1998 / Jul
BSP CIRCULAR LETTER GENERAL LOAN LOSS PROVISION July 13, 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:
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 Governor
| Gross Loan Portfolio | P xxx |
| Less: Exclusions | |
| 1) Interbank Loans Receivable | P xxx |
| 2) Current loans guaranteed by SBGFC, Phil. Export Guarantee, Guarantee Fund for SMEs & other government guarantee corporations | xxx |
| 3) Loans considered non-risk under existing regulations | xxx |
| Total Exclusions | P xxx |
| Loan Portfolio, net of exclusions | P xxx |
| Less: 1) Specific Provisions for Classified Loans (at least equal to the BSP recommended specific loan lossprovisions based on latest examination | P xxx |
| 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
Deputy Governor