BSP extends relief for banks affected by 'Gener'


Posted at Nov 13 2012 11:29 AM | Updated as of Nov 14 2012 01:12 AM

MANILA, Philippines - Banks in areas hit by Typhoon Gener in August may apply for temporary regulatory and rediscounting relief from the central bank.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said it is granting the relief measures "to enable them (banks) to similarly assist and ease the financial burden of bank customers" affected by said typhoon.

Those eligible for the grant are banks located in the National Capital Region; and provinces of Ilocos Norte, Ilocos Sur, La Union and Pangasinan in Region I; Cagayan in Region II; Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac and Zambales in Region III; BAtangas, Cavite, Laguna and Rizal in Region IV-A; Occidental Mindoro and Oriental Mindoro in Region IV-B; Masbate and Sorsogon in Region V; Aklan, Antique, Iloilo and Negros Occidental in Region VI; Cebu in Region VII; Zamboanga del Norte in Region IX; Lanao del Norte and Misamis Oriental in Region X; Davao del Sur in Region XI; North Cotabato in Region XII; and Abra, Apayao, Benguet, Ifugao, Kalinga and Mountain Province in CAR.

Relief measures for thrift, rural and cooperative banks approved by the BSP's policy-making Monetary Board on November 8 include excluding loans made by borrowers in affected areas from the computation of past due ratios.

Moreover, general loan loss provision for restructured loans of affected borrowers was reduced to 1% from 5%.

Affected banks will not be charged by penalties on reserve deficiencies, and those undergoing rehabilitation will get a moratorium on monthly payments, the BSP said.

These banks may also book allowances for probable losses on a staggered basis over a maximum of five years, subject to BSP approval.

The BSP added the banks will not be slapped with monetary penalties for delays in submission of supervisory reports.

For all types of banks, the BSP said they may extend financial assistance to their officers and employees affected by the typhoon.

For rediscounting banks, a 60-day grace period will be granted to settle outstanding rediscounting obligations as of July 28. They may also be allowed to restructure loans of borrowers affected by the calamity.

A similar set of relief measures were extended to banks affected by typhoons Mina and Pedring, and tropical storm Sendong last year, and to those impacted by monsoon rains in August and typhoon Helen earlier this year.