The Presidents/Chief Executives,
All Banks/DFIs
Dear Sirs/Madams,
REGULATORY RELIEF TO DAMPEN THE EFFECTS OF COVID-19 -
AMENDMENT IN PRUDENTIAL REGULATIONS FOR HOUSING FINANCE HF-9
Please refer to IH&SMEFD Circular No. 03 of 2017, whereby revised Prudential Regulations for Housing Finance were issued.
2. It has been decided to amend the Housing Finance Prudential Regulation HF-9: General Reserve against Housing Finance.
3. The term “general reserve” used in the aforementioned Regulation shall henceforth be read as “general provision”.
4. The Banks/DFI, subject to conditions prescribed below, can release and use the general provision maintained, in terms of Regulation HF-9 of Prudential Regulations for Housing Finance, against the housing finance portfolio:
- The general provision will only be available for use to make good the specific provision requirement of the housing financing portfolio; and,
- The aforesaid treatment will expire on December 31, 2021. Thereafter, the general provision against the house financing portfolio will be maintained as per the method prescribed in the Regulation HF-9 of Prudential Regulations for Housing Finance prevailing before the issuance of this Circular Letter.
5. The Banks/DFIs may, as per their own discretion and in terms of relevant internal policies, maintain the general provision against housing finance.
6. All other instructions on the subject matter shall, however, remain unchanged.
7. Please acknowledge the receipt.