BSP Grants Regulatory Relief to Banks/Non-Bank Financial Institutions with Quasi-Banking Functions (NBQBs) Affected by Typhoon “Nina”

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 branches/extension offices (EOs)/microfinance-oriented banking offices (MBOs) located in the areas which were devastated by Typhoon “Nina”, based on Situation Report No. 12 dated 2 January 2017 of the National Disaster Risk Reduction and Management Council, as follows:

Region Areas
IV-A Batangas, Cavite, Laguna, Quezon, Rizal
IV-B Marinduque, Occidental Mindoro, Oriental Mindoro, Romblon
V Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate, Sorsogon
VIII Northern Samar

Similar relief measures were extended by the BSP to banks/NBQBs with HOs and/or branches/EOs/MBOs in provinces/cities that were affected by natural calamities, such as last year’s El Niño Phenomenon and Typhoon “Lawin”.

As approved on 12 January 2017 by the Monetary Board, the BSP’s policy-making body, the temporary relief measures shall be made available to banks/NBQBs which will apply for the same:

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

a. Excluding outstanding loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief;

b. Non-imposition of penalties on legal reserves deficiencies of TBs/RBs/Coop Banks/NBQBs with HOs and/or branches/EOs/MBOs in the affected areas;

c. Moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs;

d. Subject to BSP approval, booking of allowance for probable losses on a staggered basis over a maximum period of 5 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 in the submission of supervisory reports.

For All Banks

f. 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.

For All Rediscounting Banks

g. Granting of a 60-day grace period to all rediscounting banks in the affected areas to settle their outstanding rediscounting obligations as of 25 December 2016 with the BSP; and

h. 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.