LENDERS affected by Typhoon Seniang (international name Jangmi) will be subject to less strict regulatory measures on loans and will be allowed to extend financial assistance to their employees as part of the regulatory aid granted by the Bangko Sentral ng Pilipinas (BSP).
The Monetary Board approved recently the granting of a regulatory and rediscounting relief measures to banks whose head offices or branches were devastated by the typhoon.
Among the areas covered by the relief measures from the BSP were the areas severely affected by the recent typhoon as declared by the National Disaster Risk Reduction and Management Council.
The areas include Occidental Mindoro, Palawan, Antique, Capiz, Iloilo, Negros Occidental, Bohol, Cebu, Siquijor, Eastern Samar, Leyte, Northern Samar, Western Samar, Southern Leyte, Zamboanga del Sur, Bukidnon, Camiguin, Lanao del Norte, Misamis Oriental, Compostela Valley, Davao del Norte, Davao Oriental, Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte and Surigao del Sur.
The temporary relief measures will allow all banks to provide financial assistance to their officers and employees who were affected by the calamity. This includes those assistance that may not be within the scope of the existing BSP-approved fringe benefit program.
For all thrift, rural and cooperative banks in the areas affected, the BSP will exclude existing loans of borrowers from the computation of past due loan ratios as long as these are restructures or
given relies.
The BSP will also lift the imposition of penalties on legal reserves deficiencies and delays of submission of supervisory reports of smaller banks in affected areas.
A moratorium will also be given on monthly payments due to the BSP for banks with ongoing rehabilitation programs.
The booking of allowance for probable losses on a staggered basis over maximum of five years for all types of loans extended to borrowers will also be allowed subject to BSP approval.
For all rediscounting banks in the area, the regulatory relief package includes the granting of a 60-day grace period to settle the outstanding rediscounting obligations as of mid-July. The central bank also allowed banks to restructure the outstanding rediscounted loans if borrowers affected by the calamity.
Similar relied measures were extended previously by the BSP to banks in cities and provinces affected by the previous natural calamities.