The Bangko Sentral ng Pilipinas is granting regulatory relief measures to thrift, rural, and cooperative banks to enable them to similarly assist and ease the financial burden of bank customers adversely affected by tropical storm “Sendong” which devastated several parts of the country last 15 to 21 December 2011.
Eligible for the relief measures are those in the following areas identified by the National Disaster Risk Reduction and Management Council on 21 December 2011: Region V: Catanduanes; Region VI: Capiz; Region VII: Bohol and Negros Oriental; Region IX: Zamboanga del Norte; Region X: Bukidnon, Lanao del Norte, Misamis Occidental and Misamis Oriental; Region XI: Compostela Valley and Davao del Norte; Region XIII (CARAGA): Agusan del Sur and Surigao del Sur; and Autonomous Region in Muslim Mindanao (ARMM): Lanao del Sur.
Similar relief measures were extended by the BSP to thrift and rural/cooperative banks in cities/provinces that were affected by landslide/flooding last September 2011 and previous typhoons such as Frank, Ondoy, Pepeng, Juaning, Mina and Pedring.
As approved on 27 December 2011 by the Monetary Board, the BSP’s policy-making body, the temporary relief measures include:
1. Excluding existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief;
2. Reducing the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in the affected areas;
3. Non-imposition of penalties on legal reserves deficiencies with head office and/or branches in the affected areas;
4. Moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs;
5. Subject to BSP approval, booking of allowance for probable losses on a staggered basis over maximum of five (5) years for all types of credit extended to individual and businesses directly affected by the calamity;
6. Non-imposition of monetary penalties for delays in the submission of supervisory reports;
7. Allowing 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;
8. Granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 15 December 2011 with the BSP of all rediscounting banks in the affected areas; and
9. Allowing 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.