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(NAR) VOL. 22 NO. 3, JULY - SEPTEMBER 2011

[ BSP Circular No. 732, s. 2011, August 03, 2011 ]

INCREASE IN STATUTORY/LEGAL RESERVE REQUIREMENTS OF PESO DEPOSIT LIABILITIES AND DEPOSIT SUBSTITUTES



The Monetary Board, in its Resolution No. 111 f dated 28 July 2011, approved the increase in the statutory/legal reserve requirements for peso deposit liabilities and deposit substitutes of universal/commercial banks, thrift banks, rural banks, cooperative banks, and non-bank financial institutions (NBFIs)with quasi-banking functions, as follows:
 
BANK/FINANCIAL INSTITUTION
ACCOUNTS
STATUTORY/LEGAL RESERVES

LIQUIDITY RESERVES

From

To
Universal/ Commercial Banks

- Demand
- "NOW"
- Savings
- Time
- Deposit substitutes (DS)

9%

10%

11%
 

- DS evidenced by repo agreements"
- Long-term Negotiable Certificate of Time Deposits (LTNCTDs)

3%
4%
0%
Thrift Banks

- Demand
-"NOW"
- Savings
- Time
- Deposit substitutes (DS)

5%
6%
2%
 - DS evidenced by repo agreements" -LTNCTDs 3% 4% 0%   


BANK/FINANCIAL INSTITUTION
ACCOUNTS
STATUTORY/LEGAL RESERVES
LIQUIDITY RESERVES
From
To
Rural Banks/ Cooperative Banks

- Demand
-"NOW" 11%

5%
6%
0%
     
     
- Savings
 - Time
2 %
3%
- LTNCTDs
3%
4%
NBFIs with quasi-banking function- Deposit substitute
9%
10%
11%
- DS evidenced by repo agreements
3%
4%
0%
"Refer to deposit substitutes evidence by repo agreements covering government securities up to the amount equivalent to the adjusted Tier 1 capital of the bank/quasi-bank and which comply with the conditions provided under Subsection X253.1/4253Q of the Manual of regulations for Banks/Manual of Regulations for Non-Bank Financial Institutions


These new reserve requirement ratios shall take effect on the reserve week beginning on 5 August 2011.


Adopted: 03 August 2011


FOR THE MONETARY BOARD:

(SGD.)AMANDOM.TETANGCO,JR.
Governor
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