The Bangko Sentral ng Pilipinas (BSP) will grant regulatory relief to banks and quasi banks (QBs) that sustained losses due to their clients being affected by the African Swine Fever (ASF) and the coronavirus disease (COVID-19).
“We believe that the grant of regulatory and rediscounting relief measures is also applicable to financial institutions whose clients have suffered from adverse effects of these crises,” BSP Governor Benjamin E. Diokno said.
The temporary regulatory relief includes grace periods for rediscounting loans, staggered booking of allowance for credit losses, non-imposition of penalties on legal reserve deficiencies, and non-recognition of certain defaulted accounts as past due.
Diokno said the BSP recognizes the potentially crippling impact of the said events on key industries, which include the tourism industry.
“The BSP’s initial assessment points to a potential dampening impact on the Philippine economy in the near term mainly through disruptions to tourism and associated services,” he said.
The House of Representatives is already tackling the issue on how to compensate for the tourism losses due to the implemented travel ban prompted by the COVID-19 threat.—AAC
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