Transitory Guidelines on the Reporting of Loans to Large Enterprises as Alternative Compliance with the Reserve Requirements

OFFICE OF THE DEPUTY GOVERNOR FINANCAL SUPERVISION SECTOR MEMORANDUM NO. M-2020-046 To : All Banks and Non-Bank Financial Institutions with Quasi-Banking Functions Subject: Transitory Guidelines on the Reporting of Loans to Large Enterprises as Alternative Compliance with the Reserve Requirements Pursuant to Circular No. 1087 dated 27 May 2020, loans to large enterprises that are utilized as alternative compliance with the reserve requirements shall temporarily be reported under the accounts set forth in Table 1 in the existing templates of the reserve requirement-related reports: Table 1: Reporting of Loans to Qualified Large Enterprises BSP Supervised Report Account Financial Institution Universal/ Commercial Banks Consolidated Daily Report f. Investments in Bonds and of Condition (CDRC) Other Debt Instruments – Govt. (eligible as reserves) 1. Government Securities – Circular No. 10 dated 12/29/93 (Rec. No. 71) Thrift Banks Consolidated Daily Report d. Investments in Bonds and of Condition (CDRC) Other Debt Instruments – Govt. (eligible as reserves) 1. Government Securities – Circular No. 10 dated 12/29/93 (Rec. No. 71) Rural/ Cooperative Banks Weekly Report on Required B. Additional Information and Available Reserves 2. IBODI for Legal Reserves (WRRAR) a. Bangko Sentral Certificates if Indebtedness (Rec. No. 250) Non-Bank Financial Institutions Consolidated Report on F. Available Reserves with Quasi-Banking Functions Required and Available 4. Others (Specify) (NBQBs) Reserves (CRRAR) (Rec. No. 66) – Loans to Qualified Large Enterprises Trust Departments of Special Financing and II. Available Reserves Banks/NBQBs Weekly Reserve Report on B. Eligible Government Securities Trust and Other Fiduciary (Rec. No. 110) Accounts (TOFA) A. Mabini St., Malate 1004 Manila, Philippines * (632) 708-7701* www.bsp.gov.ph* [email protected]

The reporting of loans to large enterprises under the above-mentioned accounts is solely for purposes of determining compliance with the reserve requirements. It shall take effect on 29 May 2020 until 30 December 2021. To further clarify the provisions of BSP Memorandum No. M-2020-029 dated 23 April 2020, the loans granted by NBQBs to Micro, Small and Medium Enterprises (MSMEs) that are utilized as alternative compliance with the reserve requirements shall temporarily be reported under the accounts set forth in Table 2 in the existing templates of the reserve requirement-related report, as follows: Table 2: Reporting of Loans to MSMEs BSP Supervised Report Account Financial Institution Non-Bank Financial Institutions Consolidated Report on F. Available Reserves with Quasi-Banking Functions Required and Available 4. Others (Specify) (NBQBs) Reserves (CRRAR) (Rec. No. 65) – Loans to MSMEs The prevailing guidelines on the submission of the above-mentioned reports shall continue to apply. For compliance. CHUCHI G. FONACIER Deputy Governor 01 June 2020