Typhoon-affected banks get reprieve

Bangko Sentral ng Pilipinas. INQUIRER.net FILE PHOTO

MANILA, Philippines–Banks affected by recent natural calamities have been given a temporary reprieve as regulators approved relief measures to help these lenders get back on their feet.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said it recently approved regulatory relief measures for banks whose operations were affected by Typhoon “Luis” and Tropical Storm “Mario.”

“Similar relief measures were extended to thrift, rural, and cooperative banks in cities and provinces that were affected by natural calamities such as Typhoon “Glenda,” and tropical storm Agaton in 2014,” the BSP said.

The same relief measures, which among others allow banks to exclude loans of storm-hit borrowers from the computation of past-due ratios, were also extended to firms affected by Typhoons’ “Santi,” “Labuyo,” and “Yolanda” last year.

Covering banks in nearly all of Luzon and parts of Visayas, the relief measures were approved on Sept. 25. The areas covered were those on the list of badly affected provinces provided by the National Disaster Risk Reduction and Management Council (NDRRMC).

Among the measures for thrift, rural and cooperative banks are the exclusion of existing loans of borrowers in affected areas from the computation of past-due ratios, and the reduction to 1 percent from 5 percent of the BSP’s required general loan-loss provision for restructured loans of borrowers in the affected areas.

The BSP said it would also waive penalties on legal reserves deficiencies of thrift, rural and cooperative banks in affected areas. A moratorium on monthly payments due to the BSP for banks under rehab would also be implemented.

Banks will also be allowed to provide financial assistance to their officers and employees who were affected by the calamity, including benefits and other forms of assistance that may not be within the scope of the existing BSP-approved fringe benefits.

The BSP said it would also grant a 60-day grace period for the settlement of outstanding rediscounting obligations to the central bank. Rediscounting loans may also be restructured, on a case-to-case basis.