Foreign Currency Deposit Units (FCDUs) of commercial banks
CIRCULAR NO. 16 Series of 1994
Pursuant to Monetary Board Resolution No. 155 dated February 18, 1994, Foreign Currency Deposit Units (FCDUs) of commercial banks, in addition to the authorized transactions allowed under Section 72.2 of Circular 1389, as amended, may engage in direct purchase of export bills of resident exporters subject to the following conditions:
Only export transactions covered by usance letters of credit shall be allowed to be purchased by FCDUs.
The sale of the export bills shall be on a "without recourse" basis to the exporters.
Export bills negotiated/purchased by the bank's Regular Unit and outstanding in its books shall not be allowed to be purchased by its FCDU.
4. All outstanding Export Bills Purchased in the FCDU books, except those classified as bad or uncollectible accounts, shall form part of the authorized asset cover against the FCDU's deposits and other foreign exchange liabilities.
This Circular shall take effect immediately.
FOR THE MONETARY BOARD:
GABRIEL C. SINGSON Governor
More in BSP Circulars
- Compliance on a group-wide basis with the Agri-Agra mandatory allocation of funds(BSP Circular No. 252)
- Consolidated Policies, Rules and Regulations on Medium and Long-Term Foreign Borrowings and Related Transactions(BSP Circular No. 1362)
- Rules and regulations to govern the mandatory allocation of credit resources to small and medium enterprises(BSP Circular No. 147)
- Amendment of Regulations on (a) Real Estate/Chattel Transaction Between the Bank and its Employee(s), Director(s), Officer(s), Stockholder(s) or Related Interest(s), and (b) Lease or Sublease to Third Persons of any Portion/s of its Office Premises(BSP Circular No. 525)
- Amendments to the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions as of 30 June 2016(BSP Circular No. 945)
- Amendments to the Regulations on Unit Investment Trust Funds (UITFs)(BSP Circular No. 1152)
- Amendment to the Basic Standards in the Administration of Trust, Other Fiduciary Accounts (TOFA) and Investment Management Accounts (IMA)(BSP Circular No. 1020)
- Amendments to Foreign Exchange Regulations(BSP Circular No. 937)
Want an analysis of this document?
Ask ASG Legal AI to summarize it, compare it with other rulings, or explain how it applies to your situation — it researches from this same library.