Reiterating Department Order No. 27-05 Entitled "Amendment to Department Order No. 32-03"

January 12, 2015 BLGF MEMORANDUM CIRCULAR NO. 001-15 TO : BLGF Regional Directors of this Bureau, Provincial, City and Municipal Treasurers and Others Concerned SUBJECT : Reiterating Department Order No. 27-05 Entitled "Amendment to Department Order No. 32-03" For the information and guidance of all concerned, attached is a copy of the Department Order No. 27-05 dated December 09, 2005, issued by the Secretary Margarito B. Teves , Department of Finance (DOF), on the abovementioned subject. The content of said DO 27-05 is hereby reiterated for proper implementation. The BLGF Regional Directors are hereby instructed to take note of the above and disseminate the contents to all provincial, city and municipal treasures and to all others concerned. Please be guided accordingly. CIAcSa (SGD.) SALVADOR M. DEL CASTILLO OIC-Executive Director Bureau of Local Government Finance ATTACHMENT DOF Department Order No. 027-05 dated December 9, 2005 Bangko Sentral ng Pilipinas OFFICE OF THE ASSISTANT GOVERNOR CENTRALIZED SUPERVISORY SUPPORT SUB-SECTOR April 30, 2007 Mr. Omar Byron T. Mier President & Chief Executive Officer PNB Financial Center Pres. Diosdado Macapagal Blvd. 3108 Pasay City Dear Mr. Mier: Subject: Renewal of Authority to Accept Government Deposits This is to inform you that the Monetary Board, in its Resolution No. 493 dated 26 April 2007, approved the request of the Philippine National Bank (PNB) for renewal of its authority to accept Government deposits on a continuing basis reckoned from 26 April 2007, subject to the following conditions: 1. The amount of deposits shall not exceed the minimum working balances of the Government entity(ies); 2. PNB may accept deposits from the Government entity(ies) beyond their minimum working balances: Provided, that the total deposits shall not exceed the sum of such minimum working balances and outstanding loan obligations of aforementioned Government entity(ies) with PNB, if any; 3. The aggregate amount of Government funds to be held by PNB at any given time shall not exceed 200% of the bank's net worth; 4. The deposit shall be subject to the 50% liquidity floor required under Subsection X240.6 of the Manual of Regulations for Banks (MORB); and HIACac 5. The ratio of Government deposits to total deposit liabilities shall be reduced to 10% beginning year-ended 2007. The authority to accept Government deposits from the Government entity(ies) may be revoked or withdrawn if any of the following grounds shall be found to exist: a. Non-compliance with any of the five (5) conditions enumerated above; b. Non-compliance with the required minimum capital and/or the 10% risk-based capital adequacy ratio; c. PNB's CAMELS composite rating in its latest examination is lower than "3", or PNB management's component score is lower than "3"; d. PNB has been converted from a higher category; e. PNB has not fully booked the required valuation reserves; f. PNB has been chronically deficient in its regular and liquidity reserve requirements against deposits and deposit substitutes as well as in liquidity floor on Government deposits; g. The ceilings on loans to directors, officers, stockholders, and related interest (DOSRI) have been exceeded; h. The single borrower's loan limit has been exceeded; i. PNB's obligation with the Bangko Sentral ng Pilipinas or with any financial institution has become past due; j. PNB's float items outstanding for more than six (6) months have exceeded 1% of its total resources; k. PNB has engaged in unsafe and unsound practices; l. PNB has stopped being a member of the Philippine Deposit Insurance Corporation in good standing; and m. Such other grounds as the Monetary Board may, from time to time, deem appropriate to warrant the revocation, withdrawal or suspension of authority to accept Government deposits. 6. PNB is reminded that the continuing compliance with the above conditions of the approved authority to accept Government deposits shall be subject to review or evaluation off-site and during the general examination of the bank; and 7. The Government entity(ies) Intending to deposit with PNB shall secure necessary approval from the Department of Finance (DOF) in compliance with DOF Order No. 27-05 dated 9 December 2005. Very truly yours, (SGD.) MA. DOLORES B. YUVIENCO Assistant Governor