QuestionsQuestions (BSP CIRCULAR NO. 239)
It amends the Manual of Regulations and the Manual of Accounts for banks and non-bank financial institutions by setting accounting and regulatory rules on how ROPOA (Real and Other Properties Owned or Acquired) may be reclassified and booked as bank premises or as real property-land/building.
Subsection X606.3 of the Manual of Regulations for Banks is renumbered as Subsection X606.4.
Banks must book such ROPOA at its ROPOA balance, net of any valuation reserves. Only the acquired asset (or a portion) that will be immediately used or earmarked for future use may be reclassified and booked as bank premises.
Banks must first secure prior Bangko Sentral approval before effecting the reclassification.
It must submit justification and plans for expansion/use prior to the reclassification.
For non-banks, ROPOA may be reclassified either as real property-land or real property-building and booked at ROPOA balance, net of valuation reserves, subject to the condition that only assets immediately used or earmarked for future use may be reclassified. Non-banks also require prior BSP approval and must submit justification and plans for future use.
ROPOA may be reclassified either as real property-land or real property-building.
It is booked at the ROPOA balance, net of any valuation reserves.
Only such acquired asset (or portion thereof) that will be immediately used or earmarked for future use may be reclassified and booked as the corresponding property category.
It shall be recorded at the balance of the loan (principal plus booked accrued interest receivable after considering allowance for uncollected interest on loans less unamortized income) or at the bid/purchase price, whichever is lower.
They may be included in the book value of the acquired real estate, provided the total book value does not exceed the appraised value of the asset acquired, as determined by an independent appraiser acceptable to BSP.
It shall be recorded at cost or appraised value when cost is not involved/determinable in the acquisition of the property.
It represents real and other properties, other than those used for banking purposes or held in the investment portfolio, acquired by the bank in settlement of loans and/or for other reasons.
It covers real and other properties, other than those used for business purposes or held in the investment portfolio, acquired by the non-bank in settlement of loans and/or for other reasons.
No. For both banks and non-banks, it is recorded at the loan balance (principal plus booked accrued interest receivable after allowances and less unamortized income) or at the bid/purchase price, whichever is lower, and similar treatment applies to the related taxes subject to appraised value limits.
It takes effect immediately.
Both banks and non-banks must first secure prior BSP approval and, in case of future use, submit justification and plans for expansion/use.