BSP Circular No. 231-00

March 21, 2000 BSP CIRCULAR NO. 231-00 Pursuant to Resolution No. 1740 dated 3 December 1999, the Monetary Board decided, among others: (1) To subject to reserve requirements similar to deposit liabilities/deposit substitutes the peso deposits, except that utilized as capital, of foreign banks (including Head Office/Branches/Agencies abroad of local branches of foreign banks) booked under the "Due to Foreign Banks" and "Due To Head Office/Branches/Agencies" accounts; and (2) To amend the existing Consolidated Statement of Condition for purposes of reflecting the composition of the "Due From/To Head Office/Branches/Agencies" account; determining the capital component of the "Due To Head Office" account; and determining the component of the "Due To Head Office" account subject to reserve requirement. cdlex To comply with the above-cited policy issuances and to align with Circular No. 108 dated 9 May 1996, as amended by Circular No. 201 dated 1 May 1999, expanded and non-expanded commercial banks (EKBs and NEKBs) are, therefore, required to: 1. Adopt immediately the revisions to the Manual of Accounts pertaining to the definitions of the following accounts: "Due From/To Head Office/Branches/Agencies" and "Undivided Profits" (Annex "A"); 2. Adopt the following revised existing report formats, the submission of which is via cc:Mail to DCB I/II and to SRSO: Initial Reporting Transmission No. Report Title Annex Period Date 1 Consolidated Daily Report of Week from Condition (Main Report) Annex "B" 24 to 30 Mar 2000 04 Apr 2000 2 Consolidated Statement Month ended of Condition (Schedule 17) Annex "C" 31-Mar-00 25 Apr 2000 3. Adopt the revisions to the general ledger templates (Annex "D') and the standard data structures (Annex "E") under the GL/SL Unified Reporting Scheme. For purposes of determining the peso deposits (lodged under "Due to Foreign Banks" and "Due to Head Office/Branches/Agencies" account) subject to reserve requirements, except that utilized as capital by Philippine branch of foreign banks, EKBs and NEKBs shall be guided by the computation shown in Annex "F". (SGD.) ALBERTO V. REYES Officer-in-Charge ANNEX A Revisions to the MANUAL OF ACCOUNTS for EXPANDED AND NON-EXPANDED COMMERCIAL BANKS MANUAL OF ACCOUNTS GL ACCT CODE ACCOUNT TITLE ASSET ACCOUNTS 1-3-60-04 b. Equity Investment in Non-Allied Undertakings (for EKBs) Equity Investment in Non-Allied Undertakings - Domestic (for EKBs) Equity Investment in Non-Allied Undertakings - Abroad (for EKBs) 2-8-60-00 c. Allowance for Probable Losses Equity Investments LexLib 1-4-02-00 18 DUE FROM HEAD OFFICE/BRANCHES/AGENCIES 1-4-02-02 a. Due from HO/Branches Agencies in the Philippines Due from HO/Branches Agencies in the Philippines - Local Banks Due from HO/Branches Agencies in the Philippines - Local Banks - Domestic Due from HO/Branches Agencies in the Philippines - Local Banks - Regular Due from HO/Branches Agencies in the Philippines - Local Banks - FCDU/EFCDU Due from HO/Branches Agencies in the Philippines - Foreign Banks Due from HO/Branches Agencies in the Philippines - Foreign Banks - Domestic Due from HO/Branches Agencies in the Philippines - Foreign Banks - Regular Due from HO/Branches Agencies in the Philippines - Foreign Banks - FCDU/EFCDU 1-4-02-06 b. Due from HO/Branches Agencies Abroad Due from HO/Branches Agencies Abroad - Local Banks cda Due from HO/Branches Agencies Abroad - Local Banks - Domestic Due from HO/Branches Agencies Abroad - Local Banks - Regular LibLex Due from HO/Branches Agencies Abroad - Local Banks - FCDU/EFCDU Due from HO/Branches Agencies Abroad - Foreign Banks Due from HO/Branches Agencies Abroad - Foreign Banks - Domestic Losses in Operations - Domestic Others - Domestic Due from HO/Branches Agencies Abroad - Foreign Banks - Regular Demand Deposits and Working Balances - Regular Investments/Loans/Placements - Regular Losses in Operations - Current Year - Regular Others - Regular Due from HO/Branches Agencies Abroad - Foreign Banks - FCDU/EFCDU Demand Deposits and Working Balances - FCDU/EFCDU Investments/Loans/Placements - FCDU/EFCDU Losses in Operations - Current Year - FCDU/EFCDU Others - FCDU/EFCDU 1-4-02-10 c. Due from