RELIEF measures to prevent a surge in loan defaults and preserve financial stability have been approved by monetary authorities as rising energy prices pressure households and businesses.
Under Monetary Board Resolution 296, Bangko Sentral ng Pilipinas-supervised financial institutions (BSFIs) were allowed to extend relief to borrowers affected by the government’s declaration of a national energy emergency last month.
“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.
Banks may grant temporary grace periods of up to six months on loan payments for affected borrowers. Agricultural borrowers can be given longer 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 BSP also allowed eligible loans to be temporarily excluded from past due and NPL classifications for up to one year.
This will give banks flexibility in restructuring loans without immediately recognizing a deterioration in asset quality.
The BSP, however, said the application of relief measures should remain targeted and prudent. Financial institutions are expected to extend assistance only to borrowers whose repayment capacity has been materially affected by the energy crisis, based on reasonable and well-documented assessments.
“BSFIs are expected to exercise prudent judgment in determining the appropriateness of the regulatory relief measures that will be availed,” Remolona said, noting that support must be “targeted, proportionate, and consistent with safe and sound banking practices.”
The central bank also clarified that any relief granted should be implemented under mutually agreed terms between the lender and the borrower and be subject to existing notification, documentation and reporting requirements.
The relief measures can be availed of within a year from March 24, 2026, the declared start of the energy emergency, giving banks a defined window to extend support while maintaining oversight and accountability.
In addition to loan-related relief, the BSP urged financial institutions to help ease the burden on consumers and businesses by temporarily suspending fees and charges on digital transactions.
These include transfers made through InstaPay and PESONet as well as services offered via online banking platforms and electronic money channels.
The BSP said lowering the cost of digital transactions could help reduce the need for physical travel to banks or payment centers, particularly as higher fuel prices had raised transportation costs.
“The BSP remains committed to promoting financial stability, financial consumer protection, and overall financial health amid the energy emergency,” Remolona said.
