BSP Circulars BSP Circular No. 159BSP Circular No. 159 1998-03-24T00:00:00.000+08:00

Transitory provisions

CIRCULAR NO. 159 Series of 1998

Pursuant to Monetary Board Resolution No. 357 dated 4 March 1998, the provisions of the first paragraph of Subsecs. ______ 306.6 (Books I to III) and 4306Q.6 (Book IV) of the Manual of Regulations for Banks and Other Financial Intermediaries are hereby amended to read as follows:

"Transitory provision. — The two percent (2%) general provision for probable loan losses shall be fully set up within TWO (2) years, as follows:

1% by 1 October 1998 1 ½% by 1 April 1999; and 2% by 1 October 1999.

Provided: That where the total amount of allowance to be set-up would impair a bank's net worth, the period may be extended by the Monetary Board."

This Circular shall take effect immediately.

FOR THE MONETARY BOARD:

GABRIEL C. SINGSON Governor

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