MANILA – The Bangko Sentral ng Pilipinas is granting regulatory relief measures to banks to enable them in helping ease the financial burden of bank customers adversely affected by southwest monsoon or “habagat”, which devastated many parts of the country.
As approved by the BSP’s Monetary Board Thursday, the temporary relief measures for thrift banks/rural banks/cooperative banks include the exclusion of existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief.
The reduction of 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.
Non-imposition of monetary penalties for delays in the submission of supervisory reports.
For all banks, the MB has allowed them to provide financial assistance to their officers and employees who were affected by the calamity including those assistance measures that may not be within the scope of the existing BSP-approved Fringe Benefit Program.
Meanwhile, the MB has granted a 60-day grace period to settle the outstanding rediscounting obligations as of August 6 with the BSP of all rediscounting banks in the affected areas.
It has also allowed banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted 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