Reduction in Reserve Requirements

Bnruexo SeNrnaL Ne Prurprruls OFFICE OF THE GOVERNOR crRcurAR No.lQq3 Series of 2019 Subject: Reduction in Reserve Requirements In its Resolution No. 1820 dated 21 November 20L9, the Monetary Board approved the reduction in the reserve requirement ratios of selected reservable liabilities of banks and non-bank financial institutions with quasi-banking functions (NBQBs). Section 1. Section 25L of the Manual of Regulations for Banks (MORB) on required reserves against deposit and deposit substitute liabilities, as amended by Circular Nos. 1041dated 29 May 20L9,1054 dated 11 October 20L9,1055 dated 22 October 2019 and L061 dated 25 November 20L9, are hereby further amended to read, as follows: Section 2Sl ACCOUNTS SUBJECT TO RESERVES; AMOUNTS REQU|RED The following rules and regulations shall govern the reserves against deposit and deposit substitute lia bilities. Required reserues agoinst deposit ond deposit substitute liabilities. The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks effective reserve week starting 6 December 2OL9 shall be as follows: Reservable Liabilities UBs/KBs TBs RBs/ Coop Banks a. Demand Deposits L4% 4% 3% b. NOW accounts t4% 4% 3% c: Savings Deposits (excluding basic deposit accounts) L4% 4% 3% d. Time Deposits, Negotiable CTDs, Long-term Non- L4% 4% 3% negotiable Tax Exempt CTDs e. xxx xxx xxx xxx f. Deposit Substitutes (DS) t4% 4% NA XXX xxx xxx xxx i. Peso deposits lodged under Due to foreign banks L4% NA NA j. Peso deposits lodged under Due to Head L4% NA NA Office/Branches/Agencies Abroad (philippine branch of a foreign bank) k. xxx xxx xxx xxx

Section 2. Section 4253Q of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) on required reserves against deposit substitutes, as amended by Circufar Nos. 1041 dated 29 May 2OL9, 1054 dated 11 October 2OI9 and 1061 dated 25 November 2019, is hereby amended to read, as follows: Section 4253Q RESERVES AGAINST DEPOSIT SUBSTITUTES. NBQBs shall maintain required reserves equivalent to fourteen percent (14%l of deposit substitute liabilities as defined in Section 95 of R.A. No. 7553, as amended by R.A. No. 11211, regardless of maturities except: (a) xxx; (b) xxx; and (c) xxx effective reserve week starting 5 December 20L9. Section 3. This Circular shall take effect on 6 December 2019 after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: ( c (, BENJAMIN E. DIOKNO Governor 3 December 2019