BSP expands calamity relief for banks, borrowers

The Bangko Sentral ng Pilipinas (BSP) has bolstered its regulatory relief framework for the banking industry, providing a broader set of concessions aimed at assisting both financial institutions and their clients severely impacted by calamities.

- By KEISHA TA-ASAN

The new guidelines, formalized under Circular 1221, Series of 2025, are intended to support economic recovery in areas placed under a state of calamity.

The Monetary Board approved the amendments to the guidelines on the grant of regulatory relief measures, which were originally provided under Section 1151 of the Manual of Regulations for Banks.

“The amended guidelines provide additional regulatory relief measures to banks to further support them in their recovery from calamities and enable them to provide prompt and direct relief to affected borrowers and other stakeholders,” the BSP said.

The updated policy is comprehensive, offering several key measures directly benefiting borrowers located in affected areas. Central to the relief package is the authorization for banks to grant a temporary grace period for loan payments.