July 23, 2021

Despite the epidemic, banks are still willing to restructure loans.

Despite the epidemic, banks continue to appreciate their borrowers’ predicament, according to BSP Governor Benjamin Diokno, who cited decisions on complaints submitted with the central bank.

Diokno said in a video briefing on Friday that although debt collection and credit card loan restructuring requests accounted for just 3% of the over 12,000 consumer complaints received in the first half of the year, nearly one-third, or 31%, were “resolved in favor of the customer.”

According to him, 32% of the total is still being evaluated and coordinated with customers, while 21% is still awaiting action or response from the financial institutions involved.

He noted that approximately 13% of complaints were not addressed in the customers’ favor.

These figures, according to Diokno, indicate that banks and borrowers “conduct direct coordination” and “find common ground in settling their commitments.”

Banks, he added, are “mostly open to discussion.”

“Even with the current difficulties that their clients are experiencing, banks are making concessions to their clients by waiving or reducing fees, interest, and penalties; implementing a more favorable payment scheme; providing options, particularly for payments made through post-dated checks and auto-debit or auto-deduct arrangements; and granting extensions or adjustments of loan maturity,” he continues.

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