The Bankers Association of the Philippines (BAP) is urging banks to keep lending rates at reasonable levels as the country enters the third week of the enhanced community quarantine in Luzon because of the coronavirus disease 2019 (Covid-19) pandemic.
In a statement on Monday, the BAP told banks to help ease the burden of their customers and borrowers as Covid-19 cases hit more than a thousand on the 17th day of the quarantine.
“Maintain reasonable lending rates, with the objective of trying to keep such rates as close as possible to pre-quarantine levels,” BAP President Cezar P. Consing said.
Last week, a lawmaker also called on banks to freeze impending interest rate hikes for consumer and commercial loans during the pandemic. The solon also urged the banks to “come up with flexible and convenient restructuring of existing loans to enable your clients to pay their arrears at a later period and at a lower amount.”
The Monetary Board recently reduced the Central Bank’s overnight reverse repurchase facility by 50 basis points to 3.25 percent, bringing the lending and deposit rates to 3.75 percent and 2.75 percent, respectively.
While Consing urged banks to keep digital platforms open, he said that they should still have operational physical branches for transactions that could not be accomplished online.
“Ensure availability of cash in your open branches and the majority of your ATMs [automated teller machines] and contribute to stable and liquid financial markets,” the BAP chief added.
Earlier, the bankers group appealed to the public for patience and understanding during transactions given bank’s limited capacity due to the lockdown.
“The banks are doing exceptional measures to ensure continuity of access to banking services in the most efficient and sustainable manner. Now, more than ever, the public’s cooperation and understanding are needed and crucial in mitigating this health crisis,” the BAP’s statement read.
Consing said the BAP will coordinate with the Bangko Sentral ng Pilipinas in implementing the recently passed Republic Act 11469.
“The banking industry is here to support the national government and do what is necessary to help win the fight against Covid-19,” BAP added.