MANILA - The Bangko Sentral ng Pilipinas said Thursday it raised the real estate loan limit of universal and commercial banks to infuse more liquidity in real estate lending.
The Monetary Board has increased the real estate loan limit of universal and commercial banks to 25 percent from 20 percent, the BSP said in a statement.
"The increase translates to additional liquidity for real estate lending amounting to around P1.2 trillion based on end-March 2020 numbers," the BSP said.
Under BSP regulations, real estate loan limits were set to guard against asset bubbles in the property sector.
The central bank has also cut interest rates for a cumulative 175 basis points this year and lowered the reserve requirement for banks to add liquidity and assist banks during the COVID-19 pandemic.
A surprise 50-basis point cut in June brought interest rates to a record low of 2.25 percent.
The BSP will hold another Monetary Policy Board meeting late Thursday.
Analysts expect the central bank to keep interest rates steady. BSP Gov. Benjamin Diokno earlier said there was "no compelling reason to cut rates immediately despite a steep economic nosedive of 16.5 percent in the second quarter.