Amendment to the second paragraph of Subsecs. 306.5 (Books I to III) and 4306.5 (Book IV) of the Manual of Regulations for Banks and Other Financial Intermediaries
CIRCULAR NO. 167 Series of 1998
Pursuant to Monetary Board Resolution No. 726 dated May 20, 1998, the second paragraph of Subsecs. 306.5 (Books I to III) and 4306.5 (Book IV) of the Manual of Regulations for Banks and Other Financial Intermediaries is hereby amended as follows:
"In addition to the allowance for probable losses required by the Bangko Sentral ng Pilipinas in accordance with the foregoing guidelines, a general provision for loan losses not linked to individually identified uncollectible accounts shall also be set up equivalent to 2% of gross loan portfolio, less interbank loans, LOANS GUARANTEED BY THE SMALL BUSINESS GUARANTEE AND FINANCE CORPORATION, PHILIPPINE EXPORT GUARANTEE, GUARANTEE FUND FOR SMALL AND MEDIUM ENTERPRISES AND OTHER GOVERNMENT GUARANTEE CORPORATIONS,. PROVIDED THESE LOANS ARE NOT PAST DUE, and loans which are considered non-risk under existing laws/rules/regulations.
This Circular shall take effect immediately.
FOR THE MONETARY BOARD:
GABRIEL C. SINGSON Governor
More in BSP Circulars
- Amendments to Books I-IV of the Manual of Regulations for Banks and Other Financial Intermediaries(BSP Circular No. 3)
- Bangko Sentral lssued Securities as an Additional Instrument of Monetary Operations under the Interest Rate Corridor (lRC) System(BSP Circular No. 1095)
- Grant of FCDU License to Rural Banks/Cooperative Banks and Reduction of Minimum Capital Required for Thrift Banks to Operate an FCDU(BSP Circular No. 522)
- New Service Fees for Banks' Deposit and Withdrawal Transactions and Amendments to Operational Processes under the Enhanced Cash Management Services and Guidelines on Clean Note and Coin Policy(BSP Circular No. 931)
- Guidelines to incorporate market risk in the risk-based capital adequacy framework for universal banks and commercial banks(BSP Circular No. 360)
- Increase in the liquidity reserve requirement against peso demand, savings, time deposits and deposit substitute liabilities of UBs and KBs(BSP Circular No. 377)
- Exclusion from adverse qualitative classification of loans of Philippine branches of foreign banks to subsidiaries and affiliates in the Philippines of multinational companies(BSP Circular No. 603)
- Reporting Requirement on the Write-off of Loans, Other Credit Accommodations, Advances and Other Assets(BSP Circular No. 745)
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