ROPOA as Compliance for Loan-to-Deposit Ratio

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BSP CIRCULAR NO. 330, APRIL 24, 2002: ROPOA as Compliance for Loan-to-Deposit Ratio

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Title Supreme Court: ROPOA as Compliance for Loan-to-Deposit Ratio

Law: Bsp Circular No. 330, April 24, 2002

Decision Date: Apr 24, 2002

BSP Circular No. 330 mandates that Real and Other Properties Owned or Acquired (ROPOA) can be counted towards banks' compliance with loan-to-deposit ratios, provided they are properties acquired through loan settlements and valued at their net book value, excluding certain taxes and expenses.

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Eligibility Criteria for ROPOA

Only properties that banks have acquired through settlement of loans are eligible for inclusion.
Properties obtained by other means are excluded from being considered in the calculation.

Valuation of ROPOA for Compliance Purposes

The value of ROPOA counted towards compliance must be limited to the net book value.
The net book value excludes capital gains tax, documentary stamp tax, and any other capitalized expenses related to the acquisition or holding of the property.

Effective Date and Authority

The circular prescribing these rules took effect immediately upon issuance on April 24, 2002.
The issuance was made under the authority of the Bangko Sentral ng Pilipinas (BSP) Governor Rafael B. Buenaventura, reflecting the Monetary Board's resolution.

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