BSP extends relief to flood-hit banks
MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) on Friday said it is extending regulatory relief to banks affected by the massive flooding caused by the southwest monsoon.
Among the measures for thrift, rural and cooperative banks, the Monetary Board (MB) reduced the general loan provision to 1% for restructured loans of affected borrowers; non imposition of penalties on legal reserves deficiencies with head office and/or branches; and moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs.
For all banks, the MB is allowing them to provide financial assitance 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;
For all rediscounting banks: it granted a 60-day grace period to settle the outstanding rediscounting obligations as of August 6 this year and allowed banks to restructure with the BSP its outstanding rediscouted loans of borrowers affected by the calamity.
Relief measures will be extended for banks in the following areas:
NCR: Caloocan, Las Pinas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Paranaque, Pasay, Pasig, Pateros, Quezon City, San Juan, Taguig and Valenzuela.
Region I: Ilocos Sur, La Union and Pangasinan
Region III: Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales
Region IV-A: Batangas, Cavite, Laguna and Rizal
Region IV-B: Occidental Mindoro and Oriental Mindoro, and Iloilo for Region VI.
This is the fourth time the BSP is extending similar relief measure to thrift and rural/cooperative banks in cities/provinces. It had earlier given relief measures for banks affected by Sendong, Pedring, Mina and Juaning.