The central bank is preparing a relief package that will help typhoon-hit banks get their operations back to normal which, in turn, would allow lenders to help facilitate reconstruction efforts in areas affected by Typhoon Yolanda.
Bangko Sentral ng Pilipinas (BSP) Deputy Governor Nestor A. Espenilla Jr. said the regulator was still waiting for the government’s final assessment of the damage that was caused by the strongest storm to ever hit the country.
“There are many logistical difficulties, but BSP will be working closely with our affected banks to help restore operations at the soonest possible time,” he said in a speech on Monday.
Speaking before the Rural Bankers Association of the Philippines (RBAP), Espenilla said the BSP’s main priority was the normalization of basic banking services in areas affected by the typhoon.
He said this would allow the public to withdraw their funds from banks, and later, get loans to help rebuild their homes and businesses.
“You can expect immediate deployment of our standard regulatory relief package designed precisely to help cope with calamities,” Espenilla said.
Following natural calamities in the past, the BSP has relaxed its reporting requirements and the computation of loans of borrowers in affected areas from the accounting of total nonperforming loans of banks.
The BSP also liberalizes requirements for its rediscounting window to allow banks to access liquidity to get their operations back to normal. Loss provisions for soured loans are also usually relaxed.
“But given the scale of the recent devastation, from the one-two punch of the Bohol earthquake to Typhoon Yolanda, we will need to actively think of additional measures to bolster our support,” Espenilla said. He declined to give details on the additional relief measures being prepared for banks that need them.
These relief measures will be granted to banks located in areas under a state of calamity, as determined by the National Disaster Risk Reduction Management and Coordinating Council.