Reduction in the Reserve Requirement of Bonds

BANEKO SENTRA,L NG- PILIP|NAS OFFICE OF THE GOVERNOR ctRcutAR No.1054 Series of 2019 Subject: Reduction in the Reserue Requirement of Bonds In its Resolution No. 1527 dated 3 October:20t9,the Monetary Board approved the reduction in the reserve requirement ratio of bonds issued by banks and non-bank financial institutions with quasi-banking functions (NBQBs). Section 1. Section 251 of the Manual of Regulations for Banks (MORB) on the required reserves against deposit and deposit substitute liabilities is hereby amended to read, as follows: Section 251 ACCOUNTS SUBJECT TO RESERVES; AMOUNTS REQUIRED The following rules and regulations shall govern the reserves against deposit and deposit substitute liabilities. Required reserues against deposit and deposit substitute liobilities. The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks effective reserve week 31 May 2019 shall be as follows: Reserva ble Lia bilities UBs/KBs TBs RBs/ Coop Banks a. xxx xxx i. Bonds 3/o3 3%3 NA xxx L/ xxx 2/ xxx 3/ Effective reserve week 1 November 2019 Section 2. Subsection 4253Q of the Manual of hegulations for Non-Bank Financial Institu- tions (MORNBFI) on reserves against deposit substitutes is hereby amended, as follows: Sec. 4253Q eO08 - 4246Q) Reserues Against Deposit Substitutes. NBQBs shall maintain required reserves equivalent to seventeen percent (17%l of- deposit substitute fiabif itiesl/ as defined in section 95 of R.A. No. 7653, as amended by R.A. No. 11211, regardless of maturities except:

I (a)m<; )m( (d) bonds under Sec. 4239Q for which the reserve requirement shall be three percent. F%12 starting the reserve week 31 May 2019. )oo( tlw 2/ Effective reserve week 1 November 2019 Section 3. This Circular shall take effect on 1 November 2019 after its publication either in the official Gazette or in a newspaper of general circutation. FOR THE MONETARY BOARD: c 1q' BENJAMI]I E. DIOKNO Governor lL oaoa"r 2019 ' Page2ol2