Regulatory Relief through Temporary Relaxation of the Maximum Borrowing Limit of Pawnshops

OFFICE OF THE DEPUTY GOVERNOR FINANCIAL SUPERVISION SECTOR 050 MEMORANDUM NO. M-2020-___ To : All Pawnshops Subject : Regulatory Relief through Temporary Relaxation of the Maximum Borrowing Limit of Pawnshops The Monetary Board, in its Resolution No. 743 dated 11 June 2020, approved the grant of regulatory relief for Pawnshops through the relaxation of their maximum borrowing limit by increasing the allowed percentage of their total borrowings to pledge loans from 50 percent1 to 70 percent until 31 December 2021. The regulatory relief is expected to provide pawnshops better access to liquidity as they manage the impact of the COVID-19 crisis. Such relief can also assist the pawnshops as they continue to deliver financial services during this extraordinary situation. For guidance and implementation. CHUCHI G. FONACIER Deputy Governor 15 June 2020 1 As prescribed under Section 201-P of the Manual of Regulations for Non-Bank Financial Institutions A. Mabini St., Malate 1004 Manila, Philippines * (632)8708-7701 * www.bsp.gov.ph * [email protected]