Reduction in Reserve Requirements

BANGKO SeNrneL NG PITIeINAS OFFICE OF THE GOVERNOR ctRcurAR No.105t5 Series of 2019 Subject: Reduction in Reserve Requirements In its Resolution Nos. 1495 dated 27 September 2019 and 1525 dated 3 October 2OL9, the Monetary Board approved the reduction in the reserve requirement ratios of deposit and deposit substitute liabilities of banks. Section 1. Section 25Lof the Manual of Regulationsfor Banks (MORB) on 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 ogainst deposit and deposit substitute liabilities. The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks effective reserve week 1 November 2079 shall be as follows: Reservable Liabilities UBs/KBs TBs RBs/ Coop Banks a. Demand Deposits L5% 5% 3% b. NOW accounts L5% 5% 3% c. Savings Deposits (excluding basic deposit accounts) $% 5% 3% d. Time Deposits, Negotiable CTDS, Long-term Non- L5% 5% 3% negotiable Tax Exempt CTDs e. Long-term negotiable certificates of time deposits 4% 4% 4% f. Deposit Substitutes (DS) t5% 5% NA xxx XXX xxx xxx k. Peso deposits lodged under Due to foreien banks 15% NA NA l. Peso deposits lodged under Due to Head Office/Branches/Agencies Abroad (Philippine branch of a L5% NA NA foreign bank) m. Basic deposit accounts, as defined in Sec.X222 o% o% 0% !?rw. irti].I.}v.;-ri} i:):;ljI :il :ii4r bii:.ll{!!i..ii

Section 2. This Circular shall take effect on 1 November 2019 after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: HIG. FONACIER icer-ln-Charge 2{ October 2Ot9