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(NAR) VOL. 5 NO. 3 / JULY - SEPTEMBER 1994

[ BSP CIRCULAR NO. 38, s. 1994, August 02, 1994 ]

AMENDMENTS TO BOOKS I, II, III AND IV OF THE MANUAL OF REGULATIONS



Pursuant to Monetary Board Resolution No. 651 dated July 14, 1994, reducing the reserve requirement by three percentage points on all types of deposits and deposit substitutes of commercial banks and non-banks with quasi-banking (NBQBs) functions and certain types of deposits and deposit substitutes of thrift banks and rural banks effective August 15, 1994, Books I, II, III and IV of the Manual of Regulations are hereby amended as follows:

Book I
Commercial Banks

SECTION 1. Section 1203, Section 1214, Section 1225, Section 1232, Section 1236 and Section 1253 of Book I of the Manual of Regulations are hereby amended by reducing the required reserves against demand and savings deposits, NOW accounts, and time deposits regardless of maturities of banks with expanded commercial banking authority, commercial banks, the Land Bank of the Philippines and the Philippine Amanah Bank from twenty-two percent (22%) to nineteen percent (19%).

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 maturities from twenty-two percent (22%) to nineteen percent (19%).

Book II
Thrift Banks
(including the Development Bank of the Philippines)

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 twenty-two percent (22%) to nineteen percent (19%).

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 maturities from twenty-two percent (22%) to nineteen percent (19%).

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 from nineteen percent (19%) to sixteen percent (16%).

SECTION 6. Section 2214 and 2253 of Book II of the Manual of Regulations is hereby amended by reducing the required reserves against savings deposits from nineteen percent (19%) to sixteen percent (16%).

Book III
Rural Banks

SECTION 7. Section 3203 and Section 3253 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against demand deposits from twenty-two percent (22%) to nineteen percent (19%).

SECTION 8. Section 3225, 3236, and Section 3253 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against NOW accounts from twenty-two percent (22%) to nineteen percent (19%).

SECTION 9. Sections 3214 and 3232 of Book III of the Manual of Regulations are hereby amended by reducing the required reserves against savings and time deposits from fourteen percent (14%) to eleven percent (11%).

Book IV
Non-Banking 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 maturities, from twenty-two percent (22%) to nineteen percent (19%).

SECTION 11. All reserve requirements on all types of deposit and deposit substitute liabilities of banks and NBQBs are inclusive of the authorized investment in short-term, market yielding government securities purchased directly from the BSP equivalent to not more than two percent of the combined deposit and deposit substitute liabilities of these institutions, pursuant to Circular No. 10, dated December 29, 1993.

Adopted: 2 Aug. 1994

(SGD.) GABRIEL C. SINGSON
Governor

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