Banks extend relief to borrowers

 

Philippine banks continued to provide financial relief to borrowers severely affected by the pandemic and at the same time ensured continued access to essential financial services amid the lockdowns, according to the Bangko Sentral ng PIlipinas.

BSP Governor Benjamin Diokno said the amount of loans restructured by local banks reached P328.6 billion as of end-June, almost seven times the P48.7 billion recorded in the same period last year.

Diokno said the regulator has also extended relief measures, including incentivized lending to micro, small and medium enterprises (MSMEs) as well as large companies severely affected by the pandemic to ensure the continuity of delivery of banking services.

“These developments indicate banks’ continuing efforts to assist borrowers in weathering 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 chief said.

When the National Capital Region and nearby provinces were placed under enhanced community quarantine from Aug. 6 to 20 due to the resurgence of COVID-19 cases, the BSP encouraged banks and financial institutions to renew, restructure or extend the terms of the loans of their clients, in consideration of their cash flows in the absence of any mandatory moratorium on loan payments.

To help borrowers affected by the COVID-19 pandemic, President Duterte signed Republic Act 11469 or the Bayanihan to Heal As One Act (Bayanihan 1) and RA 11494 or the Bayanihan to Recover as One Act (Bayanihan 2). Both laws expired last year.

Diokno said bank clients could approach BSP-supervised financial institutions (BSFIs) amid the absence of a mandatory moratorium or grace period for loans.

“Consistent with the policy intent of these measures, banks have been active in providing financial relief to their borrowers,” he said.

Likewise, Diokno said customers may also make use of the BSP Online Buddy or BOB to raise complaints and concerns on their financial transactions.

“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 ongoing pandemic and take swift action, if necessary,” Diokno said.

Furthermore, the BSP said banks continued to operate in areas under enhanced community quarantine with an on-site skeleton workforce to help stem the transmission of the COVID within the community.

As an exception, public and private financial service providers involved in the distribution of government grants and amelioration subsidies are allowed to operate with full on-site capacity.

The BSP chief said the number of bank branches continued to increase since the start of the pandemic, with total number of branches growing to 13,134 as of end-July from 12,870 in end- 2019 and the number of ATMs reaching 22,523 as of end-March

Diokno said the regulator is closely monitoring the status of the temporary closures of banking offices on a daily basis to ensure availability of financial services to the banking public.