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Philippines: BSP extends relief measures for banks
MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has extended relief measures for banks to help sustain credit growth, and at the same time provide continued access to financial services to vulnerable sectors of the economy amid the resurgence in COVID- infections due to the more contagious Omicron variant.
BSP Deputy Governor Chuchi Fonacier said the Monetary Board issued Resolution 65 last Jan. 13 approving the extension of the effectivity of prudential and operational relief measures for BSP-supervised financial institutions (BSFIs) until the end of the year.
“The Monetary Board approved the amendments to BSP regulations on the prudential relief measures for BSFIs affected by COVID to sustain momentum of bank lending and ensure continued access to financial services by the public, including vulnerable sectors of the economy,” Fonacier said.
Under Memorandum 2022–004, Fonacier said the regulator extended the effectivity of the higher 30 percent instead of 25 percent single borrower’s limit for Philippine banks and foreign bank branches until end-2022.
Likewise, Fonacier said, the BSP also extended the validity of the relaxation in the credit risk weight for loans to micro, small, and medium enterprises (MSMEs) under the regulator’s risk-based capital adequacy frameworks until the end of the year.
The BSP also prolonged the effectivity of the reduction in the minimum liquidity ratio (MLR) of stand-alone thrift, rural, and cooperative banks until the end of 2022, unless revoked by the central bank.
It also extended the grant of regulatory relief for pawnshops through the relaxation of their maximum borrowing limit by increasing the allowed percentage of their total borrowings to pledge loans to 70 percent from 50 percent until Dec. 31.
Fonacier said the Monetary Board, through the same resolution, also extended operation relief for banks and financial institutions until the end of the year.
“The Monetary Board approved the extension of the following BSP operational relief measures to ensure continued delivery of financial services of BSFIs while at the same time ensuring health and well-being of employees and clients amid the continuing COVID-19 pandemic,” she said.
Under the operation relief measures, a BSFI no longer needs to inform the BSP of the changes in its banking days, temporary closure of branches, and changes in banking hours.
The regulator, Fonacier said, also extended the relief measure on customer identification by relaxing the requirement for the presentation of valid ID card, including for electronic or online customer onboarding.
She said the waiver of BSP approval on request for extension of the deadline to open approved bank branches and branch lite units was also extended until Dec. 31.
Source: https://www.philstar.com/business/2022/01/19/2154765/bsp-extends-relief-measures-banks