BSP CIRCULAR NO. 632, S. OF 2008, November 19, 2008

[ BSP CIRCULAR NO. 632, S. OF 2008, November 19, 2008 ]

REDUCTION IN THE STATUTORY/LEGAL RESERVE REQUIREMENTS FOR PESO DEMAND, “NOW”, SAVINGS, TIME DEPOSIT LIABILITIES AND DEPOSIT SUBSTITUTES OF UNIVERSAL BANKS, COMMERCIAL BANKS, THRIFT BANKS, RURAL AND COOPERATIVE BANKS, AND QUASI-BANKS

The Monetary Board, in its Resolution No. 1448 dated 6 November 2008, approved the reduction in the statutory/legal reserve requirements for peso demand, “NOW”, savings, time deposit liabilities and deposit substitutes of universal banks, commercial banks, thrift banks, rural and cooperative banks, and quasi-banks, as follows:

BANK/ACCOUNTS FINANCIAL INSTITUTION

STATUTORY/LEGAL RESERVES

LIQUIDITY RESERVES

From

To

Universal Banks/Commercial Banks

- Demand - Savings - Time

10%

8% 11%

0%

- Deposit Substitutes

- “NOW” - Long-term Negotiable CTDs

9% 2%

8% 2%

Thrift Banks

- Demand - “NOW” - Savings - Time

6%

4%

2%

- Deposit Substitutes

- Long-term Negotiable CTDs

2%

2%

0%

Rural Banks Cooperative Banks

- Demand

6%

4%

0%

- “NOW” - Savings

2%

1%

- Time - Long-term Negotiable CTDs

2%

2%

Quasi Banks

- Deposit Substitutes

10%

8%

11%

Required reserves for peso-denominated Common Trust Funds (CTFs) and such other similarly managed funds, as well as those for Trust and Other Fiduciary Accounts— Others ( TO FA-Others) shall remain at current levels.

These new reserve requirement ratios shall be effective starting with the reserve week beginning 14 November 2008.

Adopted: 19 Nov. 2008

FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.

Governor