BSP Circular Letters BSP Circular Letter No. CL05061997BSP Circular Letter No. CL05061997 1997-05-06T00:00:00.000+08:00

Real estate loans

CIRCULAR LETTER Series of 1997

TO : All Commercial Banks

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.

ALBERTO V. REYES Deputy Governor

Open the source record ↗

More in BSP Circular Letters

Want an analysis of this document?

Ask ASG Legal AI to summarize it, compare it with other rulings, or explain how it applies to your situation — it researches from this same library.