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108 OG No. 3, 303 (January 16, 2012)

[ BSP CIRCULAR NO. 726 SERIES OF 2011, June 24, 2011 ]

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

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

The Monetary Board, in its Resolution No. 871 dated 16 June 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) 		8% 9% 11%
  -DS evidenced by repo agreements1
      -Long-term Negotiable Certificate of Time Deposits (LTNCTDs)		 2% 3% 0%
Thrift Banks -Demand
-"NOW"
-Savings
-Time
-Deposit substitutes    		 4% 5% 2%
  -DS evidenced by repo agreements1
-LTNCTDs    		 2% 3% 0%
Rural Banks/Cooperative Banks -Demand
-"NOW"		 4% 5% 0%
  -Savings
-Time    		 1% 2%
  -LTNCTDs 2% 3%
NBFIs with quasi-banking functions -Deposit substitutes 8% 9% 11%
-DS evidenced by repo agreements1 2% 3% 0%
1 Refer to deposit substitutes evidenced 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 24 June 2011.


FOR THE MONETARY BOARD

(Sgd.) NESTOR A. ESPENILLA, JR
Officer-In-Charge

27 June 2011

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