Amendments to the Alternative Compliance with the Reserve Requirements of Banks and Non-Bank Financial Institutions with Quasi-Banking Functions (NBQBS)

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE GOVERNOR CIRCULAR NO. II55 Series of 2022 Subject: Amendments to the Alternative Compliance with the Reserve Requirements of Banks and Non-Bank Financial Institutions with Quasi-Banking Functions (NBQBS) The Monetary Board, in its Resolution No.'1378 dated l6 September 2022, approved the following amendments to the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial institutions (MORNBFI) on the allowable modes of alternative compliance with the reserve requirements. Section l. Section 252/212-Q of the MoRB/MORNBFI is hereby amended to read, as follows: 2521212-Q CO M POS|TIO N OF RESERVES xxx Allowoble modes of olternotive complionce. The following alternative modes of.compliance with the required reserves against deposit and deposit substitute liabilities shall be allowed: a. Peso-denominated loans that are granted to micro-, small-, and medium enterprises (MSMES), as defined under Sec.332 (Definition of Terms), excluding banks and NBQBs that meet the definition of a small- and medium-enterprise, subject to the following conditions: xxx The use of MSME loans as allowable alternative compliance with the reserve requirement shall be available to banks/NBQBs from 24 April2O2Oto30 June2023. b. Peso-denominated loans that are granted to large enterprises, excluding banks and NBQBs that meet the definition of a large enterprise, subject to the following conditions: xxx The use of loans to a [arge enterprise as allowable alternative compliance with the reserve requirements shall be available to banks/NBQBs from 29 May 2O2O to 30 June 2023. xxx Section 2. This Circular shall take effect fifteen (15) calendar days following its publication either in the Official cazette or in a newspaper of general circulation. FOR THE M9ffETARY BOARD: NGONAN harge lf September2022