BSP grants relief to ‘Maring’-affected banks, financial institutions

Bangko Sentral ng Pilipinas (File photo / Philippine Daily Inquirer)

Banks as well as non-bank financial institutions in three regions affected by the onslaught of tropical storm “Maring” in September” can avail of temporary regulatory and rediscounting relief from the Bangko Sentral ng Pilipinas (BSP).

In a statement Sunday, the BSP said the relief measures would cover banks and non-banks with quasi-banking functions with head offices and/or branches/extension offices/microfinance-oriented banking offices in the following areas: cities of Malabon, Manila, Marikina, Navotas, San Juan, Taguig and Valenzuela in the National Capital Region; provinces of Bulacan and Zambales in Region 3; and Batangas, Cavite, Laguna, Quezon and Rizal provinces in Region 4.

The specific temporary relief measures for cooperative banks, rural banks, thrift banks as well as non-bank financial institutions with quasi-banking functions, as approved last Sept. 28 by the Monetary Board, the BSP’s highest policymaking body, included: exclusion of borrowers’ outstanding loans from the computation of past due ratios, provided these were given relief or restructured; non-imposition of penalties on legal reserves deficiencies; moratorium on monthly payments due to the BSP in the case of banks with ongoing rehabilitation programs; booking of allowance for probable losses on a staggered basis over a five-year period for all types of credits extended to individuals as well as businesses directly affected by the typhoon, subject to BSP approval; as well as non-imposition of monetary penalties for delays in the submission of supervisory reports.

All types of banks, meanwhile, will be allowed to “provide financial assistance to their officers and employees who were affected by the calamity even if the purpose of such assistance is not identified as eligible for credit accommodation under their existing BSP-approved Fringe Benefit Program,” the BSP said.

As for rediscounting banks, they will be entitled to a 60-day grace period to settle with the BSP their outstanding rediscounting obligations as of Sept. 12.

Rediscounting banks will also be allowed to restructure with the BSP their outstanding rediscounted loans of end-user borrowers who were affected by the typhoon, on a case-to-case basis.

“These measures will be in effect for a defined period and covered by additional specific and other prudential conditions,” the BSP said.

The BSP noted that it granted similar relief measures following the onslaught of typhoon “Lawin” and “Nina” as well as due to the prolonged dry spell brought about by El Niño last year. /cbb