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BSP Grants Regulatory Relief to Banks Affected by Typhoon “Santi”

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 Typhoon “Santi” which devastated several parts of the country from 11 to 13 October 2013. Eligible for the relief measures are those in the following areas identified by the National Disaster Risk Reduction and Management Council on 14 October 2013:

Region I : Pangasinan
Region II : Isabela, Nueva Vizcaya and Quirino
Region III : Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales
Region IV-A : Laguna and Rizal

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 Southwest Monsoon (Habagat), typhoons Helen, Gener, Pablo, and tropical depression “Quinta” in 2012, and typhoon “Labuyo” and Southwest Monsoon (Habagat) enhanced by Tropical Strom “Maring” in 2013.

As approved on 17 October 2013 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 ratios provided these are restructured or given relief;

b) Reducing the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in the affected areas;

c) Non-imposition of penalties on legal reserves deficiencies 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 (5) years for all types of credit extended to individual and businesses directly affected by the calamity;

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 13 October 2013 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.