BSP extends regulatory relief package-A A +A
By Mia A. Aznar
Wednesday, December 4, 2013
TO FURTHER aid banks in calamity-hit areas and their clients, the Bangko Sentral ng Pilipinas (BSP) announced yesterday the extension of a special regulatory relief package, in addition to earlier measures granted to them.
The additional measures are available to universal, commercial, thrift, rural and cooperative banks with head offices or branches in the Samar and Leyte provinces, Cebu, Iloilo, Capiz, Aklan and Palawan, which were declared severely affected by super typhoon Yolanda under Proclamation No. 682.
“The BSP is providing the wide array of regulatory relief so banks can extend debt relief to typhoon victims and continue lending and providing other services to the public in typhoon-affected areas and thus promote early recovery,” the BSP said in a statement.
Under the special measures, affected banks will be allowed to book on a staggered basis in a five-year period the losses on loans outstanding that are partially or fully condoned or written off.
Impairment losses on bank premises and its furniture, equipment and other properties acquired as of Nov. 7 may be recognized over a staggered period of five-years. Thrift, rural and cooperative banks with head offices in the affected areas are eligible to apply for condonation of annual supervisory fees for next year.
The BSP may also condone supervisory fees for up to five years, depending on the severity of losses incurred by the bank.
The BSP will also allow flexibility on branch relocation and temporary offices to more viable locations within affected areas within a six-month period.
As for periodic and branch reports, the BSP will relax the requirement to submit such reports, along with the presentation of required documents by clients, provided that appropriate controls are not sacrificed.
Following the magnitude 7.2 earthquake and typhoon Yolanda, the BSP issued regulatory and rediscounting relief measures to ease the burden of banking clients. They also allowed banks to ease the requirement of clients to present identification while transacting in case typhoon victims lost these documents in the typhoon and until government offices in affected areas that can issue such documents can get back to regular operations.
Published in the Sun.Star Cebu newspaper on December 05, 2013.