The Bangko Sentral ng Pilipinas (BSP) is granting regulatory relief measures to banks affected by Tropical Storm Quinta to enable them to assist and ease the financial burden of bank customers also adversely affected by the storm.

Quinta devastated several parts of the country before 2012 ended.

BSP said that eligible for the relief measures are those in the following areas identified by the National Disaster Risk Reduction and Management Council on January 1: Region 4B - Palawan and Oriental Mindoro; Region 5—Albay, Camarines Norte, Camarines Sur, Sorsogon and Masbate; Region 5—Iloilo, Negros Occidental, Aklan and Capiz; Region 7—Cebu and Region 8—Leyte.

As approved on January 3 by the Monetary Board, the BSP’s policy-making body, the temporary relief measures for thrift, rural and cooperative banks are: excluding existing loans of borrowers in affected areas from the computation of past due ratios provided these are restructured or given relief and reducing the 5-percent general loan loss provision to 1 percent for restructured loans of borrowers in the affected areas.

Also, there would a non-imposition of penalties on legal reserves deficiencies with the head office and/or branches in the affected areas; moratorium on monthly payments for banks with ongoing rehabilitation programs, subject to BSP approval; booking of allowance for probable losses on a staggered basis over maximum of five years for all types of credit extended to individuals and businesses directly affected by the calamity and non-imposition of monetary penalties for delays in the submission of supervisory reports.

For all banks, the measure approved is allowing banks to provide financial assistance to their officers and employees who were affected by the calamity, including assistance that may not be within the scope of the existing BSP-approved Fringe Benefit Program.

Meanwhile, all rediscounting banks are given a 60-day grace period to settle the outstanding rediscounting obligations as of December 26, 2012 with the BSP.

The BSP will also allow affected banks to restructure with them, on a case-to-case basis, the outstanding rediscounted loans of borrowers affected by the calamity.

However, the central bank added that these measures will be in effect for a defined period, and covered by additional specific and other prudential conditions.