Reduction in Reserve Requirements

BANCKo SerurneL NG PILIPINAs OFFICE OF THE GOVERNOR crRcurAR No.ggz Series of 2018 Subject: Reduction in Reserve Requirements ln its Resolution No. 194 dated 8 February 20L8, the Monetary Board approved the lOO-basis-point reduction in the reserve requirement ratios of universal/commercial banks (UBs/KBs) and non-bank financial institutions with quasi-banking functions (NBQBs). Section 1. The provisions of the Manual of Regulations for Banks (MORB) on reserves against deposit and deposit substitute liabilities are hereby amended to read, as follows: "xxx "5X253.1 Required reserves agoinst deposit and deposit substitute liohilities. The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks starting reserve week 2 March 2018 shall be as follows: UBs/KBs TBs RBs/ Coop Banks a. Demand Deposits L9% 8o/o 5% b. NOW accounts 79% 8o/o 5% c. Savings Deposits t9% 8% 3% d. Time Deposits, Negotiable Certificates of Time L9% 8% 3o/o Deposits (CTDs), Long-term Non-negotiable Tax Exempt CTDs e. Long-term negotiable certificates of time deposits L. LTNCTDs under Circular No. 304 4o/o 4% 4% 2. LTNCTDs under Circular No. 842 7% 7% 7o/o f. Deposit Substitutes (DS) L9o/o 8% NA g. DS evidenced by repo agreement o% o% NA h. IBCL (Sec. X343) 0o/o Oo/o o% i. Bonds 6% 6% NA j. Mortgage/CHM cert. NA 6% NA k. Peso deposits lodged under Due to foreign banks L9% NA NA l. Peso deposits lodged under Due to Head L9% NA NA Office/Bra nches/Age ncies Abroad (Ph ilippine branch of a foreign bank) "xxxt'

"9X405.5 Reserues ogainst peso-denominoted common trust funds ond trust and other fiduciory accounts - others "a. Reserves ogoinst peso-denominoted CTFs. xxx The required reserves against peso-denominated CTFs and such other managed peso funds which partake of the nature of a collective investment of peso- denominated CTFs shall be as follows: " uBs/KBs - t9o/o " TBs -9To " RBs- 4%o starting reserve week 2 March 2018. ub. Reserves ogainst TOFA - Others. xxx "xxx" Section 2. The provisions of the Manualof Regulations for Non-Bank Financial Institutions (MORNBFI) on reserves are hereby amended to read, as follows: "sec. 4253Q Po08 - 4246Q) Reserves Against Deposit substitutes. NBeBs shall maintain required reserves equivalent to nineteen percent (I9%l of deposit substitute liabilities as defined in section 95 of R.A. No. 7653, regardless of maturities except: (a) xxx; (b) xxx; (c) xxx; and (d) xxx starting reserve week 2 March 20L8. ttxxx" "94405Q.5 Reserues agdinst peso-denominoted common trustfunds and trust ond Other Fiduciary Accounts (TOFA) - Others " a. Reserves agoinst peso-denominated CTFs. xxx "The reserves to be maintained shall be L9% starting reserve week 2 March 2018. "xxx"

Section 3. This Circular shalltake effect on 2 March 2018. FOR THE MONETARY BOARD: [S r"brr.ry 2018