HOME  ABOUT THE BANK  MONETARY POLICY  BANKING SUPERVISION  PAYMENTS & SETTLEMENTS  STATISTICS  FEEDBACK CORNER
   BSP NOTES & COINS  MONETARY OPERATIONS  LOANS-CREDIT & ASSET MGT  PUBLICATIONS & RESEARCH  REGULATIONS  PROCUREMENT

Feedback Corner

Publications and Research

Media Releases

BSP Grants Regulatory Relief to Banks, other Financial Institutions Affected by Typhoon "Josie"

08.22.2018

The Bangko Sentral ng Pilipinas (BSP) is granting temporary regulatory and rediscounting relief measures to banks/non-bank financial institutions with quasi-banking functions (NBQBs) with head offices (HOs) and/or regular branches/branch-lite/microfinance-oriented branches located in the areas which were devastated by Tropical Cyclone “Josie”, based on Situation Report No. 20 dated 27 July 2018 of the National Disaster Risk Reduction and Management Council. The identified areas are the following:

Region

Areas

Region I (Ilocos Region)

Ilocos Norte, Ilocos Sur, La Union, and Pangasinan

Cordillera Administrative Region

Abra, Benguet, Ifugao, Kalinga, and Mountain Province

Region II (Cagayan Valley)

Cagayan

Region III (Central Luzon)

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

Region IV-A (CALABARZON)

Cavite, Laguna, Batangas, Rizal, and Quezon

Region IV-B (MIMAROPA)

Oriental Mindoro, and Occidental Mindoro

Region VI (Western Visayas)

Aklan, Antique, Iloilo, and Negros Occidental

National Capital Region

Cities of Malabon, Marikina, Parañaque, Pasig, Quezon, and Valenzuela

The Monetary Board, the BSP’s policy-making body, approved on 10 August 2018 the following temporary relief measures that shall be made available to banks/NBQBs which will apply for the same:

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

a. Exclusion of loans of borrowers in affected areas from the computation of past due loan ratio provided that appropriate and prudent operational control measures are adopted;

b. Non-imposition of penalties on legal reserve deficiencies of TBs/RBs/Coop Banks/NBQBs with HOs and/or branches/branch-lite/microfinance-oriented branches in the affected areas;

c. Moratorium without penalty on monthly payments due to BSP for banks with ongoing rehabilitation programs;

d. Subject to prior BSP approval, booking of allowances for probable losses on a staggered basis over a maximum period of five years for all types of credits extended to individuals and businesses directly affected by the calamity; and

e. Non-imposition of monetary penalties for delays incurred in the submission of all supervisory reports.

For All Banks

f. Allowing banks to provide financial assistance to their officers and employees who were affected by Tropical Cyclone ”Josie” even if the purpose of such assistance is not identified as eligible for credit accommodation under their existing BSP-approved Fringe Benefit Programs.

For All Rediscounting Banks

g. Upon application, granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 21 July 2018 with BSP; and

h. Allowing the rediscounting banks to restructure with BSP, on a case-to-case basis, the outstanding rediscounted loans of their end-user borrowers affected by Tropical Cyclone “Josie”.

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

The BSP provides regulatory relief to BSP-supervised financial institutions affected by natural calamities to assist in their recovery and allow them to resume normal operations.  Similar temporary relief measures were extended by the BSP for those affected by Tropical Storms “Maring” in 2017 and “Nina” in late-2016.

RSS Subscribe for updates

Archives