Lenders’ clearing, settlement accounts excluded from borrower’s limit rule

The Bangko Sentral ng Pilipinas (BSP) has excluded the exposure of banks and quasi-banks in clearing and settlement accounts from the single borrower’s limit (SBL) rules to promote the smooth function of financial markets.

Under the SBL rule, the total amount of loans, credit accommodations and guarantees that may be extended by a bank to any person, partnership, association, or corporation should not exceed 25 percent of the lender’s net worth.