HO/Branches Agencies Abroad - Local Banks - Assigned Capital - Local Banks 1-4-04-00 19 BANK PREMISES, FURNITURE, FIXTURES AND EQUIPMENT 1-4-04-02 a. Bank Premises - Land cdtai 1-4-04-04 b. Bank Premises - Building under Construction 1-4-04-06 c. Bank Premises - Buildings 2-9-04-06 d. Accumulated Depreciation - Bank Premises Buildings 1-4-04-08 e. Bank Premises - Appraisal Increment - Buildings 2-9-04-08 f. Accumulated Depreciation - Bank Premises - Appraisal Increment - Buildings LIABILITY ACCOUNTS 2-3-04-00 29 DUE TO LOCAL BANKS 2-3-04-02 a Due to Local Banks - Private 2-3-04-04 b. Due to Local Banks - Government 2-3-04-06 e. Due to Local Banks - Clearing Accounts Due to Local Banks - Local Clearing Due to Local Banks - FX Clearing 2-3-06-00 30 DUE TO FOREIGN BANKS (LOCAL CURRENCY) 2-3-08-00 31 DUE TO HEAD OFFICES/BRANCHES/AGENCIES 2-3-08-02 a. Due to Head Office/Branches/Agencies in the Philippines Due to Head Office/Branches/Agencies in the Philippines - Local Banks Due to Head Office/Branches/Agencies in the Philippines - Local Banks - Domestic Due to Head Office/Branches/Agencies in the Philippines - Local Banks - Regular Due to Head Office/Branches/Agencies in the Philippines - Local Banks - FCDU/EFCDU Due to Head Office/Branches/Agencies in the Philippines - Foreign Banks Due to Head Office/Branches/Agencies in the Philippines - Foreign Banks - Domestic Due to Head Office/Branches/Agencies in the Philippines - Foreign Banks - Regular Due to Head Office/Branches/Agencies in the Philippines - Foreign Banks - FCDU/EFCDU 2-3-08-06 b. Due to Head Office/Branches/Agencies Abroad Due to Head Office/Branches/Agencies Abroad - Local Banks Due to Head Office/Branches/Agencies Abroad - Local Banks - Domestic Due to Head Office/Branches/Agencies Abroad - Local Banks - Regular Due to Head Office/Branches/Agencies Abroad - Local Banks - FCDU/EFCDU Due to Head Office/Branches/Agencies Abroad - Foreign Banks Due to Head Office/Branches/Agencies Abroad - Foreign Banks - Domestic Peso Deposits - Domestic Unremitted Profits - Domestic Others - Domestic Due to Head Office/Branches/Agencies Abroad - Foreign Banks - Regular Demand Deposits and Working Balances - Regular Placement/Time Deposits/Borrowings - Regular Unremitted Profits - Current Year - Regular Others - Regular Due to Head Office/Branches/Agencies Abroad - Foreign Banks - FCDU/EFCDU Demand Deposits and Working Balances - FCDU/EFCDU Placements/Time Deposits/Borrowings - FCDU/EFCDU Unremitted Profits - Current Year - FCDU/EFCDU Others - FCDU/EFCDU 2-3-08-10 c. Due to Head Office/Branches/Agencies Abroad Assigned Capital 2-3-10-00 32 TREASURER'S/CASHIER'S/MANAGER'S AND GIFT CHECKS 2-3-12-00 33 PAYMENT ORDERS PAYABLE Payment Orders Payable - Domestic Payment Orders Payable - Foreign Regular Payment Orders Payable - FCDU/EFCDU 2-3-14-00 34 MARGIN DEPOSITS Margin Deposits - Domestic Letters of Credit Margin Deposits - Import Letters of Credit (Local Currency) Margin Deposits - Import Letters of Credit - Foreign Regular Margin Deposits - Customers' Liability on Bills/Drafts under Letters of Credit and/or Trust Receipts Margin Deposits - Foreign Margin Deposits - Others 2-3-16-00 35 CASH LETTERS OF CREDIT Cash Letters of Credit - Domestic Cash Letters of Credit - Foreign Regular 2-3-18-00 36 SPECIAL TIME DEPOSITS 2-3-20-00 37 ACCRUED INTEREST, TAXES AND OTHER EXPENSES PAYABLE 2-3-20-02 a. Accrued Interest Payable Accrued Interest Payable - Domestic Accrued Interest Payable - Foreign Regular Accrued Interest Payable - FCDU/EFCDU Equity Investments in Non-Allied Undertakings Abroad (for EKBs) This represents the cost of equity investments in non-allied undertakings abroad which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. c. Allowance for Probable Losses Equity Investments [2-8-06-00] This represents the amount set up against current operations to provide for losses such as decline in market or book value which may arise on equity investments. Under existing regulations, this account is also known as "valuation reserve". cdlex 18. DUE FROM HEAD OFFICE/BRANCHES/AGENCIES (DFHO/B/A) [1-4-02-00] The accounts "Due From Branches/Agencies" and "Due To Branches/Agencies" are general ledger Head Office