363-A LIMITS ON REAL ESTATE EXPOSURES AND OTHER REAL ESTATE PROPERTY OF UBS/KBS.
a. Real Estate Loan Limit. Total real estate loans of UB/KBs, excluding Items “(1)” to “(4)” below, shall not exceed twenty percent (20%) of the total loan portfolio, net of interbank loans:
(1) Loans extended to individual households for purposes of financing the acquisition, construction, and/or improvement of housing units and acquisition of any associated land that is or will be occupied by the borrower, regardless of amount;
(2) Loans extended to land developers/ construction companies for the purpose of development and/or construction of socialized and low-cost residential properties as defined under existing guidelines of the HUDCC for the implementation of government housing programs, which are intended for sale to individual households;
(3) Loans to the extent guaranteed by the HGC; and
(4) Loans to the extent collateralized by non-risk assets under existing regulations.
For this purpose, real estate loans shall refer to loans granted to:
(a) individual households for the acquisition, construction and/or improvement of housing units and acquisition of any associated land that is or will be occupied by the borrower, including loans granted to bank officers and employees for the same purpose which are covered by bank’s fringe benefit plan and which plan was approved by the Monetary Board; and
(b) land developers/construction companies and other borrowers for the acquisition and development of land and/or construction of buildings and structures, including housing units for sale/lease and/ or for use in retail/wholesale, manufacturing or other income-generating purposes, including loans for the land development and construction of residential properties.
|Housing Units||Price Ceiling|
|Level 1-A (Socialized)||450,000 and below|
|Level 1-B||Above 450,000 to P500,000|
|Level 2||Above P500,000 to 1,700,000|
|Level 3||Above 1,700,000 to P3,000,000|
or in such other amounts which HUDCC may prescribe in the future for said housing units.
b. Real Estate Stress Test (REST) Limits. A prudential limit is set for real estate exposures and other real estate property of UBs/KBs. Real estate exposures shall refer to:
(1) Real estate loans (RELs), which shall consist of:
(a) Residential real estate loans to individual households for occupancy categorized under the following types of housing segments:
(i) Socialized Housing;
(ii) Low-Cost Housing;
(iii) Mid-End Housing; and;
(iv) High-End Housing; and
(b) Commercial real estate loans, which shall refer to loans granted to the following:
(i) individuals (including sole proprietorships);
(ii) land developers/construction companies; and
(iii) other corporate borrowers, such as
(aa) real estate brokers;
(bb) real estate lessors;
(cc) property management companies;
(dd) holding companies; and
for purposes of financing real estate activities;
(2) Investments in debt securities issued by land developers/construction companies and other corporate borrowers, such as real estate brokers, real estate lessors, property management companies, for purposes of financing real estate activities; and
(3) Investments in equity securities issued by land developers/construction companies and other corporate borrowers, such as real estate brokers, real estate lessors and property management companies, for purposes of financing real estate activities. Equity securities issued by holding companies are likewise covered, if proceeds from the issue shall be/has been invested by the holding company in its subsidiary corporation/s that is/are engaged in real estate activities.