BSP provides regulatory relief to banks in calamity-hit areas

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MANILA - The Bangko Sentral ng Pilipinas has given regulatory relief to banks located in areas inundated by floods during the recent southwest monsoon rains.

In a statement, the BSP said its move is aimed at encouraging banks to in turn provide customers similarly affected by the flooding some respite from their financial burden.

The temporary relief that would be given is similar to that extended banks during typhoons Sendong, Pedring, Mina and Juaning in 2011.

In the current disaster, the following areas as identified by the National Disaster Risk-Reduction Management Council as of August 13 would qualify for the regulatory relief:

- In the National Capital Region, they include Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Paranaque, Pasay, Pasig, Pateros, Quezon City, San Juan, Taguig and Valenzuela;

- In Region 1: Ilocos Sur, La Union and Pangasinan;

- In Region 3: Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales;

- In Region 4-A: Batangas, Cavite, Laguna and Rizal; and

- In Region 4-B: Mindoro Oriental and Mindoro Occidental; and

- In Region 6: Iloilo.

The BSP's policy-making Monetary Board approved the relief measures on August 16. They include the following:

- For thrift, rural and cooperative banks:

- Exclude outstanding loans of borrowers in affected areas from the computation of past due ratios, provided the banks restructure these or provide some other relief;

- Reduce the 5 percent loan loss provision to one percent for restructured loans of borrowers in affected areas;

- Non-imposition of penalties on legal reserves deficiencies with head office and/or branches in 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 a maximum period of 5 years for all types of credit extended to individuals and businesses affected by the calamity;

- Non-imposition of monetary penalties for delays in the submission of supervisory reports.

- For all other banks:

- Allowing banks to provide financial assistance to officers and employees affected by the calamity beyond the BSP-approved Fringe Benefits Program.

- For rediscounting banks:

- Grant a 60-day grace period to settle the outstanding rediscounting obligations as of August 6 with the BSP of all rediscounting banks in affected regions; and

- Allowing banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of borrowers in affected areas.

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