The Bangko Sentral ng Pilipinas (BSP) said it issued new rules Friday governing the credit-checking powers of non-stock savings and loan association (NSSLA) personnel.
In circular no. 1118, the BSP said individual agents and sales representatives of NSSLAs can accept applications; conduct credit and background checks on applicants; appraise loan collateral except for loans to be restructured; and accept applications for deposit accounts.
They can also promote the associations and introduce their products and services to potential members; offer financial literacy training; assist with applications; and help new and existing members with their concerns.
The BSP barred agents and sales representatives of NSSLAs from conducting know-your-customer checks and from participating in policy-making, board management oversight activities and risk governance.
They also cannot approve new loans or loan renewals and process the opening and closing of deposit and capital contribution accounts, nor can they approve transactions related to deposit and capital contribution accounts and applications for membership.
“General administrative services and other incidental services sought to be performed by a third party which are neither considered as acts of agency directly related to the functions and operations of an NSSLA nor covered by the guidelines on outsourcing, do not require prior BSP approval,” according to the circular. — Beatrice M. Laforga