Amendments to the Manual of Regulations for Non-Bank Financial Institutions Applicable to Non-Stock Savings and Loan Associations

February 28, 2013BSP CIRCULAR NO. 789-13SUBJECT:Amendments to the Manual of Regulations for Non-Bank Financial Institutions Applicable to Non-Stock Savings and Loan Associations The Monetary Board, in its Resolution No. 165 dated 25 January 2013, approved the amendments to the Manual of Regulations for Non-Bank Financial Institutions applicable to Non-Stock Savings and Loan Associations (MORNBFI-S) and adopted additional regulations related thereto, as follows: SECTION 1. New provisions of Section 4301S are hereby inserted in the MORNBFI-S Regulations, while its existing provisions on Authority, Loan Limits, Maturity of Loans are amended and transferred to the new Subsection 4301S.1, as follows:"Sec. 4301S. Lending Policies. — It shall be the responsibility of the board of trustees of NSSLAs to formulate written policies on the extension of credit. Well-defined lending policies and sound credit risk management practices are essential if NSSLAs are to perform their lending function effectively and minimize the risk inherent in any extension of credit. The responsibility should be approached in a way that will provide assurance to the members, other stakeholders and the supervisory authority that...