Senate Bill No. 2121, or the “Emergency Financial Stability and Consumer Protection Act,” has been filed to give the Bangko Sentral ng Pilipinas (BSP) authority to enforce mandatory relief measures for borrowers, depositors, and digital payment users during national emergencies.
The measure, authored by Senator Joel Villanueva, would empower the BSP to issue binding directives once a national emergency is declared and the Monetary Board determines that extraordinary intervention is necessary.
Under the proposal, the BSP may require grace periods, payment deferrals, loan restructuring, and other consumer assistance programs.
It also authorizes the suspension or waiver of fees on electronic payment channels such as InstaPay and PESONet, and the imposition of temporary limits on financial transactions to preserve systemic stability.
Villanueva said the bill addresses gaps exposed during the Covid-19 pandemic and the recent State of National Energy Emergency, when the BSP could only encourage banks to extend relief measures but lacked the legal authority to mandate compliance.
The proposal covers all BSP-supervised financial institutions, including banks, quasi-banks, electronic money issuers, and payment system operators.
It requires that emergency measures be reasonable, targeted, and time-bound, with no directive lasting beyond 180 days after the termination of an emergency unless extended by law.
Financial institutions that comply in good faith would be shielded from liability, while those that fail to comply may face enforcement actions under existing banking laws.
The BSP would also be required to submit a report to Congress within 60 days after the end of an emergency, detailing the measures implemented and their impact.
Villanueva emphasized that the bill ensures the BSP has the tools to act decisively: “When the next crisis comes—and it will come—the BSP should not have to beg. It should be ready to act, and Filipinos should know that relief from their bank is on the way.” (Dhel Nazario)
