Wednesday, October 30, 2013

Banks in quake-hit Visayas get a break






The central bank has announced a fresh set of relief measures for Visayas-based banks whose operations may have been affected by the 7.2 magnitude earthquake that hit the country earlier this month.


These relief measures, which range from the waiver of certain fines for late regulator reports to a moratorium on monthly payments for ailing banks, are meant to make it easier for lenders to cope with the disruption of their operations caused by natural calamities.


Similar relief measures have been granted to banks in other parts of the country that have been affected by typhoons and other weather disturbances.


In a statement, the Bangko Sentral ng Pilipinas (BSP) said banks in Guimaras, Iloilo, and Negros Occidental in Region VI, and Bohol, Cebu, and Siquijor in Revion VII would be eligible for the relief measures.


Under the list of relief measures approved by the BSP last week for thrift, rural, and cooperative banks are the exclusion of loans of borrowers in affected areas in the computation of soured loans, waiver of penalties for reserve deficiencies of branches in affected areas, and a moratorium on monthly payments to the BSP for banks undergoing rehabilitation.


Subject to the approval of the BSP, small banks would also be allowed to book probable losses from loans of borrowers in affected areas on a staggered basis over a maximum of five years.


The BSP said it would also waive penalties for delays in the submission of supervisory reports.


These relief measures were first granted for banks affected by typhoons Sendong, Pedring, Mina and Juaning in 2011.


Banks affected by typhoons Helen, Gener, and Pablo and tropical depression Quinta in 2012 were also showed leniency by the BSP.


This year, banks affected by typhoons Labuyo, Santi, and Maring were given the same treatment. Paolo G. Montecillo



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Tags: banking sector , Business , Earthquake , Relief Measures , visayas-based banks



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