso- and U.S. dollar-denominated deposits to resident depositors.

The IRLD requires UBs/KBs to disclose interest rates on actual loans granted and
deposits generated classified as to product types, maturity period/terms, and size (of
deposits) as of a given reference period.2 IRLD replaces the daily, weekly and
monthly reports on interest rates on loans and deposits previously being submitted
by covered banks.

2. What is the purpose of reporting IRLD?

The compilation and publication of bank interest rates on loans and deposits is part
of the Bangko Sentral ng Pilipinas’ efforts to promote greater financial literacy,
consumer protection, and market transparency in the banking industry.

3. Is there a standard BSP template for the enhanced reports on IRLD?

Yes. The prescribed BSP reporting template can be downloaded from the BSP
website3 using the unique code (with password) provided to each Financial
Institution or requested from the BSP-Department of Supervisory Analytics (DSA).
The IRLD template is composed of Form 1 (weekly) and Form 2 (monthly).4 For
queries on the templates, you may contact the Department of Supervisory Analytics
at email addresses DSA_Request@bsp.gov.ph or NGuinto@bsp.gov.ph

4. Are the contents of Form 1 (Weekly Report) and Form 2 (Monthly Report) the same?

No. Form 1 includes only loans granted and deposits placed during the reference
week, while Form 2 includes the average outstanding loans and average daily level
of deposits for the reference month, to wit:

1
Based on Circular Nos. 1029 and 1037 dated 25 January 2019 and 11 April 2019, respectively.
2
Major categories (product types) of loans and deposits as defined in the Financial Reporting Package (FRP) for Banks.
These include loans to government and private corporation, contracts to sell, agrarian reform and other agricultural
loans, small and medium enterprise loans, microenterprise loans, and loans to individuals. On deposits, these include,
demand and savings deposits, time deposits, long-term negotiable certificates of deposit. On one hand, maturity
period/term covers from over a month to over five (5) years. The size of deposit, on the other hand, ranges from below
P50 thousand to over P10 million and from below USD1 thousand to over USD20 thousand for peso- and dollar-
denominated deposits, respectively.
3
http://www.bsp.gov.ph/SES/reporting_templates
4
Specific questions and corresponding answers relating to Form 1 and Form 2 are provided in Sections B and C,
respectively, of this FAQ.

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 Frequently Asked Questions
Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

Type of Report Contents

Total Volume Granted (Loans) / Received
(Deposits)/ Number of Transactions /
Form 1 Amount; Indicative Rates (Lower / Upper
Weekly Report Limit); Effective Interest Rates (Lower /
Upper Limit); Weighted Average Interest
Rates
Frequency of Repricing; Interest Income /
Form 2 Expense; Average Outstanding Loans /
Monthly Report Deposits; Weighted Average Interest
Rates

5. What are the corresponding reporting periods and submission deadlines of Form
1 and Form 2?

Reporting periods and submission deadlines vary depending on whether they are
weekly or monthly reports, as follows:

Type of Report Reporting Period Submission Deadline

Thursday of the current Not later than Friday
Form 1
week until Wednesday of after the end of reference
Weekly Report
the following week week
First day until the last Not later than 15 banking
Form 2
day of the reference days after the end of
Monthly Report
month reference month

6. What if the cut-off day for the last day of the reporting period falls on a holiday or
on a weekend?

If the cut-off day for the reporting period falls on a holiday (e.g. 12 June 2019) or on a
weekend (e.g. 31 August 2019), said cut-off day will not be adjusted given that some
banks are open on holidays and/or weekends. For example:

Cut-Off Day for the

Type of Report Reporting Period
Reporting Period
Form 1: For the week 6 June 2019 (Thursday) – 12 June 2019
ending 12 June 2019 12 June 2019 Wednesday) (Wednesday)
Form 2: For the 1 August 2019 (Thursday) – 31 August 2019
month of August 31 August 2019 Saturday) (Saturday)
2019

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 Frequently Asked Questions
Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

7. What is the standard number of days used to convert months to days?

Generally, a month is comprised of 30 calendar days, unless reference is made to: (a)
a specific month; or (b) banking days, in which case, weekends and/or holidays are
to be excluded. For example:
Exceptions to General Rule (1 Number of
Reference Given
month = 30 calendar days) Days
Specific month “For January 2019” 31
“Banking days in
Banking days 18
December 2019”

8. What constitute Peso-denominated loans granted to residents5 under Form 1 and

Form 2?

