Amendments to the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions pertaining to Bangko Sentral’s Reverse Repurchase Operations

BANGKO SENTRAL NG PILIPINAS OFFICE OFTHE COVERNOR crRcuLAR NO.1U9 Series of 2023 Subject: Amendment to the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions pertaining to Bangko Sentral's Reverse Repurchase Operations The Monetary Board, in its Resolution No. ll28 dated 31 August 2023, approved the following amendments to the Manual of Regulations for Banks (MORB) and the Manual of Flegulations for Non-Bank Financial Institutions (MORNBFI) pertaining to the implementation of a fixed-volume variable-rate auction format for the reverse repurchase operations of the Bangko Sentral. section l. Section 6ol/6ol-Q of the MoRB/MoRNBFI on Monetary Operations as amended by Circular Nos.'ll3O dated 23 November 2o.21and ll57 dated 14 October 2022,is further amended to read, as follows: 60l/60l -Q Monetary Operations xxx Peverse repurchase agreements with the Bangko Sentral. Fleverse Repurchase Agreement (RRP) refers to the Bangko Sentral's monetary instrument where the Bangko Sentral sells government securities with a commitment to buy them back at a later date. RFIPs shall be open to banks (UBs/Xgs, digital banks and TBs) and QBs. These counterparties may enter into RRP transactions with the Bangko Sentral by participating in the FIRP auction operation and said transactions with the Bangko Sentral shall be subject to the following terms and conditions: a. Rate.The interest rate on the RRP facility shall be determined by auction, based on guidelines as prescribed by the Bangko Sentral. xxx Section 2. This Circular shall take effect on 8 September 2023. FOR THE MONETARY BOARD: ,{4 y'4rrM. REMoLoNA,JR. Governor 1 September2Ol3