BSP head office
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is proposing additional relief measures for disaster-hit banks to enhance their capacity to recover and enable them to continue serving their clients during calamities.
The BSP is collecting comments from stakeholders on a draft circular that would amend the regulatory relief policy for banks that were affected by disasters.
The central bank said its proposal aimed to strengthen the operational resilience of lenders and ensure business continuity during calamities. This, as the Philippines is in the Pacific Ocean’s “Ring of Fire” –– an area prone to devastating disasters like typhoons, volcanic eruptions and earthquakes.
“The BSP is amending the regulatory relief policy for banks by providing additional regulatory measures that will enhance their capacity to bounce back and continue providing timely financial services to their clients,” the draft document read.
READ: BSP approves relief for banks in typhoon-hit areas
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The central bank said the relief measures that had been extended to banks in the aftermath of powerful storms that hit the country in late 2024 were now being considered for formal adoption.
Those include allowing banks to avail of the relief measures within one year from the onset of the calamity.
The BSP also said it wanted to extend the deadline for requests for financial assistance to bank officers in disaster-stricken areas from 30 to 90 days.
The central bank is also proposing a grace period of up to six months for disaster-hit borrowers.
Meanwhile, credit extended to affected clients may be temporarily excluded from the computations of past due and nonperforming loans for one year to prevent a deterioration of banks’ asset quality.
Since the agriculture sector is highly vulnerable to climate-related hazards, the BSP said loan repayments for agricultural borrowers may be deferred, while the terms may be adjusted based on crop cycles and “other relevant factors”.
More measures
At the same time, the draft circular would add the interventions during the pandemic to the regulatory relief packages for banks.
This includes the relaxation of identification requirements for families and small businesses in affected areas for three months, as well as more flexible notification requirements for any changes in banking days and hours.
The BSP also wants to relax the notification rules for temporary closure of bank branches and branch-lite units due to hazards, and allow banks to defer the opening of their new locations for up to three years.
Lastly, the BSP said impairment losses from banks’ own physical assets due to hazards may be recognized over a three-year period, subject to the evaluation and approval of the regulator. Assets may include bank premises and equipment.
READ: P40-B budget sought for disaster response, rice subsidy in 2026