Guidelines for the purposes of computing the bank's/NBQB's reserves against deposit substitutes/deposit liabilities, common trust funds and other similarly managed funds and trust and other fiduciary activities - others

MEMORANDUM Series of 2004

TO          :  All Banks and NBQBs

For purposes of computing the bank's/NBQB's reserves against deposit substitutes/deposit liabilities, common trust funds and other similarly managed funds (CTF) and trust and other fiduciary activities - others (TOFA-Others) for the reserve days 25 - 27 August 2004, the following guidelines are issued in line with the advisory made by BSP Treasury Department under Memorandum To All Banks and Non-Banks with Quasi-Banking Functions dated 25 August 2004, the Swift messages sent by BSP Comptrollership Department's Payment Unit to all commercial and thrift banks, dated 25 and 26 August 2004 and the PhilPaSS Advisory BPU2004-0420 and BPU2004-0421 dated 25 & 26 August 2004, respectively.  Subject ruling is consistent with the provisions enunciated under the PhilPaSS Memorandum of Agreement (MOA) dated 12 December 2002, Addendum No. 1, Sections 5.4.1 and 5.4.2 when the Executive Branch of the Government declares a non-working day for government agencies:

1.   25 August 2004 declared as a non-working half day for government employees is considered a reserve day.

2.   26 August 2004 is declared a non-reserve day; hence the reserve position as calculated at the end of business day of 25 August 2004 shall be carried forward the following day, i.e. 26 August 2004.

For further clarification as to the utilization of the bank's Cash in Vault (CIV) as available reserve for the purpose of determining compliance with the minimum reserve requirement as provided under Circular Letter dated 5 April 2002, the bank's CIV as of 26 August 2004 shall be used as reserve cover for 27 August 2004 reserve day.

For information and guidance.

ALBERTO V. REYES Deputy Governor