BSP Circular Letter (13 July 1998)
GENERAL LOAN LOSS PROVISION
(NAR) VOL. 9 NO. 3 / JULY - SEPTEMBER 1998
[ BSP CIRCULAR LETTER, July 13, 1998 ]
GENERAL LOAN LOSS PROVISION
With reference to Circular No. 143 dated October 1, 1997, as amended, please be informed that the general loan loss provision shall be computed as follows: Gross Loan Portfolio P xxx Less: Exclusions 1) Interbank Loans Receivable P xxx 2) Current loans guaranteed by SBGFC, Phil. xxx Export Guarantee, Guarantee Fund for SMEs & other government guarantee corporations 3) Loans considered non-risk under existing xxx regulations Total Exclusions P xxx Loan Portfolio, net of exclusions P xxx Less: 1) Specific Provisions for Classified P xxx Loans (at least equal to the BSP recommended specific loan lossprovisions based on latest examination Net Loan Portfolio P xxx Prescribed Percentage for General Loan Loss Provisioning based on Circular No. 164 dated April 13, 1998: 1% by 10.01.98 1 ½% by 04.01.99 2% by 10.01.99 General Loan Loss Provision P xxx The same formula shall be adopted for loan loss provisioning with respect to loans granted by the trust department of banks either directly or thru various trust funds/managed funds. Please be guided accordingly. Adopted: 13 July 1998
(SGD.) ALBERTO V. REYES Deputy GovernorSource: Supreme Court E-Library