Friday June 7 2019


News Source: Global Exchanges

Focus: General - Global Exchanges

Type: General

Country: Philippines

Link: https://bit.ly/2EX9urf



On 6th June 2019, the Securities and Exchange Commission (“SEC”), issued a notice in view of the numerous queries entertained by the operating department/s of the SEC with regard to the correct computation of the interest rates imposed by Lending Companies (“LCs”) and Financing Companies (“FCs”).

Adopting BSP Memorandum No. M-2011-040 in the case of LCs and FCs, an effective interest rate(“EIR”) calculation model for a loan, founded on established principles of discounted cash flow analysis, should be based on the actual features thereof.

The Notice was published along with some Illustrations/models of common loan features, which are also present as annexes in the BSP memorandum

Click on the above link for further information.