The Bangko Sentral ng Pilipinas (BSP) is granting regulatory relief measures to banks to enable them to similarly assist and ease the financial burden of customers hit by the recent monsoon rains.
Eligible for the relief measures identified by the National Disaster Risk Reduction and Management Council (NDRRMC) are banks in Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Pateros, Quezon City, San Juan, Taguig and Valenzuela in the NCR; Ilocos Sur, La Union and Pangasinan in Region I; Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales in Region III; Batangas, Cavite, Laguna and Rizal in Region IV-A; Occidental Mindoro and Oriental Mindoro in Region IV-B; and Iloilo in Region VI.
Similar relief measures were extended by the BSP to thrift and rural or cooperative banks in cities and provinces struck by previous typhoons such as “Sendong,””Pedring,” “Mina” and “Juaning” in 2011.
As approved by the Monetary Board on Aug. 16, the temporary relief measures for thrift banks/rural banks/cooperative banks include excluding existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief; reducing the five-percent general loan loss provision to one percent for restructured loans of borrowers in the affected areas; non-imposition of penalties on legal reserves deficiencies with head office and/or branches in the affected areas; moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs; subject to BSP approval, booking of allowance for probable losses on a staggered basis over maximum of five years for all types of credit extended to individual and businesses directly affected by the calamity; and non-imposition of monetary penalties for delays in the submission of supervisory reports.
The BSP allows all banks to provide financial assistance to their officers and employees who were affected by the calamity including those assistance that may not be within the scope of the existing BSP-approved fringe benefit program.
The BSP has granted all re-discounting banks a 60-day grace period to settle the outstanding re-discounting obligations as of Aug. 6 with the BSP; and allows banks to restructure with the BSP, on a case-to-case basis, the outstanding re-discounted loans of borrowers affected by the calamity.
These measures will be in effect for a defined period and covered by additional specific and other prudential conditions.
PNA