The Bangko Sentral ng Pilipinas is granting regulatory and rediscounting relief measures to banks with head offices and/or branches located in areas which were devastated by Typhoon “Glenda” based on Situational Report dated 24 July 2014 of the National Disaster Risk Reduction and Management Council (NDRRMC) as follows:
National Capital Region
Caloocan City, Las Piñas City, City of Manila, Malabon City, Mandaluyong City, Marikina City, Muntinlupa City, Navotas City, Parañaque City, Pasay City, Pasig City, Quezon City, Taguig City and Valenzuela City
Ilocos Norte and Pangasinan
Aurora, Bataan, Bulacan, Pampanga, Tarlac and Zambales
Batangas, Cavite, Laguna, Quezon and Rizal
Marinduque, Occidental Mindoro, Oriental Mindoro and Romblon
Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon
Eastern Samar, Leyte, Northern Samar and Western Samar
Similar relief measures were extended by the BSP to thrift and rural/cooperative banks in cities/provinces that were affected by natural calamities such as Typhoons Yolanda, Santi, Labuyo and southwest monsoon (Habagat) rains enhanced by Tropical Storm Maring, and Magnitude 7.2 Earthquake in Sagbayan, Bohol in 2013 and Tropical Depression Agaton in January 2014.
As approved on 01 August 2014 by the Monetary Board, the BSP’s policy-making body, the temporary relief measures include:
For Thrift Banks/Rural Banks/Cooperative Banks
a) Excluding existing loans of borrowers in affected areas from the computation of past due loan ratios provided these are restructured or given relief;
b) Reducing the five percent general loan loss provision to one percent for restructured loans of borrowers in the affected areas;
c) Non-imposition of penalties on legal reserves deficiencies of TBs/RBs/Coop Banks with head office and/or branches in the affected areas;
d) Moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs;
e) 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 individuals and businesses directly affected by the calamity; and
f) Non-imposition of monetary penalties for delays in the submission of supervisory reports.
For All Banks
a) 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
a) Granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 14 July 2014 with the BSP of all rediscounting banks in the affected areas; and
b) 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.