MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) set out temporary regulatory relief measures to prevent a surge in loan defaults and preserve financial stability as rising energy prices strain households and businesses.
Approved under Monetary Board Resolution 296, the measures allow BSP-supervised financial institutions (BSFIs) to extend relief to borrowers affected by the government’s declaration of a State of National Energy Emergency on March 24, 2026.
“The declaration was made through Executive Order 110, s. 2026, issued in response to global developments, including heightened tensions in the Middle East,” BSP Governor Eli Remolona Jr. said.
“In this context, the Bangko Sentral ng Pilipinas is extending appropriate regulatory relief to support banks and their clients in sustaining economic activity during the period of the energy emergency,” he added.
Under the measures, banks may grant temporary grace periods of up to six months on loan payments for affected borrowers. Agricultural borrowers may be given longer relief, with payment deferments of up to one year, subject to the lending bank’s assessment.
To further ease pressure on bank balance sheets and prevent a sharp rise in non-performing loans (NPLs), the central bank also allows eligible loans to be temporarily excluded from past due and NPL classifications for up to one year. This provides banks with flexibility in restructuring loans without immediately recognizing deterioration in asset quality.
