The Bangko Sentral ng Pilipinas is granting thrift, rural and cooperative banks temporary regulatory relief measures to enable them to assist and ease the financial burden of customers adversely affected in August by typhoon “Mina.”
Eligible for the relief measures are those in the areas identified by the National Disaster Risk Reduction and Management Council on September 5, 2011. These are: Navotas City in the National Capital Region; Abra, Apayao, Benguet, Kalinga and Mountain Province in the Cordillera Autonomous Region; Ilocos Norte, Ilocos Sur, La Union and Pangasinan in Region I; Cagayan, Isabela and Nueva Vizcaya in Region II; Tarlac and Zambales in Region III; Albay in Region V; and Iloilo and Negros Occidental in Region VI.
As approved on October 6 by the Monetary Board, the BSP’s policy making body, the temporary relief measures 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 5 percent general loan loss provision to 1 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;
- Allowing banks to provide financial assistance to their officers and employees who were affected by the calamity including assistance that may not be within the scope of the existing BSP-approved Fringe Benefit Program;
- Granting of a 60-day grace period to settle outstanding rediscounting obligations as of August 25, 2011 with the BSP of all rediscounting banks in the affected areas; and
- Allowing banks to restructure with the BSP, on a case-to-case basis, outstanding rediscounted loans of borrowers affected by the calamity.
Similar relief measures were extended by the BSP to thrift and rural/cooperative banks in cities and provinces that were affected by landslide, flooding and typhoons such as Cosme, Frank, Ondoy, Pepeng, Juan and Juaning.
These measures will be in effect for a defined period and covered by additional specific and other prudential conditions.