Sumary of Real estate critical for BSP policy formulation – Diokno:
- The Bangko Sentral ng Pilipinas takes into account the real sector in formulating its monetary policy.
- THE MANILA TIMES FILE PHOTO The Bangko Sentral ng Pilipinas (BSP) said that the real estate industry is a critical sector in its monetary policy and financial regulation.
- During the Real Estate Brokers Association of the Philippines 43rd Annual National Convention last week, BSP Governor Benjamin Diokno said asset values cause volatility in general price levels and economic production.
- “The BSP anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022,” the Bangko Sentral chief highlighted.
- Residential real estate loans or loans to individuals for own occupancy are exempt from this limit, as are loans to developers or construction companies to finance the development and/or construction of socialized and low-cost housing units in accordance with the national government’s housing program, according to Diokno.
- “Loans to finance public infrastructure are not included in the determination of a bank’s compliance with both of these prudential limits,” the Bangko Sentral head explained.