BSP Circular No. 159 (1998)

(NAR) VOL. 9 NO. 2 / APRIL - JUNE 1998

[ BSP CIRCULAR NO. 159, March 24, 1998 ]

PROVISION/ALLOWANCE FOR PROBABLE LOAN LOSSES

Pursuant to Monetary Board Resolution No. 357 dated 4 March 1998, the provisions of the first paragraph of Subsecs. ______ 306.6 (Books I to III) and 4306Q.6 (Book IV) of the Manual of Regulations for Banks and Other Financial Intermediaries are hereby amended to read as follows: "Transitory provision. The two percent (2%) general provision for probable loan losses shall be fully set up within TWO (2) years, as follows: 1% by 1 October 1998 1 ½% by 1 April 1999; and 2% by 1 October 1999. Provided: That where the total amount of allowance to be set-up would impair a bank's net worth, the period may be extended by the Monetary Board." This Circular shall take effect immediately. Adopted: 24 Mar. 1998

(SGD.) GABRIEL C. SINGSON Governor