The Bangko Sentral ng Pilipinas (BSP) is granting a package of temporary regulatory relief measures to banks operating in the province of Lanao del Sur, in view of the severe damage and livelihood disruption caused by the recent armed conflict in Marawi City. This will enable the banks to provide debt relief to their borrowers to assist in their speedy recovery.
Among the temporary relief measures approved on 7 December 2017 by the Monetary Board is the exclusion until 31 May 2018 of the loans of borrowers in affected areas from the computation of past due ratio. Monetary penalties for delays in submitting reports due until end of 2017 will also not be imposed. Additionally, Banks will be allowed to provide financial assistance to their bank personnel affected by the armed conflict.
Banks not operating in Lanao del Sur but with exposures to residents of the said province may also avail of the above relief measures subject to approval by the BSP.
These measures will be time-bound and subject to standard safeguards. The BSP has previously granted similar temporary regulatory relief measures to banks affected by the Zamboanga City Siege of 2013.
Source: Bangko Sentral ng Pilipinas (BSP)