Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

Amendment to banks’ credit, risk-taking rules not to result in excessive property price hikes

Posted on December 3, 2014

By Joann Santiago

MANILA, Dec 3 (PNA) — Affordability of housing units in the Philippines is not expected to rise vis-à-vis the amendments on banks’ credit-risk taking.

Philippine Savings Bank (PSBank) President Vicente R. Cuna, Jr. said the amendments, which includes the decrease of the maximum loan value of real estate being used as loan collateral from 80 percent to 60 percent, is not a big issue.

He said that the amendments “are really meant for the BSP (Bangko Sentral ng Pilipinas) to be ahead of the curve.”

He said banks continue to lend to the real estate sector as well as individuals applying for mortgage loans even after the amendments of regulations on credit and risk-taking.

He said banks are still allowed to consider 80 percent of the collateral as loan value but at their expense.

“This brings back to the point of the BSP that they’re not curtailing lending to real estate but they want banks who do (lending business) to be properly capitalized. Nothing’s wrong with that,” he said.

”It’s really all a pro-active stance. I don’t think it will affect affordability,” he said.

Earlier, BSP Governor Amando Tetangco Jr. said there was a need to lower the weight of collateral on loans to check on the financial institutions’ credit risk management quality and to align the rules with international standards.

“Rather than promoting mere compliance with detailed regulations, the focus will be on assessing the quality of the internal credit environment from end-to-end,” he said

Tetangco said “prudent lending should be primarily based on solid analysis of creditworthiness and quality of cash flows.”

He also said that “by discouraging obsession with collateral, the new regulations promote better access to credit by those who are not necessarily collateral heavy but do have the ability to pay from business operations or other regular cash flows.” (PNA)

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme