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Loans and Receivables are stated at amortized cost computed as the outstanding principal balances
reduced by loans and receivables discounts and related allowance for credit losses, broken down as
follows:
The above accounts earns interest of 6% for Hold-Out Deposits, 10% for loans secured by REM, 14% for
loans secured by CHM and 24% for Clean Loans. Maturity period of the above financial instruments is
presented in Note 4 of the Notes to Financial Statements.
The Allowance for Credit Losses of P 14,201,769.50 is composed of general and specific loan loss
provisions amounting to P 1,131,878.59 and P 13,069,890.91 respectively. The bank is required to set-up
loan loss provision in accordance with the BSP Manual of Regulations (Sec.X302.1 Appendix 18).
Below is the detailed computation of allowance for credit losses, both specific and general provision:
Specific Provision
Rate Load Balance Required Allowance
General Provision
The following table presents the reconciliation of the movement of the allowance for credit losses for
loans and receivables:
The management believes that the bank had substantially complied with the loan loss provisioning as
required by the Bangko Sentral ng Pilipinas.
The total secured loans of the bank are further classified as follows: