Disaster Preparedness: How ready are the banks?
THE PHILIPPINES is among the most vulnerable to the impact of natural disasters and climate change. Last year saw 24 tropical depressions, 20 tropical storms, 16 typhoons, one super typhoon, and at least 13 earthquake episodes.
The cost of these damages goes beyond asset losses: a 2017 World Bank report titled “Unbreakable: Building the Resilience of the Poor in the Face of Natural Disasters,” noted that an estimated one million Filipinos were “plunged into poverty” after Super typhoon Yolanda caused $12.9 billion worth of damage. During the launch of that report, Socioeconomic Planning Secretary Ernesto M. Pernia said that the cumulative impact of natural disasters cost the Philippines an estimated 0.5%-0.6% of economic output annually, which may reduce economic growth by as much as 0.3-0.4 percentage points.
While natural disasters are commonly associated with the agriculture sector, banks are not spared from the wrath of nature. In an email to BusinessWorld, the Bangko Sentral ng Pilipinas (BSP) said that major natural disasters could materially impact banks and other financial institutions’ operations and profitability, especially in terms of provision of credit, loan collection, liquidity constraints, and other disruptions to critical financial services…
Gov’t Embarks on US$5.3-Million Coastal Resilience Project
The Government is embarking on a US$5.3-million project to build the country’s resilience to climate change.
Dubbed the North Eastern Coastal Resilience Building project, it is one of three components under the Enhancing the Resilience of the Agricultural Sector and Coastal Areas to Protect Livelihoods and Improve Food Security Programme.
It is being implemented by the Planning Institute of Jamaica (PIOJ), under the Government of Jamaica/Adaptation Fund Programme (GOJ/AFP).
The project will target the communities of Annotto Bay, St. Mary; and Buff Bay and Orange Bay in Portland.
The major problems to be addressed are retreat of the coastline towards major critical, physical assets within these towns; coastal and…