Bangko Sentral ng Pilipinas offers regulatory relief to banks affected by Typhoon Ruby

MANILA, Philippines - Banks affected by last month’s typhoon Ruby may now apply for regulatory and rediscounting relief measures with the Bangko Sentral ng Pilipinas.

In a statement, the central bank said banks qualified for the measures are those located in the cities of Caloocan, Las Pinas, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon, Taguig and Valenzuela.

Lenders located in the provinces of Bataan, Batangas, Cavite, Laguna, Quezon, Rizal, Marinduque, Occidental Mindoro, Oriental Mindoro, Palawan, Romblon, Albay, Camarines Norte, Camarines Sur, Catanduanes, Masbate, and Sorsogon may also apply for relief.

At the same time, the BSP said affected banks in Aklan, Antique, Capiz, Guimaras, Iloilo, Negros Occidental, Bohol, Cebu, Negros Oriental, Siquijor, Biliran, Eastern Samar, Leyte, Northern Samar, Samar, Southern Leyte, Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte, and Surigao del Sur are also qualified.

Ruby battered the country last month, killing 18 and injuring 916, the government said. The weather disturbance also damaged P5.09 billion worth of infrastructure and agriculture, government data showed.

These measures, approved by the Monetary Board on Jan. 8, should help banks cope with the devastation brought by the typhoon and in turn, help their clients affected by the calamity.

Under the BSP’s regulatory and relief measures, thrift, rural, and cooperative banks will be able to leave out the existing loans of borrowers in affected areas from the computation of past due ratios, and also cut the general loan loss provision for restructured loans of borrowers to one percent from five percent.

The central bank said these banks would not be subject to penalties on legal reserves deficiencies, and for delays in their submission of supervisory reports with the BSP. Monthly payments due to the BSP may also be suspended for those with rehabilitation programs due to the calamity.

Moreover, banks will also be allowed to book allowance for probable losses on a staggered basis over a maximum of five years on borrowings extended to individuals and firms affected by Ruby, the BSP said.

Affected banks may also extend financial assistance to their officers and employees hit by the calamity, the central bank added.

With regard to rediscounting banks, the BSP said they will be given a 60-day grace period to settle outstanding obligations as of Dec. 6, and they will be allowed to restructure with the central bank the loans of clients affected by the typhoon.

The BSP said these measures will be in effect “for a defined period and covered by additional specific and other prudential conditions.”

Last year, the central bank extended the same measures to banks and quasi-banks affected by Tropical Depression Agaton, and Typhoons Glenda, Luis, and Mario.

In the previous years, the BSP has also done the same for those devastated by Typhoons Yolanda, Santi and Labuyo, by the southwest monsoon rains enhanced by Tropical Storm Maring, and the magnitude 7.2 earthquake in Bohol.