These cover all interest-bearing peso-denominated loans granted to residents (by all
bank branches, which should be consolidated by the Head Office) during the
reporting period in line with Section 11a6 of the Financial Reporting Package (FRP)
for Banks.

9. Do Peso-denominated loans granted to residents, include Foreign Currency

Deposit Unit (FCDU) and Foreign Regular loans converted to peso equivalent?

Yes, provided FCDU/foreign loans are converted to peso loans AND TRANSFERRED
from the banks’ FCDU books to the Regular Banking Unit books.

10. What constitutes Peso-denominated and Dollar-denominated deposits received

from resident depositors?

Deposits received include: (a) All credits in the system, which comes from all
interest-bearing deposit accounts; (b) Check deposits, cash deposits, and deposits
received thru online transactions; and (c) Initial deposits and succeeding deposits.

11. Aside from the U.S. dollar, are there other currencies included in the Report on
Volume and Interest Rates on Dollar-Denominated Deposits?

No. There are no other currencies included in the Report on Volume and Interest
Rates on Dollar-Denominated Deposits.

5
Under Section 613 of the Manual of Regulations for Banks, the term, “resident” refers to: (1) An individual citizen of the
Philippines residing therein; or (2) An individual who is not a citizen of the Philippines but is permanently residing
therein; or (3) A corporation or other juridical person organized under the laws of the Philippines; or (4) A branch,
subsidiary, affiliate, extension office or any other nit of corporations or juridical person which are organized under the
laws of any country and operating in the Philippines, except offshore banking unit (OBUs).
6
https://www.bsp.gov.ph/Regulations/FRPReportFormatsAndSchedules/FRP_MoA.pdf

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 Frequently Asked Questions
Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

12. What does it mean when the reporting of loans/deposits is in line with a particular
schedule of the FRP?

It means that the sub-categories of loans/deposits in IRLD are aligned with the sub-
accounts of Loans and Receivables-Others/Deposit Liabilities in the FRP.

B. WEEKLY IRLD REPORTS (FORM 1)

1. How shall bank transactions be disclosed if the weekly report falls in between
two (2) months?

In accordance with Memorandum No. M-2019-004 to all UBs/KBs7 dated 7 February

2019, if the weekly report falls in between 2 months, then two (2) weekly reports
capturing the days covered in the same month shall be submitted. For example:

Weekly
Coverage Period
Report Reference Date
28 March - 28 - 31 March 31 March 2019 (1)
03 April 2019 01 - 03 April 2019 03 April 2019 (2)

2. Using the example in item B.1. above, will the transactions to be reported cover
only until the last banking day, e.g. 29 March 2019 (Friday)?
No. Transactions to be reported will cover until the last day of the coverage period
(31 March 2019) as some banks are open during the weekend.

3. Are transactions during weekends to be reported as transactions for the next

banking day?
No. Transactions during weekends should be reported as transactions for those
weekends. In such case they shall form part of the transactions for the reference
period immediately preceding the next banking day.

4. What do “Indicative Interest Rates” refer to?

Indicative interest rates or quoted rates refer to the published rates of the bank. This
includes the indicative rates or quoted rates posted within the premises of covered
banks.

5. What do “Effective Interest Rates” refer to?

Effective interest rates refer to the actual or contracted interest rate granted to the
loan or deposit.