control accounts. The counterpart of these accounts in the books of the Branches consist of general ledger control accounts "Due From Head Office" and "Due To Head Office". If the balance of the Head Office account with its Branch is a debit, the account is carried as a "Due From", an asset account in the books of the Head Office. Conversely, if the balance of the Head Office account with its Branch is a credit, the account is carried as a "Due To", a liability account in the books of the Head Office. The same rule applies to the balance of the Branches accounts ("Due From" or "Due To" Head Office) with the Head Office. These accounts are essentially clearing accounts through which Head office/Branches/Agencies and interbranches/agencies transactions are cleared. Inter-Head Office-Branch transactions originating from Head Office are debited or credited to the account of the Branch concerned. The same applies to direct transactions of the Branch with the Head Office. Inter-Branch/Agency transactions, on the other hand, shall be cleared thru Head Office. The latter responds to the advice of the Branch/Agency where the transactions originated by debiting or crediting, as the case may be, the account of the office to which the transaction pertains. Likewise, Branch transactions with the bank's local and foreign correspondents shall be coursed thru the Head Office account. Head Office and Branches' accounts aforementioned are reciprocal accounts which are eliminated upon consolidation. The transactions which pass through these accounts are: LexLib Investments of Head Office in its Branches/Agencies; Advances of Head Office to its Branches/Agencies; Check and cash remittances; Transfers of loan and other asset accounts; Responses to other debit/credit advices of Branches/Agencies; Other receipts/payments made for account of Branches/Agencies; Advances made by Branches/Agencies for the account of Head Office or vice versa; Remittances of Branches/Agencies to Head Office; and Other inter-head office-branch(es) transactions not specified above In the preparation of consolidated statements, the reciprocal accounts shall be eliminated and the resulting debit difference shall be reported under "Inter-Office Float Items (Debit Balance)" account or if a credit balance, shall be reported under "Inter-Office Float Items (Credit Balance)" account. Individual subsidiary ledger accounts for each Branch/Agency shall be maintained by the Head Office. Sub-control accounts shall be maintained for items which are unresponded and outstanding for sixty calendar days or more. Sub-control accounts shall also be maintained for the following: LexLib a. Due From Head Office/Branches/Agencies in the Philippines [14-02-02] Sub-control accounts shall be maintained for: DFHO/B/A in the Philippines Local Banks (for domestic EKBs/NEKBs) and DFHO/B/A in the Philippines Foreign Banks (for Philippine branches of foreign banks). cdll Due From Head Office/Branches/Agencies in the Philippines Local Banks Due From Head Office/Branches/Agencies in the Philippines Local Banks Domestic This account controls the clearing of items/transactions between the bank's Head Office and its local branches/agencies. cdlex Due From Head Office/Branches/Agencies in the Philippines Local Banks Regular 1 This account controls the clearing of items/transactions between the bank's Head Office and its local branches/agencies which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. Due From Head Office/Branches/Agencies in the Philippines Local Banks FCDU/EFCDU This account controls the clearing of items/transactions under the FCDU/EFCDU system between the bank's Head Office and its local branches/agencies which shall be recorded at their respective foreign currency amounts. Due from Head Office/Branches/Agencies in the Philippines Foreign Banks Due from Head Office/Branches/Agencies in the Philippines Foreign Banks Domestic This account controls the clearing of items/transactions between the local main office of the branches of foreign banks and its local branches/agencies in the Philippines. The local main office and branch accounts are reciprocal accounts which are eliminated upon consolidation. Due