Title
BSP Rules on Non-Performing Loans
Law
Bsp Circular No. 248
Decision Date
Jun 26, 2000
BSP Circular No. 248 establishes clear definitions and criteria for classifying non-performing loans, detailing the conditions under which loans become past due based on various payment schedules and arrears thresholds.
A

Criteria for Determining Past Due Status of Loans Payable in Installments

  • The total outstanding balance of installment loans is considered past due based on the following arrears schedule:
    • Monthly: 3 installments in arrears
    • Quarterly: 1 installment in arrears
    • Semi-annually: 1 installment in arrears
    • Annually: 1 installment in arrears
  • Regardless of the above, if arrearages reach 20% of the total outstanding loan balance, the entire balance is considered past due.
  • For payment modes not listed (daily, weekly, semi-monthly), the entire outstanding balance is past due when arrearages reach 10% of the total loan balance.
  • "Installments" refer to principal and/or interest amortizations due on specified dates in the loan documents.

Legal Effectivity and Authority

  • These amendments were approved by the Monetary Board under Resolution No. 707 dated May 5, 2000.
  • They amend provisions in Circular No. 202 (1999) and Circular No. 143 (1997).
  • The Circular takes effect immediately upon adoption by the Acting Governor of the Bangko Sentral ng Pilipinas on June 26, 2000.

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