Increase in Reserve Requirements

Bangko Sentral ng PiLiPinaS

OFFiCE oF tHE GOVERNoR

CIRCULAR NO. 830

Series of 2014

Subiect : Increase in Reserve Requirements

bank financial institutions with quasi-banking functions (NBQBs). 1-percentage-point increase in the reserve requirements of universal/commercial banks (UBs/KBs), thrift banks (TBs), rural banks (RBs), cooperative banks (Coop Banks), and non- The Monetary Board, in its Resolution No. 500 dated 27 March 2014, approved the

follows: reserves against deposit and deposit substitute liabilities are hereby amended to read, as Section 1. The provisions of the Manual of Regulations for Banks (MORB) on

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liabilities. The rates of required reserves against deposit and deposit substitute liabilities in iocal currency of banks shall be as follows: "Subsection X253.1 Required reserves against deposit and deposit substitute

i. Peso deposits lodged under Due to Head of a foreign bank) h. IBCL (Sec. X343) j. Mortgage/CHM Certificates k. Peso deposits lodged under Due to foreign banks b. "NOW" Accounts f. Deposit substitutes (DS) g. DS evidenced by repo agreements Office/Branches/Agencies Abroad (Philippine branch a. Demand Deposits c. Savings Deposits i. Bonds d. Time Deposits, Negotiable CTDs, Long-Term Non- Negotiable Tax Exempt CTDs e. Long-term Negotiable Certificate of Time Deposits {LTNCTDs} 2. LTNCTDs under Circular No. 824 LTNCTDs under Circular No. 304 Account UBs/KBs n.a 5 19 109 19 19 19 D 19 19 7 3 4 5 n a n.a TBS 0 5 3 I 1 1 4 RBs/Coop Banks n.a n.a na na. na n.a 0 3 4 5 3 L

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A. Mabini St., Malate 1004 Manila, Philippines a (632) 708-7011 * www.bsp.gov.ph [email protected]

trust and other fiduciary accounts -- others " subsection X405.5 Reserves against peso-denominated common trust funds and

"a Reserves against peso-denominated CTFs. xxx

managed peso funds which partake of the nature of a collective investment of peso- denominated CTFs shall be as follows: The required reserves against peso-denominated CTFs and such other

" TBs - 8% " UBs/KBs - 19% " RBs - 4%"

"b . Reserves against TOFA - Others. xxx

"The required reserves against TOFA - Others shall be as follows:

" UBs/KBs -16% " TBs - 8% " RBs - 4%"

Institutions (MORNBFI) on reserves are hereby amended to read, as follows: Section 2. The provisions of the Manual of Regufations for Non-Bank Financial

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maintain required reserves equivalent to 19% of deposit substitute liabilities as defined in Section 95 of R.A. No. 7653, regardless of maturities except: (a) borrowings from the BSP the provisions of Sec. 4601Q; (b) deposit substitutes arising from special financing programs of the Government and/or international Fis; (c) interbank call loan transactions under Sec. 4343Q; and (d) bonds under Sec. 4239Q for which the reserve requirement shali be five through the sale of government securities under repo agreements made in connection with percent (5%) "Sec. 4253Q (2008 - 4246Q) Reserves Against Deposit Substitutes. NBQBs shall

government securities up to the amount equivalent to the adjusted Tier 1 capital of the NBQB shall be subject to the reserve requirement of three percent (3%): Provided, further, That such rate shall apply only to repo agreements, the documentation of which conforms with, and were delivered to a BSP accredited third party custodian as required under existing BSP regulations." "Provided, That deposit substitutes evidenced by repo agreements covering

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" Subsection 4405Q.5 Reserves against peso-denominated common trust funds and trust and Other Fiduciary Accounts (TOFA) - Others

ta Reserves against peso-denominated CTFs. xxx

" The reserves to be maintained shall be 19%.

b. Reserves against TOFA - Others. xxx

" The reserves to be maintained shall be 16%."

This Circular shall take effect on the reserve week starting 11 April 2014.

FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR. I Governor

3_April 2014

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