from Head Office/Branches/Agencies in the Philippines Foreign Banks Regular 1 This account controls the clearing of items/transactions between the local main office of the branches of foreign banks and its local branches/agencies in the Philippines which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. The local main office and branch accounts are reciprocal accounts which are eliminated upon consolidation. cdll Due from Head Office/Branches/Agencies in the Philippines Foreign Banks FCDU/EFCDU This account controls the clearing of items/transactions under the FCDU/EFCDU system between the local main office of the branches of foreign banks and its local branches/agencies in the Philippines which shall be recorded at their respective foreign currency amounts. The local main office and branch accounts are reciprocal accounts which are eliminated upon consolidation. LexLib b. Due From Head Office/Branches/Agencies Abroad [1-4-02-06] Sub-control accounts shall be maintained for: DFHO/B/A Abroad Local Banks (for domestic EKBs and NEKBs) and DFHO/B/A Abroad Foreign Banks (for Philippine branches of foreign banks). cdll Due From Head Office/Branches/Agencies Abroad Local Banks Due From Head Office/Branches/Agencies Abroad Local Banks Domestic This account controls the clearing of items/transactions in local currency between the bank's Head Office (i.e. ABC, MBTC, PNB, etc.) and its branches abroad. Due From Head Office/Branches/Agencies Abroad Local Banks Regular 1 This account controls the clearing of items/transactions between the bank's Head Office (i.e. ABC, MBTC, PNB, etc.) and its branches abroad which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. LexLib Due From Head Office/Branches/Agencies Abroad Local Banks FCDU/EFCDU This account controls the clearing of items/transactions under the FCDU/EFCDU system between the bank's Head Office (i.e. ABC, MBTC, PNB, etc.) and its branches abroad which shall be recorded at their respective foreign currency amounts. Due From Head Office/Branches/Agencies Abroad Foreign Banks Due from Head Office/Branches/Agencies Abroad Foreign Banks Domestic This account controls the clearing of items/transactions in local currency between the Philippine branches of foreign banks and its Head Office/Branches/Agencies abroad (i.e. BA, HSBC, Citibank, SCB, etc.). Sub-control accounts shall be maintained for the following: LibLex Due from Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Domestic This represents losses in operations of the Philippine branch of foreign banks. Sub-control accounts shall be maintained for: (a) Losses in Operations Prior Years' Domestic; and (b) Losses in Operations Current Year Domestic. Due from Head Office/Branches/Agencies Abroad Foreign Banks Others Domestic This represents receivables of Philippine branches of foreign banks from their Head Office/Branches/Agencies in local currency which cannot be appropriately classified under any of the "Due From Head Office/Branches/Agencies Abroad Foreign Bank Domestic" account. However, this account does not include peso lendings to non-residents (including head office/branches/agencies abroad of Philippine branches of foreign banks) that is prohibited under existing regulations. Sub-control accounts shall be maintained for each type/nature of transaction. llcd Due From Head Office/Branches/Agencies Abroad Foreign Banks Regular 1 This account controls the clearing of items/transactions between the Philippine branches of foreign banks and its Head Office/Branches/Agencies abroad (i.e. BA, HSBC, Citibank, SCB, etc.) which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. Sub-control accounts shall be maintained for the following: cdll Due From Head Office/Branches/Agencies Abroad Foreign Banks Demand Deposit and Working Balances Regular 1 This represents the foreign currency demand deposits and working balances maintained by Philippine branches of foreign banks with its Head Office/Branches/Agencies Abroad which shall be recorded at their respective foreign currency amount and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. cdlex Due From Head Office/Branches/Agencies Abroad Foreign Banks Investment/Loans/Placements Regular 1 