BSP oks relief for banks in typhoon-hit areas
The Bangko Sentral ng Pilipinas approved the grant of “additional regulatory relief measures” for banks with head offices and branches located in areas devastated by powerful storms late last year.
In a memorandum signed by Governor Eli Remolona Jr. on Jan. 30, the BSP said the relief would also apply to banks with end-user borrowers in areas battered by Tropical Storm “Kristine” and Super Typhoons “Leon” and “Ofel”.
Eligible banks must notify the BSP, through the supervising department, of the intention to avail the regulatory relief measures.
“These relief measures are aimed at enabling banks to carry on with their business operations after extreme weather events and extend equivalent financial relief to their affected borrowers,” the memo read.
The BSP said lenders may avail of the usual regulatory relief package specified in the manual of regulations for banks, like allowing banks to extend financial aid to affected officers and the non-imposition of penalties for delayed submission of reports, among others.
But the memo provided “enhanced” provisions. For one, the reckoning period of the regulatory relief measures will be on the respective dates of the landfall of the typhoons in affected areas, instead of the date of declaration of state of calamity.
For financial assistance provided to typhoon-hit officers, the request for post-approval of the grant of loans, advances or any other forms of credit accommodations must be submitted to the BSP on or before March 31, longer than the usual period of 30 calendar days.
No penalties will be imposed on legal reserve deficiencies, if any, starting from reserve week of Oct. 18, 2024 up to six months thereafter.
