BSP grants regulatory relief to banks

THE CENTRAL BANK has announced temporary regulatory relief to banks operating across 16 areas disrupted by typhoon Nina (international name: Nock-Ten) last December, giving them some room for recovery after heavy rains tore through Luzon and Visayas.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said it has approved the grant of regulatory and rediscounting relief measures to banks based across four regions ravaged by the Christmas typhoon.

The relief measures may be availed of by banks with head offices, branches, extension offices, and microfinance-oriented units in Batangas, Cavite, Laguna, Quezon, Rizal, Marinduque, Occidental Mindoro, Oriental Mindoro, and Romblon.

Also covered are lenders operating in Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate, Sorsogon, and Northern Samar, following a Jan. 12 decision by the Monetary Board.

Typhoon Nina caused a total of P6.115 billion worth of damage in infrastructure and agriculture, according to the National Disaster Risk Reduction and Management Council.

Thrift, rural, and cooperative banks are allowed to exclude outstanding loans incurred by borrowers in the covered areas in computing their past due ratios, provided that such borrowings are restructured or given relief, according to the BSP issuance.

The central bank will not impose penalties on a bank within the covered provinces even if its reserves fall below requirement, while those under rehabilitation may take a pause in settling their monthly dues with the BSP. No fines will also be imposed for delayed submissions of regulatory reports to the central bank.

The small banks can also book an allowance for credit losses over a maximum of five years for all types of loans extended to consumers and businesses “directly affected” by the typhoon, but must first secure BSP approval, according to the rules.

Meanwhile, banks with unsettled rediscounting dues with the BSP as of Dec. 25 are granted a 60-day grace period.

Lenders in the affected areas will also be allowed to restructure outstanding rediscounted loans held by borrowers affected by the typhoon on a case-to-case basis. However, rediscounting banks with “serious violations” or are subject to legal action from the BSP may not avail of this scheme.

All banks located in the affected areas can also provide financial aid to its officers and employees, even beyond the set of fringe benefits approved by the BSP for each firm.

Last year, the BSP also extended relief measures for banks and quasi- banks operating in areas hit by supertyphoon Lawin in October. Similar arrangements were also made in previous years for provinces damaged by typhoons Seniang, Ruby, Ineng, and Lando.

GSIS LOANS

In a related development, the Government Service Insurance System yesterday said it has allotted P4.9 billion in calamity loans for its active members and old-age pensioners located in the provinces of Albay, Batangas, Camarines Sur, Catanduanes, Marinduque, Quezon, as well as six areas in Oriental Mindoro who were affected by typhoon Nina.

Members availing of the loan for the first time may borrow P20,000, while those with loan balances can borrow up to P40,000. •