The Bangko Sentral ng Pilipinas (BSP) has ramped up its regulatory relief measures to give banks and borrowers greater breathing room in the aftermath of natural and man-made disasters.
Under Circular No. 1221, the BSP is encouraging banks to grant loan payment deferments of up to 12 months to borrowers from the agriculture sector — one of the hardest-hit groups during calamities. Depending on the extent of the damage, longer deferment periods may also be approved.
The central bank said that in determining the deferment period, banks should weigh several factors, including past experience, actual production cycles, crop rehabilitation timelines, and the unique conditions of each borrower. Importantly, no additional charges or penalties will be imposed during the relief period.
Beyond the agriculture sector, banks may now extend a grace period of up to six months for loan repayments in areas officially declared under a state of calamity. This provision builds on BSP’s earlier relief measures introduced for victims of Typhoons Kristine, Leon, Ofel, and Pepito.
The circular also clarifies when victims or potential victims of disasters can claim relief—whether the cause is a tropical cyclone, another natural hazard, or even a human-induced event.
To ensure cash availability in affected regions, banks not yet connected to PhilPaSSPlus—the BSP’s payments and currency management system—are allowed to withdraw cash directly from BSP regional offices and branches until December 31, 2027. This guarantees the continuous flow of funds needed for relief operations and community recovery.
Recognizing the disruption calamities can cause to basic documentation, the BSP has also allowed banks to temporarily relax identification requirements for account openings and transactions. This measure ensures that affected individuals can still receive financial aid and manage their funds even if their IDs or records are lost.
Other relief options available to banks include:
- Financial assistance for their own affected employees.
- Temporary exclusion of calamity-related loans from being tagged as past due or non-performing.
- Flexible scheduling or temporary closure of banking offices.
- Staggered recognition of losses from damaged assets.
“By ensuring that banks can continue to provide essential services and assistance during times of crisis, we help protect the stability of the banking sector and the welfare of those who depend on it,” said BSP Governor Eli Remolona Jr.
The expanded relief framework aims to reinforce the country’s financial resilience—keeping both banks and communities afloat in times of disaster.