MANILA, Philippines - Banks affected by the 7.2-magnitude earthquake that hit the central part of the Visayas have been granted regulatory relief by the Bangko Sentral ng Pilipinas (BSP).
The central bank said these measures, approved by the policymaking Monetary Board last week, are expected to help the affected banks and their clients following the recent calamity.
The earthquake hit central Visayas last Oct. 15 and the death toll has since risen to 222, according to a report by the National Disaster Risk Reduction and Management Council.
The calamity has destroyed P2.2 billion worth of roads, bridges, schools, hospitals and other buildings in the affected provinces, the same report read.
Banks eligible for the relief measures are those located in the provinces of Bohol, Cebu, Siquijor, Guimaras, Iloilo and Negros Occidental.
For thrift, rural and cooperative banks, the BSP has waived monetary penalties on deficiencies on legal reserves and for the delays in the submission of supervisory reports.
Existing loans of individuals will also be excluded from the computation of past due ratios as long as these are restructured or given relief, the BSP said, adding the general loan loss provision will be decreased to one percent from five percent for restructured loans.
A moratorium on monthly payments due to the BSP will also be imposed for banks undergoing rehabilitation programs and the booking of allowance for probable losses on a staggered basis over a maximum of five years for all types of credit extended shall also be allowed, subject to BSP approval.
For all types of banks, the BSP has allowed them to give financial assistance to officers and employees affected by the earthquake.
Meanwhile, for rediscounting banks, the central bank gave a 60-day grace period to settle outstanding obligations as of Oct. 15 and allowed them to restructure with the BSP current loans of affected borrowers.