The Central Bank of the Philippines has issued a memorandum implementing Monetary Board approval of additional regulatory relief measures for banks with head offices and/or branches or branch-lite units, or with end-user borrowers, in areas devastated by Tropical Storm “Kristine” and Super Typhoons “Leon”, “Ofel” and “Pepito”. The package allows eligible banks to avail of the relief framework in Section 1151 of the Manual of Regulations for Banks, and supports temporary payment relief for affected borrowers while maintaining supervisory reporting. The reckoning period for the relief measures is tied to the respective dates of landfall of the typhoons in affected areas. Banks may grant clients affected by the typhoons a temporary grace period of up to six months on outstanding loans with principal and/or interest falling due from the dates of landfall, on terms agreed by the bank and borrower, including a shorter period where mutually agreed. Loans covered by the grace period are excluded from the calculation of banks’ past-due and non-performing loan ratios, but remain subject to prudential reporting through an electronic supplemental Financial Reporting Package report using the prescribed form. For credit accommodations granted to bank officers affected by the typhoons that fall outside existing Bangko Sentral-approved purposes under Section 135 of the Manual of Regulations for Banks, requests for post-approval must be submitted on or before 31 March 2025 to the appropriate supervising department for regularization. The memorandum also provides that no penalties will be imposed on legal reserve deficiencies of thrift banks, rural banks and cooperative banks starting from reserve week 18 October 2024 up to six months thereafter, and requires eligible banks to notify the Bangko Sentral, through the supervising department, of their intention to avail of the relief measures.

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