Subsection X342.7. Sanctions. The following administrative sanctions
shall be imposed on banks:
a) For non-compliance/under compliance with the prescribed portions
of loan portfolio to be allocated to MSEs and MEs:
For zero compliance for both MSEs and MEs P500,000;
(a) For MSEs percentage of under-compliance multiplied by
(b) For MEs percentage of under-compliance multiplied by
to be computed as of end of each quarter.
(3) For willful making of a false or misleading statement to the BSP
P500,000 per quarter-end report without prejudice to the
sanctions under Section 35 of R.A. No. 7653.
The imposition of the fines in Items "(1)" to "(2)" shall be without
prejudice to the other administrative sanctions under Section 37 of
R.A. No. 7653.
(b) For non-submission/delayed submission of reports on compliance
with both the prescribed portions of loan portfolio to be allocated to
MSEs and MEs, respectively:
(1) UBs/KBs - P1,200
(3) RBs/Coop Banks - 180
per calendar day of delay.
Subsection X342.8. Disposition of penalties collected. Ninety percent
(90%) of penalties collected under Subsection X342.7 above shall be remitted
by the BSP to the MSMED Council Fund, while the remaining ten percent
(10%) shall be retained by the BSP to cover its administrative expenses.
Section 2. Subsection X365.5 on the incentives to participating financial
institutions under R.A. No. 9178 is hereby amended to read, as follows: