The Central Bank of the Philippines (BSP) issued Circular No. 1221, Series of 2025, strengthening regulatory relief that banks can provide to borrowers in calamity-affected areas and applying additional operational flexibilities for banks during crises. The framework expands loan repayment relief, allows temporary easing of certain requirements to keep banking services accessible, and introduces measures to support cash availability in affected locations. For agriculture borrowers, the circular encourages banks to grant loan payment deferments of up to 12 months, with longer periods possible depending on the severity of impact, and specifies that no additional charges will be imposed during the relief period; banks’ assessments are to consider factors such as historical experience, production cycles, crop rehabilitation periods, and borrower-specific circumstances. Banks may also grant any borrower in calamity-affected areas a grace period of up to six months for loan repayments, codifying a relief measure previously extended to victims of Typhoons Kristine, Leon, Ofel, and Pepito, and the circular sets out when victims or potential victims can claim relief for tropical typhoons (including those that do not make landfall), other natural hazards, or human-induced hazards. To support liquidity, banks that are not yet members of PhilPaSS Plus or the BSP’s currency management system may withdraw cash directly from BSP Regional Offices and Branches until 31 December 2027; banks may also temporarily ease identification requirements for account opening and financial transactions, subject to conditions. Additional bank-side relief measures include allowing financial assistance for affected officers and employees, temporary exclusion of affected borrowers’ loans from past due and non-performing classifications, simplified requirements for changes in banking schedules and temporary branch closures (including delayed openings of approved branches), and staggered recognition of losses from physical assets impaired by calamities.
Central Bank of the Philippines 2025-10-28
Central Bank of the Philippines expands calamity relief measures with up to 12-month loan deferments and direct cash withdrawals until 2027
The Central Bank of the Philippines issued Circular No. 1221, Series of 2025, enhancing regulatory relief for banks in calamity-affected areas. The circular expands loan repayment relief, eases requirements to maintain banking services, and introduces measures to support cash availability. It allows deferments for agriculture borrowers, grace periods for loan repayments, and temporary easing of identification requirements, among other operational flexibilities.