THE Bangko Sentral ng Pilipinas (BSP) approved the adoption of a policy framework on the grant of regulatory relief to banks and quasi-banks (QBs) affected by calamities in the country.
The Monetary Board, in its Resolution 1563, approved the adoption of the framework, in an effort to set a uniform and systematic approach in granting regulatory relief to banks and QBs affected by calamities.
The BSP “recognizes that the Philippines is vulnerable to calamities, whether caused by natural or human-induced hazards, that may adversely affect certain areas/localities, and result in declaration thereof under state of calamity,” the BSP said in its recently released circular.
“The damages brought about by calamities to people’s resources and livelihood may affect the paying capacity and risk profile of the borrowers/clients of banks/QBs. This may translate to higher past due ratios and inability to meet the legal reserve requirements,” it added.
The BSP usually gives regulatory relief packages to banks and nonbanks in areas affected by typhoons, earthquakes and war to assist in their recovery and allow them to resume normal operations.
The latest was the temporary regulatory and rediscounting relief measures to banks and quasi-banks in areas devastated by Tropical Cyclone Josie.
Based on the National Disaster Risk Reduction and Management Council situation report, most of the areas were in Regions 1,2, 3 4A, 4B, 6, the Cordillera Administrative Region and the National Capital Region.