Oct 222013

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has granted temporary regulatory relief to banks affected by Typhoon Santi.

“(This is) to enable them to similarly assist and ease the financial burden of bank customers adversely affected by Typhoon Santi,” the central bank said in a statement.

Banks eligible for the relief measures are those located in the provinces of Pangasinan, Isabela, Nueva Vizcaya, Quirino, Aurora, Bataan, Nueva Ecija, Pampanga, Tarlac, Zambales, Laguna, and Rizal.

For thrift, rural and cooperative banks, the BSP has excluded the computation of due ratios for existing loans of borrowers in affected areas.

The BSP has also allowed to the non-imposition of penalties on legal reserves deficiencies and has granted a moratorium on monthly payments due to the central bank for those banks with ongoing rehabilitation programs.

At the same time, the central bank has slashed the general loan loss provision to one percent from five percent and said it will not be imposing penalties on delays in the submission of supervisory reports.

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For all types of banks affected, the BSP has allowed them to grant financial assistance to officers or employees affected by the typhoon.

Meanwhile, for rediscounting banks, the central bank gave them a 60-day grace period to settle outstanding obligations as of Oct. 13 and allowed them to restructure with the BSP current loans of affected borrowers.

The BSP has granted similar relief measures following typhoons Sendong, Pedring, Mina and Juaning in 2011, and typhoons Helen, Gener, and Pablo, and tropical depression Quinta in 2012.

The central bank has also extended the same measures after typhoon Labuyo, a southwest habagat, and tropical storm Maring hit the country earlier this year.

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