Amendments to Provisions of the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions pertaining to the Interest Rate Corridor (IRC) System

EIANGKO SEN.rNAL NG PILIPINAS OFFICE OF THE GOVERNOR CIRCULAR NO. 921. Series of 2OLG Subject: Amendments to Provisions of the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions pertaining to the Interest Rate Corridor (lRC)System The Monetary Board, in its Resolution No. 1275 dated 21 July 201.6, approved the amendments to certain provisions of the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) pertaining to the Bangko Sentral ng Pilipinas' monetary operations under the IRC system: Section 1. Subsection X501.1 of the MORB/Section 4501Q.1 of the MORNBFI on the "Repurchase agreements with Bangko Sentral" as amended by Circular No. 913 dated 3 June 2016 is further amended as follows: $X501.1/4601Q.1 Repurchase ogreements with Bangko Sentrol. a. Repurchase agreements may be entered into with the Bangko Sentral subject to the following terms and conditions: (1) Rate. Xxx (2) Term. Xxx (3) Security. Only direct obligations of the National Government and its instrumentalities and political subdivisions, which are fully guaranteed by the Government, with a remaining maturity of at least six (6) days and longer than the tenor of the Repurchase Agreement and which are freely negotiable, unencumbered, and regularly serviced, shall be eligible as underlying instruments for repurchase agreements subject to the collateral requirement prescribed by the Bangko Sentral. (4) Delivery.Xxx (5) Xxx Xxx Section 2. Subsection X601.4a(4) on the "Borrowings from the Overnight Lending Facility (OLF) of the Bangko Sentral" as amended by Circular No. 913 dated 3 June 2016 is further amended as follows:

$X601.4 Borrowings from the Overnight Lending Focility (OLF) of the Bongko Sentrol. Xxx a. Counterparties may avail of borrowings from the Bangko Sentral's OLF subject to the following terms and conditions: (1) Rote. Xxx (2) Term. Xxx (3) Volume. Xxx (4) Eligible Collaterol. Only direct obligations of the National Government or of its instrumentalities and political subdivisions which are fully guaranteed by the Government, with a remaining maturity of not less than six (6) days and which are freely negotiable and are unencumbered, shall be eligible as collateral. The Bangko Sentral shall prescribe rules for the delivery of collatera l. (5) Operating Hours.Xxx Section 3. Annex A of this Circular on the Guidelines for Days Declared as Public Sector Holidays shall replace Appendix 84 of the MORB/Q-49 of the MORNBFt. Section 4. The definition of "Overnight Deposit" and "Overnight Borrowings" in the Manual of Accounts for the Financial Reporting Package (FRP) and Simplified FRP, as amended by Circular 913 dated 3 June 201.6, is further amended as follows: (a) Manualof Accounts 'BALANCE SHEET ACCOUNTS Asset Accounts XXX 3. Due from Bangko Sentral ng Pilipinas (BSP) - This refers to the balance of the deposit account maintained with the BSP. Xxx The Due from BSP accounts shall be broken down as to: (a) Demand Deposit - Xxx (b) Overnight Deposit - This refers to the amount of funds placed in the Bangko Sentral's overnight deposit facility the interest rate of which is set in relation to the policy interest rate. (c) Term Deposit - Xxx

(d) Others - Xxx 4. Xxx Xxx tiability Accounts Xxx 5. Bills Payable (a) Bangko Sentral ng Pilipinas (BSP) - Xxx (a.1) Rediscounting - Xxx (a.2) Emergency Advances - Xxx (a.3) Overnight Borrowings - This refers to the amount availed from the Bangko Sentral's overnight lending facility in order to cover short-term liquidity requirements. (a.4) Overdrafts - Xxx (a.5) Others - Xxx (b) Interbank Loans Payable Xxx XXX,, Section 5. The definition of the "Overnight Deposit Account" in the Manual of Accounts for the FRP for Trust Institutions (FRPTI), as amended by Circular 913 dated 3 June 2016, is further amended as follows: (a)Manual of Accounts "BALANCE SHEET ACCOUNTS Asset Accounts XXX 2. Due from Bangko Sentral ng Pilipinas (BSP) - This refers to the balance of the deposit account maintained with the BSP, which shall be comprised of the following:

