BSP grants relief to banks in areas hit by typhoon Mina

The Bangko Sentral ng Pilipinas (BSP) has extended regulatory relief to banks with head offices and branches located in several areas including the National Capital Region (NCR) devastated by typhoon Mina last August. The BSP Deputy Governor Nestor Espenilla Jr. issued on Monday Memorandum No. 2011 – 055, granting regulatory relief to banks in NCR, Cordillera Administrative Region (CAR) as well as regions I, II, III, V, and VI that were affected by typhoon Mina. The BSP memorandum cited MB Resolution No. 1508, which was approved by the Monetary Board on Oct. 6, as authorizing the regulatory relief to enable banks to assist and ease the financial burden of clients adversely affected by typhoon Mina. The National Disaster Risk Reduction and Management Council (NDRRMC) identified the following areas as being entitled to regulatory relief.

• NCR: Navotas City
• CAR: Abra, Apayao, Benguet, Kalinga, and Mountain Province
• Region I: Ilocos Norte, Ilocos Sur, La Union, and Pangasinan
• Region II: Cagayan, Isabela, and Nueva Vizcaya
• Region III: Tarlac and Zambales
• Region V: Albay
• Region VI: Iloilo and Negros Occidental

Relief measures Espenilla explained that the relief measures allow thrift, rural, and cooperative banks to now exclude existing loans of borrowers in affected areas from the computation of past due ratios provided these get restructured or given relief, reducing at the same time the 5 percent general loan loss provision to 1 percent for restructured loans of borrowers in the affected areas. Other measures include the non-imposition of penalties on legal reserves deficiencies with head office and branches in the affected areas from Sept. 1, 2011 to Feb. 23, 2012, as well as the imposition of a moratorium on monthly payments due to BSP for banks with ongoing rehabilitation programs until Feb. 29, 2012. He noted that subject to BSP approval, banks would be allowed to book allowance for probable losses on a staggered basis over a maximum of five years for all types of credit extended to individual and businesses directly affected by the calamity. Likewise, the BSP would not impose monetary penalties on banks in the affected areas for delays in the submission of supervisory reports. Banks would also be allowed to provide financial assistance to their officers and employees who were affected by the calamity including assistance that may not be within the scope of the existing BSP-approved Fringe Benefit Program. The central bank would grant a 60-day grace period to settle the outstanding rediscounting obligations as of July 25 with the BSP of all rediscounting banks in the affected areas. The BSP said it had extended similar relief measures to thrift, rural, and cooperative banks in cities and provinces hit by previous typhoons such as Cosme, Frank, Ondoy, Pepeng, and Juaning. — MRT/VS, GMA News