Regulations governing securitization were passed into law only in March 2004. An amendatory law was subsequently issued in April 2006 extending the deadline until 2008 for the establishment and registration of special purpose vehicles, and the availability of tax incentives.

The asset-backed securities market in the Philippines is underdeveloped; although some private transactions involving receivables from leases, residential mortgages, credit cards, and airline tickets have been conducted. Metro Rail Transit Corporation completed the largest securitization in the Philippines through the issuance of receivable-backed notes to local institutional investors.

In 1998, the Bangko Sentral ng Pilipinas (BSP) issued guidelines for the securitization of receivables of banks and other financial institutions. Under these guidelines, each receivable securitization deal is subject to BSP approval. The full text of BSP Circular No. 185 can be found by following the link provided below.

The Securitization Act and Special Purpose Act were signed into law in March 2004. These laws set the legislative framework for securitization in the Philippines:

• The Securitization Act of 2004 (Republic Act 9267) seeks to (i) improve the legal standing of securitized issues, (ii) promote securitization in the development of capital markets, and (iii) pursue development of the secondary market for asset-backed securities and other related financial instruments.
• The Special Purpose Vehicle Act of 2002 (Republic Act 9182) sets out the legal, regulatory, and taxation framework for banks and other financial institutions for selling non-performing and acquired assets. The law aims to help institutions securitize their assets by granting tax incentives, or special purpose vehicles, to asset management companies.

The implementing rules and regulations of the Special Purpose Vehicle Act and the full text of the Securitization Act are accessible through the links provided below.

In April 2006, the Special Purpose Vehicle Amendatory Act (Republic Act 9343) was signed into law to extend the deadline until 2008 for the establishment and registration of special purpose vehicles, and the availability of tax incentives.