Regulatory Alerts2026-06-18
Circular No. 1239: Amendments to Regulations on Salary-Based General Purpose Consumption Loans
The Bangko Sentral ng Pilipinas issued Circular No. 1239 to amend regulations governing Salary-Based General-Purpose Consumption Loans under the Manual of Regulations for Banks and Non-Bank Financial Institutions. The directive establishes strict credit granting policies, including comprehensive borrower assessments, a maximum seven-year loan tenor, and specific controls for loan renewals and takeouts to ensure sound credit risk management. Additionally, the circular updates the Financial Reporting Package definitions and reporting schedules to accurately classify these loans and track those granted to Department of Education borrowers under the Automatic Payroll Deduction System.
Share