Stress tests not meant to restrict real estate lending, BSP clarifies

The central bank clarified that it is not restricting banks’ real estate lending with the issuance of a directive requiring banks to undergo stress tests on their property loan portfolios, emphasizing that the overall situation in the property sector remains manageable.

According to the central bank, the pre-emptive macro-prudential policy measure announced last week was only meant to ensure that banks are well capitalized to absorb any “stressed conditions” that may arise within the sector.