29.6 C
Manila
Friday, April 19, 2024

BSP: Covid relief for banks, public in place

- Advertisement -

BANGKO Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said their Covid-19 package of relief measures for banks will remain in place as they aim to incentivize lending and support continuous delivery of banking services amid the ongoing health crisis.

In a press briefing on Thursday, Diokno assured the public of the continued access to and delivery of essential banking services amid the Enhanced Community Quarantine (ECQ), which is scheduled to end by August 20, but at that time of briefing was still the subject of talks for a possible extension.

Diokno also vowed to keep the regulatory support the BSP extended to banks and expects that lenders will pass on the relief measures to Filipino banking consumers during this time.

Part of the support Diokno mentioned include the decision to allow peso-denominated loans to micro, small and medium enterprises (MSMEs) and critically impacted large enterprises as alternative compliance with the reserve requirement; the relaxation of the requirement on the presentation of valid IDs by retail clients and micro-business owners; and the temporary waiver on PhilPass transaction fees and licensing fees for Electronic Payments and Financial Services.

“The BSP will continue to closely coordinate with the banking industry to ensure the safe and efficient delivery of banking services as well as monitor the developments related to the on-going Covid-19 pandemic and take swift action, if necessary,” Diokno said.

The governor noted that banks have been active in providing financial relief to their borrowers consistent with the policy intent of BSP’s relief measures.

In particular, Diokno said as of end-June 2021, the level of restructured loans of banks jumped to P328.6 billion, almost seven times the P48.7 billion posted for the same period last year.

The governor also said that loans to MSMEs that are used as alternative compliance with the reserve requirements have also surged since the start of the pandemic.

As of reserve week ending 29 July 2021, loans to MSMEs that were utilized as alternative compliance with the BSP’s reserve requirements hit P188.7 billion, up from the P8.7 billion recorded as of end-April 2020.

“These developments indicate banks’ continuing efforts to assist borrowers weather the challenges faced during this difficult period. Thus, customers are encouraged to approach banks regarding adjustments to their loan terms to match their cash flows and paying capacity,” the BSP said.

Image courtesy of Nonoy Lacza

Read full article on BusinessMirror

- Advertisement -

Leave a Reply

- Advertisement -

Related Articles

- Advertisement -
- Advertisement -

Latest Articles

- Advertisement -