The Bangko Sentral ng Pilipinas (BSP) has enhanced its regulatory relief policies to better support banks and borrowers affected by calamities, reinforcing efforts to maintain financial stability and resilience during crises.
“These reforms highlight our dedication to enhancing operational resilience of banks and delivering meaningful support to affected borrowers. By ensuring that banks can continue to provide essential services and assistance during times of crisis, we help protect the stability of the banking sector and the welfare of those who depend on it,” said BSP Governor Eli M. Remolona, Jr.
Under BSP Circular No. 1221, Series of 2025, banks are encouraged to grant loan payment deferments of up to 12 months to borrowers in the agriculture sector, with longer extensions allowed depending on the severity of damage. No additional charges will be imposed during the relief period.
Banks may also grant up to a six-month grace period on loan repayments for borrowers in calamity-affected areas. The circular formalizes relief measures earlier introduced for victims of Typhoons Kristine, Leon, Ofel, and Pepito, and covers both natural and human-induced hazards.
To ensure access to cash during emergencies, banks that are not yet part of the BSP’s PhilPaSSPlus or currency management system may withdraw funds directly from BSP Regional Offices and Branches until December 31, 2027.
Banks are also allowed to temporarily relax identification requirements for opening accounts and conducting financial transactions to help individuals who have lost or damaged personal documents access essential financial services and assistance.
Other relief measures for banks include financial aid for affected employees, temporary exclusion of calamity-hit borrowers’ loans from being classified as past due or non-performing, flexible scheduling or temporary closure of branches, and staggered recognition of losses from damaged assets.
The BSP said these regulatory adjustments will help banks sustain operations in disaster-hit areas and speed up community recovery.
