BSP delays implementation of new standards for real estate, project finance

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The Bangko Sentral ng Pilipinas (BSP) has pushed back the implementation of tighter standards for banks in reporting real estate loans and project finance.

The central bank issued Memorandum M-2018-019 that “rationalized” deadlines for all lenders in submitting more detailed reports project finance and real estate exposures. This effectively pushed back the implementation of tighter rules which would have kicked in by June 30.

Circular 976 signed in October 2017 tightened the BSP’s hold on banks in granting property loans, as the regulator looks to enhance its oversight on the volatile real estate segment amid continued double-digit credit growth in the financial system.

In particular, banks need to report specific details on real estate loans covering mid- and high-end housing units, as well as socialized and low-cost housing effective June 30, 2018– Melissa Luz T. Lopez