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(NAR) VOL. 9 NO. 2 / APRIL - JUNE 1998
[ BSP CIRCULAR NO. 158, March 20, 1998 ]
RESERVE REQUIREMENT ON ALL TYPES OF PESO DEPOSIT AND DEPOSIT SUBSTITUTE LIABILITIES
Pursuant to Monetary Board Resolution No. 369 dated 12 March 1998, amending the composition of the reserve requirement on all types of peso deposit and deposit substitute liabilities of expanded commercial banks, commercial banks and non-banks with quasi-banking (NBQBs) functions and certain types of deposit and deposit substitute liabilities of thrift banks and rural banks, and Monetary Board Resolution No. 403 dated 18 March 1998, advancing the effectivity date of the abovementioned changes, Books I, II, III and IV of the Manual of Regulations are hereby amended as follows:
Book I - Expanded Commercial Banks and Commercial Banks
SECTION 1. Sections 1203, 1214, 1225, 1232, 1236 and 1253 of Book 1 of the Manual of Regulations are hereby amended by reducing the required reserves against demand and savings deposits, NOW accounts, time deposits and negotiable certificate of time deposits regardless of maturity of banks with expanded commercial banking authority, commercial banks, the Land Bank of the Philippines, the Development Bank of the Philippines and the Al-Amanah Islamic Investment Bank of the Philippines from thirteen percent (13%) to ten percent (10%).
SECTION 2. Section 1283 of Book I of the Manual of Regulations is hereby amended by reducing the required reserves against deposit substitute liabilities regardless of maturity from thirteen percent (13%) to ten percent (10%).
Book II - Thrift Banks
SECTION 3. Section 2203, Section 2225 and Section 2253 of Book II of the Manual of Regulations are hereby amended by reducing the required reserves against demand deposits and NOW accounts from thirteen percent (13%) to ten percent (10%).
SECTION 4. Section 2283 of Book II of the Manual of Regulations is hereby amended by reducing the required reserves against deposit substitute liabilities regardless of maturity from thirteen percent (13%) to ten percent (10%).
SECTION 5. Sections 2232, 2236, and 2253 of Book II of the Manual of Regulations are hereby amended by reducing the required reserves against time deposits and negotiable certificates of time deposits regardless of maturity from eleven percent (11%) to eight percent (8%).
SECTION 6. Sections 2214 and 2253 of Book II of the Manual of Regulations are hereby amended by reducing the required reserves against savings deposits from eleven percent (11%) to ten percent (10%).
Book III - Rural Banks
SECTION 7. Sections 3203 and 3253 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against demand deposits from thirteen percent (13%) to ten percent (10%).
SECTION 8. Sections 3225, 3236, and 3253 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against NOW accounts from thirteen percent (13%) to ten percent (10%).
SECTION 9. Under Sections 3214 and 3232 of Book III of the Manual of Regulations, the required reserves against savings and time deposits regardless of maturity shall remain at five percent (5%).
Book IV - Non-Bank Financial Intermediaries
SECTION 10. The first paragraph of Section 4283Q of Book IV of the Manual of Regulations is hereby amended by reducing the required reserves against deposit substitute liabilities, regardless of maturity, from thirteen percent (13%) to ten percent (10%).
Books I, II, III and IV
Liquidity Reserves for all Financial Intermediaries
SECTION 11. On top of the regular reserve requirements, liquidity reserve ratios against peso demand, savings, time deposit and deposit substitute liabilities shall be raised, as follows:
Form and Composition of Regular Reserves for All Financial Intermediaries
SECTION 12. Regular reserves shall be maintained in the same form and composition as provided in Sections 1254, 2254, 3254, 1283, 2283.1, 3283, and 4283Q of Books I, II, III, and IV, respectively, of the Manual of Regulations for Banks and Other Financial Intermediaries.
This Circular shall take effect 20 March 1998.
Adopted: 20 March 1998
(SGD.) GABRIEL C. SINGSON
Governor
Book I - Expanded Commercial Banks and Commercial Banks
SECTION 1. Sections 1203, 1214, 1225, 1232, 1236 and 1253 of Book 1 of the Manual of Regulations are hereby amended by reducing the required reserves against demand and savings deposits, NOW accounts, time deposits and negotiable certificate of time deposits regardless of maturity of banks with expanded commercial banking authority, commercial banks, the Land Bank of the Philippines, the Development Bank of the Philippines and the Al-Amanah Islamic Investment Bank of the Philippines from thirteen percent (13%) to ten percent (10%).
SECTION 2. Section 1283 of Book I of the Manual of Regulations is hereby amended by reducing the required reserves against deposit substitute liabilities regardless of maturity from thirteen percent (13%) to ten percent (10%).
Book II - Thrift Banks
SECTION 3. Section 2203, Section 2225 and Section 2253 of Book II of the Manual of Regulations are hereby amended by reducing the required reserves against demand deposits and NOW accounts from thirteen percent (13%) to ten percent (10%).
SECTION 4. Section 2283 of Book II of the Manual of Regulations is hereby amended by reducing the required reserves against deposit substitute liabilities regardless of maturity from thirteen percent (13%) to ten percent (10%).
SECTION 5. Sections 2232, 2236, and 2253 of Book II of the Manual of Regulations are hereby amended by reducing the required reserves against time deposits and negotiable certificates of time deposits regardless of maturity from eleven percent (11%) to eight percent (8%).
SECTION 6. Sections 2214 and 2253 of Book II of the Manual of Regulations are hereby amended by reducing the required reserves against savings deposits from eleven percent (11%) to ten percent (10%).
Book III - Rural Banks
SECTION 7. Sections 3203 and 3253 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against demand deposits from thirteen percent (13%) to ten percent (10%).
SECTION 8. Sections 3225, 3236, and 3253 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against NOW accounts from thirteen percent (13%) to ten percent (10%).
SECTION 9. Under Sections 3214 and 3232 of Book III of the Manual of Regulations, the required reserves against savings and time deposits regardless of maturity shall remain at five percent (5%).
Book IV - Non-Bank Financial Intermediaries
SECTION 10. The first paragraph of Section 4283Q of Book IV of the Manual of Regulations is hereby amended by reducing the required reserves against deposit substitute liabilities, regardless of maturity, from thirteen percent (13%) to ten percent (10%).
Liquidity Reserves for all Financial Intermediaries
SECTION 11. On top of the regular reserve requirements, liquidity reserve ratios against peso demand, savings, time deposit and deposit substitute liabilities shall be raised, as follows:
a) For expanded commercial banks, commercial banks, and non-bank financial intermediaries with quasi-banking functions (NBQBs), from four percent (4%) to seven percent (7%);The required liquidity reserve may be maintained in the form of short-term market-yielding government securities purchased directly from the BSP-Treasury Department, pursuant to Circular No. 10 dated 29 December 1993.
b) For thrift banks, from three percent (3%) to six percent (6%); and
c) For rural banks, from zero to three percent (3%) against their demand deposit liabilities.
Form and Composition of Regular Reserves for All Financial Intermediaries
SECTION 12. Regular reserves shall be maintained in the same form and composition as provided in Sections 1254, 2254, 3254, 1283, 2283.1, 3283, and 4283Q of Books I, II, III, and IV, respectively, of the Manual of Regulations for Banks and Other Financial Intermediaries.
This Circular shall take effect 20 March 1998.
Adopted: 20 March 1998
(SGD.) GABRIEL C. SINGSON
Governor