To implement item 3 of Circular 358 dated November 10, 2002

MEMORANDUM Series of 2003

TO:       All Commercial and Thrift Banks

This is to implement item 3 of Circular 358 dated November 10, 2002 whereby the deposits of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) with Authorized Agent Banks (AABs) are subject to reserves against deposits but exempted from liquidity floor on government deposits.   For this purpose, please effect the following amendments:

Schedule Reference

Effective Implementation Date

I.   Commercial Banks

A.   Consolidated Statement of Conditions

Schedule 13 – Schedule of Government Funds Held/Compliance with Liquidity Floor Requirement Month-End March 31, 2003

B.   Consolidated Daily Report of Condition

Page 5 of the Report

Week Ending February 28, 2003

II.   Thrift Banks

A.   Consolidated Statement of Condition

Schedule 2G – Schedule of Government Funds Held/Compliance with Liquidity Floor  Requirement

Month- End March 31, 2003

B.   Consolidated Daily Report of Condition

Page 3 of the report

Week Ending February 28, 2003

The amended report formats of the above schedules are attached for your ready reference.

For compliance.

ALBERTO V. REYES Deputy Governor