This represents foreign currency loans and discounts/placements granted by Philippine branches of foreign banks to its Head Office/Branches/Agencies abroad allowed under existing rules and regulations which shall be recorded at their respective foreign currency amounts and their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. Due From Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Current Year Regular 1 This represents current year losses in operations of Philippine branches of foreign banks resulting from the reversal of the "Undivided Profits" to this account in case of losses or to the "Due To Head Office/Branches/Agencies Abroad Foreign Banks Unremitted Profits Current Year Regular" account, in case of profits in operations. The balance of this account shall be transferred to "Due From Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Prior Years' Domestic" account at the end of the fiscal/calendar year. Due From Head Office/Branches/Agencies Abroad Foreign Banks Others Regular 1 This represents foreign currency receivables of Philippine branches of foreign banks from its Head Office/Branches/Agencies abroad which can not be appropriately classified under any of the "Due From Head Office/Branches/Agencies Abroad Foreign Banks Regular" account that shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange on transaction dates. Sub control accounts shall be maintained for each type/nature of transaction. LexLib Due From Head Office/Branches/Agencies Abroad Foreign Banks FCDU/EFCDU This account controls the clearing of items/transactions under the FCDU/EFCDU system between the Philippine branches of foreign banks and its Head Office/Branches/Agencies abroad (i.e. BA, HSBC, Citibank, SCB, etc.) which shall be recorded at their respective foreign currency amounts. Sub control accounts shall be maintained for the following: cdll Due From Head Office/Branches/Agencies Abroad Foreign Banks Demand Deposits/Working Balances FCDU/EFCDU This represents foreign currency demand deposits and working balances maintained by Philippine branches of foreign banks under the FCDU/EFCDU system with its Head Office/Branches/Agencies Abroad which shall be recorded at their respective foreign currency amounts. Due From Head Office/Branches/Agencies Abroad Foreign Banks Investment/Loans/Placements FCDU/EFCDU This represents foreign currency loans and discounts/placements granted by Philippine branches of foreign banks under the FCDU/EFCDU system to its Head Office/Branches/Agencies abroad allowed under existing rules and regulations, which shall be recorded at their respective foreign currency amounts. Due From Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Current Year FCDU/EFCDU This represents current year losses in operations under the FCDU/EFCDU system of Philippine branches of foreign banks resulting from the reversal of the "Undivided Profits FCDU/EFCDU" to this account in case of losses or to the "Due To Head Office/Branches/Agencies Abroad Foreign Banks Unremitted Profits Current Year FCDU/EFCDU" account, in case of profits in operations. The balance of this account shall be transferred to "Due From Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Prior Years' Domestic" account at the end of the fiscal/calendar year. Due From Head Office/Branches/Agencies Abroad Foreign Banks Others FCDU/EFCDU This represents foreign currency receivables under the FCDU/EFCDU system of Philippine branches of foreign banks from its Head Office/Branches/Agencies abroad which can not be appropriately classified under any of the "Due From Head Office/Branches/Agencies Abroad Foreign Banks FCDU/EFCDU" account that shall be recorded at their respective foreign currency amounts. Sub-control accounts shall be maintained for each type/nature of transaction. c. Due From Head Office/Branches/Agencies Abroad Assigned Capital Local Banks [1-4-02-10] This represents the portion of "Due From Branches/Agencies" abroad assigned permanently as capital of overseas branches of Philippine banks. 