Updated: Memorandum on BSP regulatory relief

For rural banks affected by storm Sendong, please be informed that the Bangko Sentral ng Pilipinas has approved the granting of regulatory relief measures on December 29, 2011.  As stipulated in the press release, posted on the BSP website http://www.bsp.gov.ph/publications/media.asp?id=2776, the temporary measures include the following:

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

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

3. Non-imposition of penalties on legal reserves deficiencies with head office and/or branches  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 maximum of five (5) years for all types of credit extended to individual and businesses directly affected by the calamity;

6. Non-imposition of monetary penalties for delays in the submission of supervisory reports;

7. 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;

8. Granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 15 December 2011 with the BSP of all rediscounting banks in the affected areas; and

9. Allowing banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.

For more details and latest updates, please view the media release bulletin of the BSP. To secure a copy of the issued memorandum, kindly download the attached pdf file  m001

Thank you.