Bangko Sentral ng Pilipinas (BSP) Governor-in-Charge Nestor A. Espenilla Jr. on Saturday said over P500 billion of the banking sector’s total loan portfolio is exposed because of tropical storms “Ondoy” and “Pepeng.”

This amount is 24 percent of the industry’s P2.3 trillion total loan portfolios. “We realize that this has potentially significant consequences for banks and their customers,” Espenilla told members of the Rural Bankers Association of the Philippines during its 52nd Charter Anniversary this week.

He said the most vulnerable of the loans are those to individual and retail borrowers while big banks loans are not as equally affected. The two typhoons damaged Metro Manila areas and parts of Luzon. Manila accounts for a big chunk of the gross domestic product accounting or about 30 percent. “It’s too soon to tell the actual extent of the damage,” said Espenilla.

“The BSP has quickly responded by offering a package of regulatory and rediscounting relief measures to help banks cope with the problems (as well) as to encourage them to, in turn, provide relief to their own customers to help the, get back on their feet sooner,” he added.

Last October 2, the BSP approved six relief measures for banks with branches hit by Ondoy, and on Thursday, it released P5 billion special rediscounting loans to help SMEs and microfinance entities affected by the calamity.

One of the regulatory measures is the granting a 60-day grace period to all banks with rediscounting obligations with the BSP which will apply to loans availed of as of September 28. This will cover all rediscounting banks with head office or with branches or with end-user borrowers in the affected areas except those with serious violations of findings with the BSP’s supervision and examination sector.