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BSP Grants Regulatory Relief to Banks Affected by Typhoon "Lawin"

12.16.2016

The Bangko Sentral ng Pilipinas (BSP) is granting temporary regulatory and rediscounting relief measures to banks with head offices (HOs) and/or branches/extension offices/microfinance-oriented banking offices (MBOs) located in the areas which were devastated by Typhoon “Lawin”, based on Situation Report No. 9 dated 25 October 2016 of the National Disaster Risk Reduction and Management Council, as follows:

Region

Areas

I

Ilocos Norte, Ilocos Sur, La Union, and Pangasinan

II

Cagayan, Isabela, Nueva Vizcaya, and Quirino

III

Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, and Zambales

IV-A

Batangas, Quezon, and Rizal

V

Camarines Norte and Sorsogon

Cordillera Autonomous
Region (CAR)

Abra, Apayao, Benguet, Ifugao, Kalinga, and Mountain Province

Similar relief measures were extended by the BSP to banks with HOs and/or branches/extension offices/MBOs in provinces/cities that were affected by natural calamities, such as last year’s Tropical Storm “Seniang”, and Typhoons “Ruby”, “Ineng”, and “Lando” and this year’s El Niño Phenomenon. 

As approved on 11 November 2016 and 1 December 2016 by the Monetary Board, the BSP’s policy-making body, the temporary relief measures shall be made available to banks:

For Thrift Banks (TBs)/Rural Banks (RBs)/Cooperative (Coop) Banks

  1. Excluding outstanding loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief;
     
  2. Reducing the 5% general loan loss provision to 1% for restructured loans of borrowers in the affected areas;
     
  3. Non-imposition of penalties on legal reserves deficiencies of TBs/RBs/Coop Banks with HOs and/or branches/extension offices/MBOs 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 a maximum period of five (5) years for all types of credits extended to individuals and businesses directly affected by the calamity; and
     
  6. Non-imposition of monetary penalties for delays in the submission of supervisory reports.

For All Banks

  1. 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 their existing BSP-approved Fringe Benefit Program, subject to subsequent regularization.

For All Rediscounting Banks

  1. Granting of a 60-day grace period to all rediscounting banks in the affected areas to settle their outstanding rediscounting obligations as of 19 October 2016 with the BSP; and
     
  2. Allowing banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of end-user borrowers affected by the calamity.

 These measures will be in effect for a defined period and covered by additional specific and other prudential conditions.

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