BSP CIRCULAR LETTER, May 06, 1997
REAL ESTATE LOANS BY COMMERCIAL BANKS
National Administrative Register May 6, 1997
Please be informed that the Monetary Board, in its Resolution No. 477 dated April 28, 1997, decided as follows:
“1. To reduce from 70% to not more than 60% of the appraised value of the real estate security and the insured improvements the loan value of real estate given as security for any loan granted by a commercial bank;
2. To direct commercial banks to observe an aggregate limit on real estate loans to not more than 20% of their respective total loan portfolio; and
3. To give commercial banks whose total outstanding real estate loans exceeds 20% of total loan portfolio a period of one year within which to comply with the prescribed ratio.”
Please be guided accordingly.
Adopted: 6 May 1997
(SGD.) ALBERTO V. REYES
Deputy Governor
Deputy Governor