BSP grants regulatory relief for banks in Glenda-hit areas

Posted at 08/12/2014 1:45 PM

MANILA, Philippines - The Bangko Sentral ng Pilipinas said it is granting regulatory and rediscounting relief measures to banks located in areas affected by typhoon "Glenda" last month.

In a statement, the BSP said regulatory relief is extended to banks with head office and branches located in the following areas:

National Capital Region: Caloocan, Las Pinas, Manila, Malabon, Mandaluyong, Marikina, Muntinlupa, Navotas, Paranaque, Pasay, Pasig, Quezon City, Taguig and Valenzuela;
Region I: Ilocos Norte and Pangasinan;
Region III: Aurora, Bataan, Bulacan, Pampanga, Tarlac and Zambales;
Region IV-A: Batangas, Cavite, Laguna, Quezon and Rizal;
Region IV-B: Marinduque, Occidental Mindoro, Oriental Mindoro and Romblon;
Region V: Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate and Sorsogon;
Region VIII: Eastern Samar, Leyte, Northern Samar and Western Samar.

The Monetary Board approved the temporary relief measures last August 1.

Thrift banks, rural banks and cooperative banks can exclude existing loans of borrowers in affected areas from the computation of past due loan ratios, provided these are restructured or given relief.

They can also reduce the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in affected areas.

No penalties will be imposed on delays in submission of supervisory reports, and legal reserves deficiencies of thrift banks, rural baks and cooperative banks in the affected areas.

These banks with ongoing rehabilitation programs will also be given a moratorium on monthly payments due to BSP.

Subject to BSP approval, these banks will be allowed to book allowance for probable losses on a staggered basis over a maximum of 5 years for all types of credit extended to individuals and businesses directly affected by the calamity.

For all banks, they will be allowed to provide financial assistance to their officers and employees affected by "Glenda".

All rediscounting banks will be granted a 60-day grace period to settle outstanding rediscounting obligations as of July 14, 2014 with the BSP. They will also be allowed to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.