The Bangko Sentral ng Pilipinas is granting regulatory relief measures to banks to enable them to similarly assist and ease the financial burden of bank customers adversely affected by tropical storm “Helen” and enhanced southwest monsoon which devastated several parts of the country last 13 to 16 August 2012. Eligible for the relief measures are those in the following areas identified by the National Disaster Risk Reduction and Management Council on 19 August 2012:
- Region I: Ilocos Norte, Ilocos Sur, La Union, and Pangasinan
- Region II: (Cagayan Valley) Isabela
- Region III: Zambales
- Region IV-B: Occidental Mindoro
- CAR: Apayao, Benguet, and Mountain Province
Similar relief measures were extended by the BSP to thrift and rural/cooperative banks in cities/provinces that were affected by previous typhoons such as Sendong, Pedring, Mina and Juaning in 2011 and most recently southwest monsoon “Habagat”.
As approved on 23 August 2012 by the Monetary Board, the BSP’s policy-making body, the temporary relief measures include:
For Thrift Banks/Rural Banks/Cooperative Banks
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;
For All Banks
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;
For All Rediscounting Banks
8. Granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 13 August 2012 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.