Reduction in Reserve Requirements

. . 9 . BANGKO SENTRAL NG PILIPiNAS OFFICE OF THE GOVERNOR CIRCULAR No. 1201 Series of 2024 Subject: Reduction in Reserve Requirements The Monetary Board, in its Resolution No. 1027 dated 05 September 2024. approved the reduction in the reserve requirement ratios of deposit and deposit substitute liabilities of banks and non-bank financial institutions with quasi-banking functions (NBQBs). Section I. Section 251 of the Manual of Regulations for Banks on Required reserves against deposit and deposit substitute nabiliti^s. as amended by Circular Nos. 1154 dated 14 September 2022.1175 dated 233une 2023,1176 dated 29 June 2023 and 1185 dated 13 December 2023, is hereby further amended to read. as follows: 251 ACCOUNTS SUBJECT To RESERVES; AMOUNTS REQUIRED The following rules and regulations shall govern the reserves against deposit and deposit substitute liabilities. Required reserves against deposit and deposit substitute liabilities. The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks effective reserve week starting 25 October 2024 shall be as follows: Reservable Liabilities UBs/1< BS Digital TBs RBs/Coop Banks Banks a Demand De OSits 7% 4% I% o% b. Now Accounts 7% 4% I% O% c. Savings Deposits Iexcluding basic 7% 4% I% 096 de OSIt accounts) d. Time Deposits. Negotiable CTDs, Long-Term Non-Negotiable Tax 7% 4% I% O% Exem t CTDs e. xxx XXX XXX XXX XXX f. De OSit Substitutes (DS) 7% 4% I% NA XXX xXx XXX XXX XXX XXX h. xxx XXX XXX XXX XXx I. Peso deposits lodged under Due to 7% 4% NA NA forei n banks I- Peso deposits lodged under Due to Head Office/Branches/Agencies 7% 4% NA NA Abroad IPhilippine branch of a forei n bank) k. xxx XXX XXX XXX XXX xxx Pagel of 2

. Section 2. Section 211-Q of the Manual of Regulations for Non-Banl< Financial Institutions on Reserves against deposit substitutes, as amended by Circular No. 1175 dated 23 June 2023, is hereby amended to read, as fo!!ows 211-Q RESERVES AGAINST DEPOSIT SUBSTITUTES NBQBs shell maintain required reserves equivalent to seven percent (7%) of peso-denominated deposit substitute liabilities as defined in Section 95 of R. A. No. 7653. as amended by R. A. No. 11211, regardless of maturities except: a. xxx; b. >:, xx; and c. XXX effective reserve week starting 25 Octobei' 2024. Section 3. This Circular she!I take effect on 25 October 2024 after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD I A <.,.,, ELI M. REMOLONA, JR. Governor 20 september 2024