CEBU, Philippines - The Bangko Sentral ng Pilipinas will start requiring universal, commercial and thrift banks a quarterly report on approved housing loans.
BSP said the information from housing loans granted by banks will help it come up with a residential real estate price index (RREPI).
“The construction of RREPI based on banks’ approved housing loan applications is a first in the Philippines and is expected to provide a valuable tool in assessing the real estate and credit market conditions in the country,” the central bank noted in a statement. It issued a circular to banks on this mandate.
BSP explained that available data on property prices is one of the information gaps identified in the Group of Twenty (G20) report following the global financial crisis, and is required among member countries of International Monetary Fund.
Sought for comment yesterday, Cebu Bankers Club President Maximo Eleccion said banks will comply with BSP’s mandate.
“The CBC is excited to have and see the residential real estate price index, these are the index numbers measuring the rate at which the price of residential properties are changing over time,” Eleccion told The FREEMAN.
He added there’s a need to adopt a common international methodical framework in coming up with RREPI.
Among the details needed in the report include: month of loan granted or booked; location and type of property; appraised value of housing unit per square meter; acquisition cost; total appraised value of property; total area of lot; and name of developer.
“Data from banks’ housing loan applications shall cover areas in the National Capital Region and areas outside the NCR,” BSP said.
The quarterly report, BSP said, must be submitted not later than the 20th banking day from the end of the reference quarter.
BSP starts requiring reports covering the second and third quarters of 2015 and are to be submitted on or before December 29, 2015.
The fourth quarter report will follow the prescribed submission on the 20th banking day from the reference quarter. — Carlo S. Lorenciana (FREEMAN)