kabibe game BSP approves relief for banks in typhoon-hit areas

MANILA, Philippines — 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”.

Article continues after this advertisement

Eligible banks must notify the BSP, through the supervising department, of the intention to avail the regulatory relief measures.

best slots to play at casinoFEATURED STORIES BUSINESS BSP eyes shift away from OTPs to fight fraud BUSINESS Trump halts Canada, Mexico tariffs after last-ditch talks BUSINESS BIZ BUZZ: Sobrepeña eyes deal with Sta. Lucia group

“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.

READ: Typhoon damage may delay BSP rate cuts

Santiago gave this assurance Monday, following reports that 888 container vans of rice were discovered sitting in Manila ports for months.

Seaoil, CleanFuel, Petro Gazz, and Shell Pilipinas said the per-liter costs will rise by P1.10 for gasoline and 20 centavos for diesel.

Article continues after this advertisement

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.

Article continues after this advertisement

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.

Article continues after this advertisement

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.

Lastly, no penalties will be imposed on legal reserve deficiencies, if any, starting from reserve week of Oct. 18, 2024 up to six months thereafter. That is a more relaxed rule compared with the typical provision that only allows such a relief starting from reserve week after the date of declaration of state of calamity.

Article continues after this advertisement Grace period

Meanwhile, the BSP said eligible banks may grant a temporary grace period of up to six months –– or shorter –– to clients affected by the typhoons.

Such a relief may cover all outstanding loans with payment of principal and/or interest falling due on the date of landfall of the typhoons.

The loans will be excluded from the computation of past due and non-performing loans ratios of banks. But such credit will still be subject to prudential reporting for supervisory purposes.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.kabibe game

phpark READ NEXT BSP approves relief for banks in typhoon-hit areas DA to lift food security emergency on rice ‘as soon as p... EDITORS' PICK Bersamin: Budget releases more strict, transparent BSP eyes shift away from OTPs to fight fraud EDITORIAL: Magic number for a just living wage SWS trust ratings for Marcos, Duterte continue to drop Darryl Yap postpones cinema release of ‘The Rapists of Pepsi Paloma’ Trump halts Canada, Mexico tariffs after last-ditch talks MOST READ Dela Rosa last passenger to board chopper which crashed in Nueva Ecija BSP eyes shift away from OTPs to fight fraud SWS trust ratings for Marcos, Duterte continue to drop China denies hacking phone of PH envoy to US Follow @FMangosingINQ on Twitter --> View comments