However, banks may extend financing to JV partners or to buyers on arms length commercial basis. Lastly, banks are not allowed to recognize income out of the properties they contributed to the joint venture regardless of the agreed valuation of said properties in the JVA. They are only allowed to recognize income upon receipt of the proceeds from the sale of the developed properties.
Proper accounting is also required. Moving on, we also continue to seek closer alignment of existing regulations with international standards to make regulatory policies more responsive to the growing competitiveness and sophistication of the financial services industry. In particular, we are focusing on strengthening corporate governance, risk management, and capital adequacy in our banks. This will be complemented with effective and efficient enforcement.