BSP grants relief to banks in areas devastated by typhoon Mina

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has extended regulatory relief to banks with head offices and branches located in areas including the National Capital Region (NCR) devastated by typhoon Mina last August.

BSP Deputy Governor Nestor Espenilla Jr. has issued Memorandum 2011 – 055 granting regulatory relief to banks in NCR, Cordillera Autonomous Region (CAR) as well as regions I, II, III, V, and VI that were affected by typhoon Mina.

Areas entitled to the regulatory relief identified by the National Disaster Risk Reduction and Management Council include Navotas City in NCR, Abra, Apayao, Benguet, Kalinga, Mountain Province, Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Cagayan, Isabela, Nueva Vizcaya, Tarlac, Zambales, Albay, Iloilo, and Negros Occidental.

Espenilla said the BSP approved the regulatory relief under Resolution 1508 last Oct. 6 to enable banks to assist and ease the financial burden of bank customers adversely affected by typhoon Mina.

Under the relief measures, Espenilla pointed out that thrift, rural, and cooperative banks could now exclude existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief and at the same time reduce the five percent general loan loss provision to one percent for restructured loans of borrowers in the affected areas.

Other measures include the non-imposition of penalties on legal reserves deficiencies with head office and branches in the affected areas from Sept. 1 to Feb. 23 next year as well as the imposition of a moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs until Feb. 29.

Subject to BSP approval, he added that banks would be allowed to book allowance for probable losses on a staggered basis over maximum of five years for all types of credit extended to individual and businesses directly affected by the calamity;

Likewise, the BSP would not impose monetary penalties on banks in the affected areas for delays in the submission of supervisory reports.

Banks would also be allowed to provide financial assistance 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.

Likewise, the central bank would grant a 60-day grace period to settle the outstanding rediscounting obligations as of July 25 with the BSP of all rediscounting banks in the affected areas.