Last September, the Monetary Board approved enhancements to bank reportorial requirements on exposures to the real estate sector and to infrastructure projects. More granular information are to be submitted for the BSP to better monitor the extent of bank exposure to real estate and infrastructure projects. We are ready to implement appropriate macro-prudential measures as the situation may require.
Valuation gains on assets – which can on occasion be substantial – contribute to profits, but are only available to the Commonwealth as a dividend when realised. Unrealised gains are retained in reserves against the possibility of future valuation losses.