(a) Demand Deposit Account - Xxx (b) Overnight Deposit Account - This refers to the amount of funds placed in the Bangko Sentral's overnight deposit facility the interest rate of which is set in relation to the policy interest rate. (c) Term Deposit Account - Xxx 3. Xxx Xxx Xxx" Section 6. This Circular shalltake effect immediately. FOR THE MONETARY BOARD: ze August 2016

GUIDELINES FOR DAYS DECLARED AS PUBLIC SECTOR HOLIDAYS Appendlx 84rF4g[App.ndrx to s€c3. x207, x255.nd x601.r25€O and a801Q.8 (2000 - 426Q.2 and ,t6Ol Q.6]tNiiFx'A fhefollol''IngEble.hEIsthestand*.'opentinggoc€dU'e5o'l'og.ngtose,t.lngPilipinas(Bs4,theBureauo,thefra3urFfR)an.'hePhlllpplnech.t|ngHousac(rHc) atuflng publ/E *ctot ho days, Excepdons to thas.e guLhllnas shel, ba lssuaal by tha BSP when a/cameal nacassary. Bangko Sentral ng Pilipinas Treasury Department Bureau of the PCHC Time of receipt of Public Holiday Reserve Treasury Trading and Settlement Cash Dept Announcement by the BSP PDS PhitPAss Position Withdrawal ODF I OLF TDF I Overnight RRP Facility Auction I Sec. Mkt Manila Regional No clearing; no settlement. PCHC to oe 1. On an ordinary business Closed. TDF offering to -. . tssue wilt ---: an.. decided in aovtsorv --."-- :. Io '-. rts day prior to the date of Closed Closed be rescheduled by the Closed Closed closed Closed KESEN ^ton ;" Closed Closed ..- ... coordination memoers tnal rI will effectivity Auction Committee wtln Heao conlrnue acceplrnq- . ano processrng : LrTItCe .ha.kq 2. On a Saturday or Sunday to take effect the following Monday or on a non-working holiday to take effect the next business day To be decided in a. Undergood weather conditions open open Open Open Open Open Open Reserve Open Open Normal coordination with Head Office No clearing; no b. Under unfavorable settlement. PCHC To be conditions such as bad will issue an Closed. TDF offering to decided in weather, (e.9., Typhoon Non - advisory to its Closed Closed be rescheduled by the Closed Closed Closed Closed Closed Closed coordination signal no. 3), natural Reserve members that it will Auction Committee with Head calamities or civil continue accepting Office disturbances and processing checks No clearing; no settlement. PCHC will issue an ]. Before 9:00am on the Closed. TDF offering to - advisory to "^f,:: _ ,ate of effectivity Closed Closed be rescheduled by the Closed Closed Closed ctosed ^Non Keserve ctosed ctosed 1lt . memoers rnar rt.wilr"::lti;:,,;" :,;. --- Auction Committee with Head continue acceptinq - pro""r.ing urlce "no checks

