BSP relaxes rules for banks operating in Marawi, Lanao del Sur
The regulator is easing some rules to help these banks get back on their feet.
The Bangko Sentral ng Pilipinas (BSP) has granted temporary regulatory relief to banks operating in Lanao del Sur to give them space to recover from the five-month battle in Marawi City.
“This will enable the banks to provide debt relief to their borrowers to assist in their speedy recovery,” the central bank said in a statement published in January 2018.
The Monetary Board approved the relief package on Dec. 7, 2017 and will take effect until May 31, 2018.
Loans incurred by borrowers in affected areas will be excluded from the computation of the past due ratio of affected banks, while monetary penalties for delayed report submissions due until end-2017 will also be waived.
The banks are also allowed to extend financial aid to their personnel who were affected by the armed conflict between government soldiers and Maute rebels.
The BSP offered similar relief packages for banks in Zamboanga City following a siege staged by the Moro National Liberation Front in 2013.