BSP grants regulatory relief to banks in quake-hit areas
MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) granted regulatory and rediscounting relief measures to banks with head offices and branches in areas affected by the recent earthquake in the Visayas region.
The Monetary Board, the BSP's policy-making body, last October 25 approved temporary relief measures for banks in Region VI (Guimaras, Iloilo, Negros Occidental) and Region VII (Bohol, Cebu, Siquijor).
Among the temporary relief 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 provided these are restructured; reduction of the 5% general loan loss provision to 1% for restructured loans of borrowers in affected areas; non-imposition of penalties or legal reserves deficiencies for banks with head office or branches in affected areas; and moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs.
All banks are allowed to provide financial assistance to their officers and employees who were affected by the disaster.
For all rediscounting banks, the BSP granted a 60-day grace period to settle the outstanding rediscounting obligations as of October 15, 2013.
The BSP also allowed banks to restructure with the BSP, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.
The death toll in the magnitude 7.2 earthquake that hit Visayas last October 15 has reached 218, the National Risk Reduction and Management Council (NDRRMC) said. A total of 204 people died in Bohol while 13 died in Cebu. One died in Siquijor.