GUIDELINES FOR DAYS DECLARED AS PUBLIC sEcTOR HOuDAYS Appendlx 84rQ.19[App.ndlx to secs. x207, Xt56.nd x601.6/42s6Q and 4601e.6(2008 - 4245e.2 and {soiA.s[N;Ft:A Bangko Sentrai ngFilipinas Treasury Department Bureau of the Time of receipt of Public Holiday PCHC Trading and Settlement Reserve Treasury Announcement bv the BSP Cash Dept PDS PhiIPASS Position r'Vithdrawal ODF OLF I TDF I Overnight RRp Facitiry Auction I Sec. Mkt Manila Regional Suspended at 12:00pm; Suspended at 12:00pm; to to resume on Day 2 from resume on Day 2lrom To be 4. After 9:00am and before 8:00am to 8:30am. Offering suspended; to B:00am to B:45am. No change in auction decided in 12:00pm on the date of Day Settlement of all resume on Day 2 at Settlement of all Overnight time, settlement will be Open Open Open Reserve Open Open coordination effectivity Overnight Lendings dealt 8:00am and settle until Deposits dealt from Day 1 until 9:00am ot Day 2 with Head from Day 1 until 8:30am 9:00am of Dav 2 until 8:45am of Day 2 shall Office oI Day 2 shall be until be until 9:00am ol Day 2 9:00am of Day 2 Day 1 transactions to Day 1 transactions to Settlement of Day 1 Bid submission at resume from 8:00am to resume from 8:00am to transactions until 8:00am to 8:20am, 8:30 am for value Day'1 8:45 am for value Day 1 9:00am of Day 2 allocation until 8:45am, and settle until 9:00am of and settle until 9:00am of settlement until 9:00am To be Day 2 Day 2 then, ol Day 2 for value Day 1 decided in Day 2 Open Open Open Reserve Open then, Open Normal coordination then, Regular trading and then, with Head settlement hours for Office Regular trading and Regular trading and same day value Regular trading and settlement hours for settlement hours for same transactions, if there is settlement of same day same day value day value transactions. a scheduled auction. value transactions. transactions. To be 5. After'12:00pm on the date No change in trading and and No change in trading No change in trading No change in trading decided in rf effectivity settlement hours settlement hours and settlement hours and settlement hours Open Open Open Reserve Open Open Normal coordination with Head Office

GUIDELINES FOR DAYS DECLARED AS PUBUC SECTOR HOLIDAYS App.ndh 8.arQ-a9[Appondir to S€c!. X207, Xt55.nd X6O1.6ra256Q and {8OlQ.6 (2008 - 4246Q.2 and a60tQ.5}lNr,iFl-A Banqko Sentral nq Pilipinas Treasury Department Bureau of the Time of receipt of Public Holiday PCHC Reserve Treasury Announcement by the BSP Trading and Settlement Cash Dept PDS PhiIPASS Position Withdrawal ODF I Olr I TDF I Overnighr RRP Facitiry Auction I Sec. Mkt Manila Regional i. In case the suspension of arork is extended to Day 2 Closed. lf there were TDF transactions on No clearing; no Closed; Closed; Closed; Day 1, settlement will lf the Overnight RRP settlement. PCHC lf the OLF was to oe lf the ODF was suspended continue from 8am to offering was suspended '. .'---. wilt tssue an -.. decided in on Dav 1. Dav 1 suspended on Day 1, Day gam on Day 3. lf the Non - aovrsorv a. Before 9:00am of Day 2 uav z on Day 1, Day 1 Closed Closed Closed Closed Closed --."---i. Io '-. rts :.- ... coordination transactions and 1 transactions and TDF offering was Reserve memDers tnat rt \,vttl settlement will resume on settlement will resume on suspended on Days 1 transactions will be wttn Heao moved to Day 3 at conunue acceplrng - ci^ (./iltce Day 3 at 8:00am Day 3 at 8:00am and 2, the Auction ano processrng 8:00am Committee will checks reschedule. Bid submission from Day'1 transactions to Day 1 transactions to Settlement of Day 1 8:00am to 8:20am, resume from 8:00am to resume from 8:00am to transactions, if any, until allocation until 8:45am. 8:45 am and settle for 8:30 am and settle for 9:00am of Day 3 Settlement for value value Day 1 until 9:00am of value Day 1 until 9:00am To be Day 1 until 9:00am of Day 3 of Day 3 then, decided in Day 3 Day 3 Open Open Open Reserve Open Open Normal coordination then, then, Regulartrading and then, with Head settlement hours for Office Regular trading and Regular trading and same day value Regular trading and selllement of same day settlement of same day transactions if there is a settlement of same day value transactions. valuetransactions. scheduledauction. value transactions.