7
https://www.bsp.gov.ph/Regulations/Issuances/2019/m004.pdf

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 Frequently Asked Questions
Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

6. What do “Lower and Upper Limits” refer to?

The lower limit refers to the minimum level for the indicative and effective interest
rate. Meanwhile, upper limits refer to the maximum level for the indicative and
effective interest rate.

7. What does “Weighted Average Interest Rate (WAIR)” for credit card transactions
refer to?
This refers to the average interest rate (weighted by transaction amount) for credit
card transactions during the week that were charged with interest. For example:

Computation for Weekly WAIR of Credit Card Transactions

Transaction Interest Rate *

No.
Amount Interest Rate Charged
Amount
1 1000 0.03 30
2 1500 0.0275 41.25
3 1000 0.02 20
Total 3500 91.25

WAIR = Total of Interest Rate * Amount / Total Amount

= 91.25/3500
= 0.0261 or 2.61%

8. What does “Total Volume Granted” for credit card transactions refer to?
Total Volume Granted refers to the total volume of credit card transactions for the
week. For example:

Total Volume Granted for Credit Card Transactions

Transaction Amount 1 10,000
Transaction Amount 2 20,000
Transaction Amount 3 15,000
Total Volume Granted for 45,000
Credit Card Transactions

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 Frequently Asked Questions
Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

9. What loans should be included in the weekly report?

Loans, which are subject of the IRLD report, pertain to those loans granted other
than to BSP, banks and non-bank financial institutions with quasi banking authority.
For guidance, these are loans classified under item 11.c (Loans and Receivables-
Others), of the FRP for Banks. As provided under FRP Schedule 11 (Loans and
Receivables-Others), bills purchased, customers’ liability on bills/drafts under LC/TR,
and customer’s liability for banks’ acceptance are part of Loans and Receivables-
Others. Please also note that the loan category in the IRLD report is based on FRP
accounts.

10. Are loan renewals to be included in the Volume and Interest Rates on Peso-
denominated Loans and Receivables - Others under Form 1?
No. A renewal of a loan is not considered a new loan and is thus not included under
Form 1.

11. Are Zero Interest Loans like Domestic Bills Purchase Line included under Form 1?
Only interest-bearing loans classified under Loans and Receivables-Others as
defined in the FRP and granted within the reference week are included in the report
(Form 1). Thus, zero-interest loans such as domestic bills purchase line are not
included in Form 1.

12. What does “Number of Transactions” refer to?

For loans, it is the total number of loans granted. However, for deposits, banks should
report the total number of deposit transactions (pertains to receipt of deposit8 and
excludes withdrawal of money from bank accounts) and not the total number of
accounts opened.

13. What does “Amount of Total Volume Received” refer to?

The amount of total volume received under Form 1 refers to the total amount of
deposits placed, excluding any withdrawals, within the reference week.

14. When reporting time deposits for the reference week, do these transactions need
to be reported each week until they mature?
No. Deposits shall only be reported once and during the reference week wherein
they were placed.

C. MONTHLY IRLD REPORTS (FORM 2)

1. How should the “Frequency of Repricing Period” be reported?

The frequency of repricing period shall be reported by identifying the most frequent
repricing period among the loans/deposits which were repriced.

8
Includes fund transfers made from one account to another by the same account holder.

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 Frequently Asked Questions
Enhanced Reports on Interest Rates on Loans and Deposits (IRLD)

2. What is the coverage for the “Interest Income/Expense” to be reported?

The interest income or expense to be reported are those that were earned or
incurred during the reference month.

3. How is the “Average Outstanding Loans” computed?

The average outstanding loans (AOL) balance during a month is derived through a
simple average of the daily average outstanding loan balance for the reference
month.

To illustrate, using January (consisting of 31 days), as the reference month, if the

outstanding loan balance for Day 1 is PhP500, and the outstanding loan balance for
Day 2 is PhP600, and so on, the AOL to be reported shall be computed by dividing
the sum of these daily outstanding loan balances by 31 days, as follows:

Php500Day 1 + Php600Day2 + (… and so on till Day 31) = AOL for January

31

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