Approval of a separate single borrower's limit of 35% of unimpaired capital and surplus for wholesale lending activities of government banks to PFIs

CIRCULAR NO. 244 Series of 2000

The Monetary Board, in its Resolution No. 616 dated April 18, 2000, approved a separate single borrower’s limit (SBL) of 35% of unimpaired capital and surplus for the wholesale lending activities of government banks to participating financial institutions (PFIs) for relending to end-user borrowers, subject to the following guidelines:

Government banks’ SBL of 35% of unimpaired capital and surplus shall apply only to loans granted to PFIs on a wholesale basis for on-lending to end-user borrowers;

The 35% SBL shall apply only to loan programs funded by multilateral, international of local developmental agencies, organizations or institutions specially designed for wholesale lending activities of government banks;

The end-user borrowers of the PFIs shall be subject to the 25% SBL, not to the increased ceiling of 35%; and

Government banks shall observe the minimum criteria for accrediting PFIs and for the grant/renewal of credit lines to accredited PFIs as set forth on Annex A.

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

ALBERTO V. REYES Officer-in-Charge