The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) has granted temporary regulatory relief measures to banks with head offices and branches located in conflict-stricken Zambo- anga City.
In Resolution 1551 dated September 19, the MB said that among the temporary measures is the “exclusion of the loans of borrowers in the affected areas,” which should have been classified as past due loans under the Section 306 of the Manual of Regulations for Banks on September 9, and those becoming past due until November 8, from computation of the past due loan ratio.
However, the board said that banks shall maintain appropriate records on the said loan transactions, and shall pass on such regulatory relief measure to their borrowers.
Furthermore, the MB said that another relief measure is the “non-imposition of monetary penalties for delays in the submission of all supervisory repost” due to be submitted from September 9 until November 8 this year.
Since September 9, the Moro National Liberation Front (MNLF) standoff in Zamboanga City affected the flow of transactions and operations of banks in the city.
The government has retaken most of the MNLF-controlled areas, however, banking operations seemed far from being normal after some opened to accept clients.