Maintenance of a special account with BSP Accounting Department for purposes of compliance with the mandatory allocation to small enterprises

CIRCULAR LETTER Series of 1993

TO : All Commercial Banks and Thrift Banks

In connection with Circular No. 1288 as amended by Circular No. 1374 on the maintenance of a special account with BSP Accounting Department for purposes of compliance with the mandatory allocation to small enterprises, the following procedures shall be adopted:

1. In case any bank desires to fund its special account (Demand Deposit — Circular No. 1288 as amended) with cash deposits, it shall deposit directly with BSP Cash Department. A copy of either the deposit slip or a written advice of such cash deposit shall be furnished the Accounting Department for credit to the special account, and the appropriate SES Department. Any further deposit or withdrawal of such cash deposit shall be advised the Accounting Department and the appropriate SES Department.

2. In case any bank desires to fund its special account (Demand Deposit — Circular No. 1288 as amended) by transfers of amounts from its "Due from BSP" account, the bank shall advise the BSP Accounting Department, copy furnished the appropriate SES Department. Such transfers to the Special Account shall not be available for reserve or other purposes unless appropriately advised by the bank.

The balance of the special account under Demand Deposit — Circular No. 1288, as amended shall be included in all reports to BSP among the Funds Set Aside from Small Enterprises Credit Required Under R.A. No. 6977.

Please be guided accordingly.

FELICIANO L. MIRANDA, JR. Deputy Governor