WITH relatively stable and sound capital and liquidity buffers, the Bangko Sentral ng Pilipinas (BSP) said the the country’s financial institutions is projected to withstand adverse impact of the COVID-19 outbreak.
Benjamin Diokno, BSP Governor, said BSP-supervised banks and financial institutions have ample loan loss reserves and robust earnings.
“Results (from regulatory test show) banks are resilient to withstand assumed credit impairment and shocks on interest rates and exchange rates,” Diokno said.
The statement came as notices from different banks indicating closure of some branches caused confusion among Filipinos living in Luzon as the island was placed last week on enhanced community quarantine.
Based on the latest BSP’s surveillance of supervised financial institutions (BSFIs), Diokno said banks remain generally open and functional.
“There are adjustments as to shortened banking hours, temporary closure of branches and leaner staff in some banks. But these are mainly precautionary measures to delay the spread of COVID-19,” Diokno stressed.
He explained events like COVID-19 are a double-edged sword for banks as they pose straightforward questions such as whether to close branches because few people want to visit public places or to keep them open, for fear that shuttering sends the wrong message to the public.
“But, the role of banking services in keeping public service and economic activity afloat is essential and critical particularly in an extreme situation like COVID-19,” Diokno said.
Amid the COVID-19 outbreak, the BSP has adopted measures to lessen the potential impact on the BSFIs through the grant of regulatory and rediscounting relief measures.
During the period of availment of regulatory relief, banks are strongly encouraged to 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,” Diokno said.
In response to the call of the BSP for supervised financial institutions to extend relief measures to their clients and borrowers affected by the COVID-19 enhanced community quarantine, local banks and eMoney providers last week announced payment extensions for their clients and waived transfer payments.
Meanwhile, BDO Unibank yesterday warned its clients and the general public against fraud in the banking system
The country’s biggest lender said the public should not share important personal information like bank account numbers and passwords; not click on website links, SMS or emails “even if the messages look and sound very convincing;” and, do not share your one-time PINs.
BDO assures clients that it will never include links in its official communications and real bank officers will never ask for clients’ personal information, such as OTPs, under any circumstance.