GUIDELINES FOR DAYS DECLARED AS PUBLIC SECTOR HOLIDAYS Appcndlx S,gQ.tgtAppendlx to Seca. )C07, X256 and x601.5ra256o and a80lQ.8 (moS - a2a6o.2.nd 460la.6)tNi;i:a Bangko Sentral ng Pilipinas Treasury Department Bureau of the Time of receipt of Public Holiday PCHC Reserve Treasury Announcement by the BSP Trading and Settlement Cash Dept PDS PhiIPASS Position Withdrawal ODF I Olr I rOr I Overnight RRp Facitity Auction Sec. Mkt Manila Regional lf the overnight RRP any, Day 1 transactions, if any, Day 1 transactions, if to settlement of Day 1 offering to resume from g:00am to to resume from g:00am was suspended g:45 am and settle tor 8:30 am and setile for on Day 1' bid transactions' if any, until submission from value Day 1 until 9:00am of value Day 1 until g:00ar Day 2 oI Day 2 " 9:00am ot Day 2 B:00am to 8:20am' allocation until 8:45am. then' then' then' settlement for value To be g:00am but before Day 1 until 9:00am of - b. After - decided in rz,oopr.io"iz--- owz Day2suspendedat Day2suspendedat Regulartradinghours Day2 open open Open Reserve Open Open Normal coordination 12:00pm; to be resumed 2:00pm; to be resumed , i' tl,T" d1y.Y"lu". with Head 1 on Day 3 from 8:O0am to on Day 3 from 8:00am to t'llllltloltliltl?*i. then, Office 8:45am. Settlement of all 8:30am. settlement of all a scheduled auction' overnisht Deposits deart overnisht Lendinss dJr .-_::tll:T:lt :,1,?iv 2 offerins for Dav2 ^,, - from oay 2 until 8:45am of from Day 2 until a'goar t'anla^clions will be until suspended at 12:00pm; Day 3 shall be until 9:00am of Day 3 shall be until 9:00am of Day 3 to be resumed on Day 3 of Day 3. 9:00am of Day 3. at 8:00am and settle until 9:00am of Day 3 Day 2 transactions to Bid submission from Day 2 transactions to setflement ot Day 2 resume from 8:00am to to 8:20am, resume from 8:ooam to transactions, if any, until .8:00am 8:4bam and settle for value 8:30am and settle for g:00am of Day 3 allocation until 8:45am' Day 2 until 9:00am of Day Value Day 2 until 9:00am Settlement for value DaY 2 until 9:ooam of To be 3 of DaY 3 tnen' decided in DaY 3 Day 3 Open Open Open Reserve Open Open Normal coordination then, then, Regular trading and wilh Head then' settlement hours for Office Regular trading and Regular trading and same day value settlement of same day settlement of same day transactions if there is a Regular trading and value transactions. settlement of same day value transactions. scheduled auction. value transactions.

':- GUIOELINES FOR DAYS DECLARED Ag PUBLIC SECTOR HOLIDAYS Appendlx 84/Q.4glAppendlx to S€ca. X207, X256 and X501.6r4256Q and 4601Q.5 (2008 - 42a6Q.2 and a601Q.6tNNEx'a Banqko Sentral no Pilioinas Treasury Deoartment Bureau of the PCHC Time of receipt of Public Holiday Reserve Treasury Trading and Settlement Cash Dept Announcement by the BSP PDS PhiIPASS Position ODF I Olr I TDF I Overnight RRP Facility Auction I Sec. Mkt Manila Regional lf the Overnight RRP offering was suspended Day 1 transactions, if any, Day '1 transactions, if any, Settlement of Day 1 on Day 1, bid to resume from 8:00am to to resume from 8:00am to transactions, if any, until submission from 8:45am and settle for value 8:30am and settle for 9:00am of Day 2 8:00am to 8:20am, Day 1 until 9:00am of Day Value Day 1 until 9:00am allocation until 8:45am To be ol Day 2 lhen, Settlement for value decided in c. After 12:00pm ol Day 2 Day 2 Day 1 until 9:00am of Open Open Open Reserve Open Open Normal coordination then, then, Regular trading and Day 2 with Head settlement hours for Office and Regular trading Regular trading and same day value then, day settlement of same settlement of same day transactions if there is a value transactions. value transactions. scheduled auction. Regular trading and seltlement of same day value transactions. To be /. In case the suspension of decided in rork does not apply to all No change in trading and No change in trading and No change in trading No change in trading Open Open Open Reserve Open Open Normal coordination Jovernment offices (Manila settlement hours settlement hours and settlement hours and settlement hours with Head )ay, Quezon City Day, etc) Office Notes: The BSP consulted with and obtained the agreement of BAP, ACI and MART in formulating these standard operating procedures. 2.