M-2025-003: Regulatory Relief Measures for Banks Affected by Tropical Storm Kristine and Super Typhoons Leon, Ofel, and Pepito

BANGKO SENTRAL NG PILIPINAS
To
Subject
MEMORANDUM No. M-2025 -
The Monetary Board, in its Resolution No. 39 dated 93anuary 2025 approved the grant of additional regulatory relief measures to banks with head offices and/or branches/19ranch-lite units or with end-user borrowers located in areas which were devastated by Tropical Storm "Kristine" and Super Typhoons "Leon", "Ofel" and "Pepito" ICOllectively referred to as "the typhoons"). These relief measures are aimed at enabling banks to carry on with their business operations after extreme weather events and extend equivalent financial relief to their affected borrowers. Affected banks are eligible to avail of the regulatory relief package specified in Section 1151 of the Manual of Regulations for Banks (MORBi, subject to the following enhanced provisions:
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OFFICE OFTHE GOVERNOR
ALL BANKS
Regulatory Relief Measures for Banks Affected by Tropical Storm 'Kristine", and Super Typhoons "Leon". "Ofel" and "Pepito" The reckoning period of the regulatory relief measures shall be on the respective dates of the landfall of the typhoons in affected areas:
2. For financial assistance provided to officers who are affocted by the
typhoons that are not within the scope of the existing Bangko Sentral￾approved purposes under Section 135 of the MORB ILOans, advances, and other credit accommodations to o177cersl the request for post. approval of the grant of loans, advances, or any other forms of credit accommodations to officers shall be submitted on or before 31 March 2025 to the appropriate supervising department of the Bangko Sentral for regularization; and
3. No penalties shall be imposed on legal reserve deficiencies. if any. by thrift
banks, rural banks and cooperative banks computed under Section 255 of the MORB on Reserve Deficiencies; Sanctions, starting from reserve week 18 October 2024 up to six (6) months thereafter. Taking a critical balance of their fiduciary duty and financial intermediation role. eligible banks are riot precluded from granting a temporary grace period of up to six (6) months to their clients who were affected by the typhoons, The temporary grace period may cover all outstanding loans' with payment of principal and/or interest falling due that may start on the respective dates of landfall of the typhoons The implementation of the availed temporary grace period shall be based on the terms as agreed by banks and borrowers concerned. The parties, however. are riot precluded from mutually agreeing to a grace period shorter than six (6) months. Banks are expected to discuss with their borrowers the other available options aside from the temporary grace period empowering the latter to make informed decisions considering their financial capabilities. The loans subject of the temporary grace period shall be excluded from the computation of past due and nori-performing loans ratios of banks. Said loans. however. shall still be subject to prudential reporting for supervisory purposes using ' . 'Cla^^me^fion:. g'^NERAL' ' . . . ' O . .' ..' .
. ......
Refers to loans released on or before the respective dates of landfall of the typhoons.
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the prescribed form (attached as Annex A1 to be submitted electronically to the Bangko Sentral. through the appropriate supervising department, copy furnished the ESC Supervision and Surveillance Group at following the submission timeline of the Solo Financial Reporting Package. Consistent with Section 1151 of the MORB. eligible banks shall notify the Bangko Sentral. through the supervising department. of the intention to avail the regulatory relief measures. For guidance and implementation. ry30 January 2025 ^^^,^.. ,^ <-~~~ EU M. REMOLONA. JR. Governor Classi, ication: GENERAL
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(Name of Bankl
Supplemental FRP Report
Amounts in Php IAbsolute figuresI
(Reporting Period)
Residents
Particulars
Loans to Government
A. National Government
B. LGUs
C. Goccs
I. Social Security Institutions
2. Other Financial
3, Nori-Financial
Agricultural, Fisheries and Rural
Development (AFRDj Loans
A. Loans that Generally Benefit
Agrarian Reform and Other
Priority Sectors
Current
B. Other AFRD-Eligible Loans
Microenterprise Loans
PDL
A. Microfinance Loans
FRP Balance
IAI
B. Other Microenterprise Loans
NPL
Small and Medium Enterprise
Loans
A. Small Enterprises
B. Medium Enterprises
Gross
Loans
Contracts to Sell
Loans to Private Corporations
A. Financial
ACL
B. Non-Financial
,
Classification: GENERAL
Net
Loans
Adjustments
[B]
PDL NPL Current
Adjusted FRP Balance
IC . A - Bl
PDL NPL
Annex A
Gross
Loans
ACL Net
Loans
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7 Loans to Individuals for Housing
Purposes
Particulars
Loans to Individuals Primarily for
Personal Use Pur OSes
A. Credit Card
B. Motor Vehicle Loans
I. Auto Loans
2. Motorcycle Loans
C. Salary-Based General-purpose
Consumption Loans
D. Others
Current
Loans to Individuals for Other
Purposes
Total a/Of which loans used to comply with Agriculture. Fisheries. and Rural Development (AFRD) Loans PDL FRP Balance tA1 a ) Loans that Generally Benefit Agrarian Reform and Other Priority Sectors NPL (2) Other AFRD-Eligible Loans Gross Loans 71nc/udesRestructured Loans A - The amount reflected in the FRP as of the Reporting Period B . Outstanding loans subject to regulatory relief measure on the exclusion from the past due and nori-performing classification ACL Net Loans Adjustments [B] PDL , Classification: GENERAL NPL Current Adjusted FRP Balance [C = A - B] PDL NPL Gross Loans ACL Net Loans