By Josine Estuye
MANILA, (PNA) — Banks affected by the recent 7.2 magnitude quake in Central Visayas and Mindanao were granted regulatory and rediscounting relief measures by the Bangko Sentral ng Pilipinas (BSP).
The BSP identified areas which will be covered by the relief as Guimaras, Iloilo, Negros Occidental, Bohol, Cebu, and Siquijor.
Through the regulatory relief, thrift banks, rural banks and cooperative banks, are allowed to implement the following measures:
a) Excluding existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief;
b) Reducing the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in the affected areas;
c) Non-imposition of penalties on legal reserves deficiencies of TBs/RBs/Coop Banks with head office and/or branches in the affected areas;
d) Moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs;
e) Booking of allowance for probable losses on a staggered basis over maximum of five (5) years for all types of credit extended to individual and businesses directly affected by the calamity; and
f) Non-imposition of monetary penalties for delays in the submission of supervisory reports.
For rediscounting banks, the following measures apply:
a) Granting of a 60-day grace period to settle the outstanding rediscounting obligations as of 15 October 2013 with the BSP of all rediscounting banks in the affected areas; and
b) Allowing banks to restructure with the BSP, on case to case basis, the outstanding rediscounted loans of borrowers affected by the calamity.
All banks are also allowed provide financial assistance to their officers and employees who were affected by the calamity. They may avail of assistance that may not be within the scope of the existing BSP-approved Fringe Benefit Program.
The regulatory measures will be in effect for a defined period and will be covered by additional specific and other prudential conditions.
The BSP extended the same measures to areas affected by recent natural calamities.
The monetary board implemented the regulatory relief to places affected by Typhoon Sendong, Pedring, Mina and Juaning in 2011; Typhoon Helen, Gener and Pablo, Tropical Depression Quinta and southwest monsoon (Habagat) rains in 2012; and Typhoons Labuyo, Santi and southwest monsoon (Habagat) rains enhanced by Typhoon Maring in 2013.