Moratorium on the lssuance of Long-Term Negotiable Certificates of Time Deposit

Benexo SeNrnlL Ne PrlrprNns OFFICE OF THE GOVERNOR crRcurAR No.10s9 Series of 2019 Subject: Moratorium on the lssuance of Long-Term Negotiable Certificates of Time Deposit The Monetary Board, in its Resolution No. 1727 dated 7 November 2OL9, approved the amendments to Section 2L7 of the Manual of Regulations for Banks (MORB)to reflect the moratorium provision on long-term negotiable certificates of time deposit. Section 1. Section 2L7 of the MORB is hereby amended to read, as follows: Section 217 IONG-TERM CERTIFICATES OF TIME DEPOSIT Long-term negotiable certificotes of time deposit. xxx a. xxx XXX d. Listing of LTNCTD with an occredited exchonge. LTNCTDs duly approved by the Monetary Board shall be issued and immediately listed on an accredited exchange. xxx Banks which fail to list their LTNCTDs on an accredited exchange within the prescribed period shall be subject to the sanctions under ltem "p(7)" below. Morotorium on issuonce of LTNCTD. Beginning l January 202L, there shall be an indefinite moratorium on the issuance of LTNCTDs. LTNCTDs that have been approved but remain unissued as of 31 December 2020 may still be issued: Provided, That this is done within the period allowed by the Bangko Sentral: Provided, further, That requests for authority to issue LTNCTDs shall only be accepted by the appropriate supervising department of the Bangko Sentral until 30 September 2020. All LTNCTDs issued in accordance with this Section shall remain valid and negotiable until their maturity dates without prejudice to the right of the issuing bank to pre-terminate said LTNCTDs before their maturity dates subject to the conditions set forth under ltem "m" of Sec.217 of the MORB on the pre-termination bythe issuer. p. Sonctions, Without prejudice to the other sanctions prescribed under Sections 35 and 37 of R.A. No. 7653, as amended by R.A. No. 11211, and the provisions of Section 15 of R.A. No. 8791 xxx: '- I ,:' !:i.i.a

XXX Fls not supervised by the Bangko Sentral acting as selling agent of LTNCTDs and/or its directors/officers concerned that are found to violate rules and regulations in the performance of their functions/responsibilities shall be subject to the provisions of Section 35 of R.A. No. 7653, as amended by R.A. No. LLZIL, and shall, likewise, be referred to the SEC for appropriate action. Su pe rv i so ry e nforce m e nt o cti o ns. xxx Long-term non-negotioble tax-exempt certilicotes of time deposft Banks may issue long-term non-negotiable tax-exempt certificates of time deposit without approval of the Bangko Sentral. The issuance of long-term non-negotiable tax-exempt certificates of time deposit shall be governed by the following rules: xxx Section 2. Effectivity. This Circular shall take effect fifteen (15) calendar days after its publication either in the Official Gazette or in a newspaper of general circulation. FOR THE MONETARY BOARD: Xno--;n /ilJ-A ;RANCISCO G. DAKILA, JR. Officer-ln-Charge l( Nouerber 2019