Revisions to the Manual of Accounts pertaining to definitions of Due from/to Head Office / Branches /Agencies

CIRCULAR NO. 231 Series of 2000

Pursuant to Resolution No. 1740  dated 3 December 1999, the Monetary Board decided, among others:  (1) To subject to reserve requirements similar to deposit liabilities/deposit substitutes the peso deposits, except that utilized as capital, of foreign banks (including Head Office/Branches/Agencies abroad of local branches of foreign banks)  booked under the “Due to Foreign Banks” and “Due To Head Office/Branches/Agencies” accounts; and (2) To amend the existing Consolidated Statement of Condition for purposes of reflecting the composition of the “Due From/To Head Office/Branches/Agencies” account;  determining the capital component of the “Due To Head Office” account; and determining the component of the “Due To Head Office” account subject to reserve requirement.

To comply with the above-cited policy issuances and to align with Circular No. 108 dated 9 May 1996, as amended by Circular No. 201 dated 1 May 1999, expanded and non-expanded commercial banks (EKBs and NEKBs) are, therefore, required to:

1.    Adopt immediately the revisions to the Manual of Accounts pertaining to the definitions of the following accounts: “Due From/To Head Office/Branches/ Agencies” and “Undivided Profits” (Annex “A”);

2.   Adopt the following revised existing report formats, the submission of which is via  cc:Mail  to DCB I/II and to SRSO:

No.

Report Title

Annex

Initial Reporting Period

Transmission Date

1

Consolidated Daily Report of Condition (Main Report)

Annex “B”

Week from 24 to 30 Mar 2000

4 Apr 2000

2

Consolidated Statement of Condition (Schedule 17)

Annex “C”

Month ended 31 Mar 2000

25 Apr 2000

3.    Adopt the revisions to the general ledger templates (Annex “D”) and the standard data structures (Annex “E”) under the GL/SL Unified Reporting Scheme.

For purposes of determining the peso deposits (lodged under “Due to Foreign Banks” and “Due to Head Office/Branches/Agencies” account) subject to reserve requirements, except that utilized as capital by Philippine branch of foreign banks, EKBs and NEKBs shall be guided by the computation shown in Annex “F”.

ALBERTO V. REYES Officer-in-Charge