BSP grants banks, borrowers relief amid energy shock

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

April 16, 2026 | 12:00am

MANILA, Philippines —  The Bangko Sentral ng Pilipinas (BSP) has rolled out a fresh set of regulatory relief measures for banks and their clients, aiming to cushion the impact of rising global energy prices and supply disruptions linked to geopolitical tensions in the Middle East.

The relief package, approved under Monetary Board Resolution 296 dated April 8, comes in response to the government’s declaration of a state of national energy emergency on March 24.

The central bank said the measures are intended to sustain lending activity and support borrowers facing financial strain.

Under the framework, banks may grant temporary grace periods of up to six months on loan payments for affected borrowers, while agricultural loans may be deferred for as long as one year, subject to assessment.

In addition, loans granted to borrowers hit by the energy shock may be temporarily excluded from past due and non-performing loan classifications for up to one year, provided banks comply with notification and reporting requirements.

The BSP said the move allows financial institutions to extend relief without immediately reflecting deterioration in asset quality, a step seen as critical in preventing a spike in bad loans during periods of economic stress.

The central bank emphasized, however, that access to relief must be carefully calibrated.

“BSFIs are expected to exercise prudent judgment in availment of these measures and to ensure that relief is extended only to borrowers whose repayment capacity has been materially affected by the energy emergency,” it said.

It added that the use of regulatory relief should remain “targeted, proportionate and consistent with safe and sound banking practices,” underscoring the need to balance support measures with financial stability risks.

The BSP also called on banks and electronic money issuers to ease the burden on consumers and businesses by temporarily waiving fees on digital transactions.

“BSFIs are likewise strongly encouraged to temporarily suspend fees and charges imposed on the use of online banking platforms or electronic money services, including InstaPay or PESONet electronic fund transfers,” the BSP said, noting that lower transaction costs could reduce the need for physical trips to financial service providers.

The relief measures may be availed for up to one year from the declaration of the energy emergency, marking a broader application compared to previous frameworks that were limited to natural disaster or calamity situations.

The BSP said the policy response is part of its broader mandate to maintain financial stability and protect consumers, even as external shocks threaten to ripple through the domestic economy.

“The BSP remains committed to promoting financial stability, financial consumer protection, and overall financial health amid the energy emergency,” it said.