MORNBFI Vol. 1 - Planters Development Bank

APP. Q-1008.12.31E. Accounts Receivable1. Accounts receivable arising fromloan and investment accounts stilluncollected after six (6) months from thedate such loans or loan installments havematured or have become past due shall beprovided with a 100% allowance foruncollected accounts receivable.2. All other accounts receivableshould be classified in accordance with ageas follows, unless there is good reason fornon-classification:No. of Days Outstanding Classification61 - 180 Substandard181 - 360 Doubtful361 or more LossThe classification according to age ofaccounts receivable should be used inclassifying other risk assets not coveredabove. However, their classification shouldbe tempered by favorable informationgathered in the review.F. Accrued Interest Receivable1. Accrued interest receivable onloans or loan installments still uncollectedafter three (3) months from the date suchloans or loan installments have matured orhave become non-performing shall beprovided with a 100% allowance foruncollected interest on loans.2. All other accrued interest receivableon loans or loan installments shall beclassified similar to the classification of theirrespective loan accounts.III. Allowance for probable losses. Anallowance for probable losses on the loanaccounts should be set up as follows:A. Specific allowanceClassification Allowance (Percent)1. Unclassified 02. Loans Especially Mentioned 53. Substandard(a) Secured 10(b) Unsecured 254. Doubtful 505. Loss 100B. General allowance. In addition to theallowance for probable losses requiredunder Item "A", a general provision for loanlosses shall also be set up as follows:1. Five percent (5%) of the outstandingbalance of unclassified restructured loansless the outstanding balance of restructuredloans which are considered non-risk underexisting laws, rules and regulations; and2. One percent (1%) of the outstandingbalance of unclassified loans other thanrestructured loans less loans which areconsidered non-risk under existing laws,rules and regulations.The general loan loss provision shall becomputed as follows:For Loans Not RestructuredGross Loan Portfolio Pxxx(Excluding Restructured Loans)Less:Classified Loans(based on latest BSP examination)Loans especially mentioned P xxxSubstandardSecuredxxxUnsecuredxxxDoubtfulxxxLoss xxx xxxUnclassified LoansPxxxLess: Loans considered non-riskunder existing regulationsxxxLoan Portfolio, net of exclusionsPxxxGeneral Loan Loss Provision(1% of net loan portfolio) PxxxFor Restructured LoansRestructured Loans (Gross)PxxxLess: Classified Loans(based on latest BSP examination)Loans especially mentioned PxxxSubstandardSecuredxxxUnsecuredxxxDoubtfulxxxLoss xxx xxxUnclassified Restructured Loans PxxxLess: Loans considered non-riskunder existing regulations xxxRestructured Loans, net of exclusions PxxxGeneral Loan Loss Provision(5% of net restructured loans) PxxxThe excess of the booked general loanloss provisions over the amount requiredManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-10 - Page 5