Reduction in Reserve Requirements

BANG}KO SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR ctRculAR N0.1092 Series of 2O2O Subject: Reduction in Reserve Requirements The Governor, upon authority of the Monetary Board in its Resolution No, 423 dated 23 March 2020, approved a reduction of 100 basis points in the reserve requirement (RR) ratios of deposit and deposit substitute liabilities of thrift banks (TBs), rural banks (RBs) and cooperative banks (Coop banks). Section 1. Section 251 of the Manual of Regulations for Banks (MORB) on required reserves against deposit and deposit substitute liabilities, as amended by Circular No. 1082 dated 31 March 2O20,is hereby amended to read, as follows: Section 2sl ACCOUNTS SUBJECT TO RESERVES; AMOUNTS REQUIRED The following rules and regulations shall govern the reserves against deposit and deposit substitute lia bilities. Required reserues ogainst deposit and deposit substitute lidbilities, The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks effective reserve week 31- July 2020 shall be, as follows: Reservable l-iabilities UBs/KBs TBs RBs/ Coop Banks a. Demand Deposits t2% 3% 2% b. NOW accounts 12o/o 3% 2% c. Savings Deposits (excluding basic deposit accounts) L2o/o 3% 7% d, Time Deposits, Negotiable CTDs, Long-term Non- T2OA 3% 2% negotiable Tax Exempt CTDs e, xxx xxx xxx xxx f. Deposit Substitutes (DS) 12o/o 3o/o NA xxx XXX xxx xxx xxx Section 2. This Circular shall take effect on 31 July 2020 after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: ( c t' BENJAMIN E. DIOKNO Governor {t July 2020 A. Mabini St., Malzte 1004 Manrla, Phliiprines. 1532)708-77C: .www,bsp.go!,.ph. [email protected]