BANK branches in Cebu have seen lower foot traffic as the province-wide mass quarantine takes effect in the whole island.
Cebu Bankers Club past president Maximo Eleccion said traffic at banks has dropped by about 50 percent as quarantine orders keep people at home.
“Banks are business as usual, foot traffic is low more or less 50 percent down,” said Eleccion, Visayas area business director at BPI Family Savings Bank.
In response to lower traffic, the banking industry is adapting a “skeletal force.”
“We are implementing a skeletal force to operate our branches considering foot traffic has gone down and also to minimize exposure of our people to Covid-19,” the banker said.
The Bankers Association of the Philippines (BAP) has called on the banking industry to ensure its services are widely available to the public amid the mass quarantine measures.
BAP president Cezar Consing noted the economic impact of the coronavirus pandemic on both corporate and consumer borrowers is now “becoming more apparent.”
He urged banks to maintain reasonable lending rates; keep branch presence to accommodate transactions that cannot be performed digitally; keep digital channels open; ensure enough cash in branches and automated teller machines; contribute to stable and liquid financial markets.
The Bangko Sentral ng Pilipinas (BSP) had cut its benchmark rate by 50 basis points (bps) and eased rules for banks. It is also buying P300 billion in government securities.
The Monetary Board also cut the reserve requirement ratio for universal and commercial lenders by 200 bps to 12 percent effective today.
The policy-setting body has authorized BSP Gov. Benjamin Diokno to slash the ratio by as much as 400 bps this year amid the pandemic.
Last week, the central bank remitted in advance P20 billion in dividends to the National Government to help it deal with the health crisis. (CSL)