The Bangko Sentral ng Pilipinas (BSP) is moving to formalize regulatory relief measures originally introduced to assist banks in the aftermath of severe weather events, including Tropical Storm Kristine and Super Typhoons Leon, Ofel, and Pepito, which impacted the Philippines in late 2024. The BSP's draft circular indicates a concerted effort to bolster the operational resilience of banks during such disasters.

Under the proposed regulations, banks will be allowed to initiate relief measures within one year from the onset of a calamity, rather than waiting for an official declaration of a state of calamity.

This change is designed to address the fact that operational challenges often arise immediately when a disaster occurs.

Additional measures outlined include an extension of the deadline for banks to submit requests for loan accommodations on behalf of affected officers, with the new limit set at 90 days instead of the existing 30-day requirement.

Furthermore, the proposed rules allow banks to offer affected borrowers a temporary grace period for loan repayments, which could extend up to six months.

Loans provided during this period may be excluded from calculations of past due and non-performing loans for one year from the disaster's onset.

The BSP is also looking to adopt certain interventions employed during the COVID-19 pandemic into formal regulations, such as easing identification requirements for households and micro-businesses seeking financial assistance.

In response to safety concerns, the BSP proposes that banks can close branches or branch-lite units without prior notification during hazardous conditions, provided that a consolidated report is submitted within five days of the closure.

Additionally, banks would be allowed to defer the opening of approved branches in impacted areas for up to three years.

Recognizing the impact of climate-related hazards on the agricultural sector, the BSP suggests standardized forbearance measures for agricultural loans, permitting deferred payment schedules that align with crop cycles and other relevant agricultural factors.

The BSP has called for feedback from stakeholders on the draft circular until June 18, aiming for a collaborative approach in finalizing these relief measures.