NEWSFLASH

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CENTRAL BANK TO CHECK BANK CREDIT, AUTO LOANS

Manila, Oct. 31, 1997 - Banks will soon be required to submit quarterly reports on their auto loans and credit card receivables. The new rule was made public by the central bank yesterday.

The central bank statement said the Monetary Board decided to take the action "as part of its ongoing efforts to strengthen the banking system and prevent future problems."

"Although the situation remains far from being critical, the Board nonetheless noted a trend increase in past due auto loans and credit car receivables relative to bank loans between 1994 and 1996," the announcement explained.

In a related development, Ricardo Lirio, Bangko Sentral ng Pilipinas (central bank) managing director for examination and supervision said the central bank is considering the imposition of administrative ceilings on the exposure of banks on consumer loans.

He added that "in a crisis like what we re experiencing now, difficulties in collection and dividend losses in these consumer loans are bound to occur.

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