Reduction in Reserve Requirements

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR CIRCULAR NO. ll75 Series of 2023 Subject: Reduction in Reserve Requirements The Monetary Board, in its Resolution No. 727 daied 08 June 2023, approved the reduction in the reserve requirement (RR) ratios of deposit and deposit substitute liabilities of banks and non-bank financial institutions with quasi- banking functions (N BQBs). Section l. Section 25.l of the Manual of Regulations for Banks (MORB) on Required reseryes ogoinst deposit and deposit substitute liobilities, as amended by Circular No. ll54 dated 14 September 2022, is hereby further amended to read, as follows: 2SI ACCOUNTS SUBJECT TO RESERVES; AMOUNTS REQUIRED The following rules and regulations shall govern the reserves against deposit and deposit substitute liabilities. Required reseryes ogoinst deposit ond deposit substitute liobillties. The rates of required reserves against deposit and deposit substitute liabilities in local currencv of banks effective reserve week 30 June 2023 shall be, as follows: Digital RBs/Coop Reservable Liabilities UBs/KBs TBs Banks Banks a. Demand Deposits 9.5% 60/o 2o/o lo/o b. NOW accounts 9.5% 6% 2o/o fo/o c. Savings Deposits 9.5o/o 60/o 2o/o fo/o (excluding basic deposit accounts) d. Time Deposits, Negotiable 9.5% 60/o 2o/o lo/o CTDs, Long-Term Non- Negotiable Tax Exempt CTDs C. XXX XXX XXX XXX XXX f. Deposit Substitutes (DS) 9.5o/o 60/o 2% NA XXX XXX XXX XXX XXX XXX Section 2. Section 2ll-Q of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) on Reserves against deposit substitutes is hereby amended to read, as follows: 2il-Q RESERVES AGAINST DEPOSIT SUBSTITUTES

NBQBS shall maintain required reserves equivalent to nine and a half percent (9.5%) of peso-denominated deposit substitute liabilities as defined in Section 95 of R.A. No. 7653, as amended by R.A. No. l'l2ll, regardless of maturities exceDt: A. XXX; b. xxx; and C. XXX effective reserve week startinq 3O June 2023. Section 3. This Circular shalltake effect on 30 June2023 after its publication either in the Oflicial Cazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: f-c-A*-lL FELIPE M. MEDALLA Covernor eX June 2023