THE Monetary Board approved the grant of temporary regulatory and rediscounting relief measures for banks and other financial institutions supervised by the Bangko Sentral ng Pilipinas.
In a statement, the Monetary Board said it approved the relief measures to enable BSP-supervised financial institutions (BSFIs) to extend the same relief measures to their clients, borrowers, and employees.
Under the approved measures, banks and financial institutions will exclude exposure of affected borrowers from the computation of the past due loan ratios submitted to the BSP.
This means banks and other financial institutions can extend payment due dates for their clients’ personal loans which include credit cards, housing, and auto loans.
Companies may also avail of payment extensions for their corporate loans.
As of yesterday, Bank of the Philippines islands, RCBC and Eastwest Bank have all announced 30-day payment extensions with due dates from March 15 to April 15, 2020.
The Monetary Board also “strongly encouraged” BSFIs to temporarily “suspend all fees and charges imposed on the use of online banking platforms or electronic money, including those imposed on the use of Instapay or PesoNet electronic fund transfer.”
“This will enable consumers to facilitate banking transactions during the COVID-19 situation,” the Monetary Board said.
The Monetary Board said it will also allow staggered booking of allowance for credit losses for loans extended to affected borrowers for a maximum period of five years; non-imposition of monetary penalties for delays in the submission of all prudential reports to the BSP for a period of six months; and, moratorium on monthly payments due to the BSP, without penalty, for a period of six months.
BSFIs will also be allowed to provide financial assistance to affected officers.
For all rediscounting banks, the Monetary Board said they are given 60-day grace period to settle the outstanding rediscounting obligations with the BSP, upon application.
They are allowed to restructure their obligations with the BSP, on a case-by-case basis.
Lastly, on the renewal of rediscounting line or availment of rediscounting loans, the eligibility criteria on reserve requirement is relaxed.
Benjamin Diokno, BSP Governor, said they recognize the potentially significant impact of the Corona Virus Disease 2019 (COVID-19) to the general public, including the individual and corporate clients and employees of BSFIs.
“This pandemic has severely disrupted business operations due to measures implemented like lockdown situation, localized work suspension, heightened health and safety risks faced by employees and customers by the National Government, local government units concerned and the businesses themselves in order to control the transmission of COVID-19,” Diokno said.
BSFIs are given one year from 8 March 2020, the date of declaration of the President of the state of public health emergency under Presidential Proclamation No. 922 to avail the regulatory relief measures.
The period of eligibility may be extended depending on the developments of the COVID-19 situation.
BSFIs are expected to ensure that the regulatory relief to be availed is suitable to their operations, situation, and condition.
