Reminder on Testing the Overnight Lending Facility (OLF) of the BSP as Part of Liquidity Contingency Planning

BaNoxo SETINNL NG PIUIPINAS OFFICE OF THE DEPUW GOVERNOR FINANCIAT SUPERVISION SECTOR MEMORANDUM NO. M-2018-Q23 To ALt BANKS AND NON.BANKS WITH QUASI.BANKING FUNCTIONS (NBQBS) Subject : Reminder on Testing the Overnight Lending Facility {OtF} of the BSP as Part of Liquidity Contingency Planning Banks/NBQBs that identify the OLF of the BSP as a secondary source of liquidity in their respective contingency funding plans (CFPs) are reminded to incorporate availments from the said facility in the regular testing of the CFP to ensure that the plan can be efficiently executed. The foregoing is consistent with the supervisory expectations set out in the Guidelines on Liquidity Risk Management under Appendix 74/Q-qqa of Subsection XL76/4L76Q of the Manual of Regulations for Banks/NBFls, specifically relating to the funding sources during stressed conditions. For compliance. ,#' G. FONACIER Deputy Governor 19 nugust 2018