BSP cuts Zamboanga banks, clients some slack

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has given more regulatory leeway for banks in war-torn Zamboanga City.

In a memorandum, the central bank said it has “granted temporarily relief to banks in Zamboanga as well as their clients who may have credit obligations falling due between September 9 and November 8.”

The BSP explained that it is excluding affected borrowers whose loans fall past due within the said dates from the computation of past due loan ratio. Records of these loan transactions, however, must be maintained.

Affected banks with reports due in the same period were also exempted from incurring penalties for delayed submission.

“Bank borrowers from affected areas will also benefit from the measure because said banks shall pass the regulatory relief to their clients,” BSP added.

Banking operations in the city are yet to normalize with some branches closing as early as 12 noon or 2 PM.

READ: Zamboanga banks open until 12-2pm only

The central bank released the measure in view of the physical risks imposed on clients from affected areas by the continuing crisis – Rappler.com