19. BANK PREMISES, FURNITURES FIXTURES AND EQUIPMENT [1-4-04-00] a. Bank Premises Land [1-4-04-02] This represents the acquisition cost of the land or lots by the bank as existing or future sites of its offices, including residential and parking lots used by the bank's officers/employees and clients. Acquisition cost shall consist of the purchase price and all expenditures incurred incident to acquisition, such as cost of surveying, registration and issuance of title. This account shall also include cost of filling and other expenditures which enhance the value of the land. b. Bank Premises Building under Construction [1-4-04-04] This represents the total cost of materials, labor and other capitalizable expenditures incurred in connection with the building(s) under construction. Upon completion of the building, its cost shall be transferred/closed to "Bank Premises-Buildings" account. cdll c. Bank Premises Buildings [14-04-06] This represents the cost of buildings owned and used or to be used by the bank for its business, including residential houses provided for its officers and employees. The buildings/residential house shall be recorded at acquisition or construction/improvement costs, including architect's fees, building permits, inspection fees, cost of vaults, elevators, tellers' cages and other capitalizable expenditures incurred in making the premises ready for use. prcd d. Accumulated Depreciation Bank Premises Buildings [2-9-04-06] This represents the accumulated depreciation of buildings owned by the bank, which shall be set up monthly against current operations. This is also known as "Reserve for Depreciation". prcd e. Bank Premises Appraisal Increment Buildings [1-4-04-08] This represents appreciation in book value of bank premises (land and buildings), allowed under existing rules and regulations, in cases where the market value of the n Accounts Receivable-Margin Deposits on Financial Futures FCDU/EFCDU This represents the initial margin paid by the bank at the inception of the contract. At liquidation, this deposit is refundable. This shall be recorded at its foreign currency amount. LibLex Accounts Receivable Others [1-4-34-04] Accounts Receivables Others This represents the following: 1) Amounts due from customers and other parties under open-account arrangements including miscellaneous advances made, such as cable expenses, out-of-pocket collection charges, documentary stamps, commissions and insurance premiums. cdll 2) Claims such as tax refund and insurance proceeds 3) Staff salary advances payable in thirty (30) days or less (those payable in more than 30 days shall be considered as loans) 4) Advances for official travel of officers/employees 5)Temporary overdrafts allowed under existing rules and regulations 6)Other local currency receivables that cannot appropriately be classified under any of the above. Accounts Receivable Others FCDU/EFCDU This represents amounts due from customers and other parties under open-account arrangements including miscellaneous advances made, such as cable expenses, out-of-pocket collection charges, documentary stamps, commissions and insurance premiums and other receivables in connection with transactions of FCDUs/EFCDUs under existing regulations which shall be recorded at their respective foreign currency amounts. cdll n. Allowance for Probable Losses Accounts Receivable Others [2-9-34-04] This represents the amount set up against current operations to provide for losses which may arise from non-collection of accounts receivable. Under existing rules and regulations, this account is also known as "valuation reserve". Sub-control accounts shall be maintained for: (a) Accounts Receivable Others; and (b) Accounts Receivable Others FCDU/EFCDU. cdll o. Accrued Interest Receivable [1-4-36-00 Accrued Interest Receivable Domestic This represents interest income already earned but not yet collected/received on investments in government securities and on loans considered under existing rules and regulations. Accrued Interest Receivable Foreign Regular 1 This represents interest income already earned but not yet collected received on investments in foreign securities and on foreign loans considered under existing rules and regulations. This shall be recorded in foreign currency amounts and at their local currency equivalent at the applicable rate of exchange on accrual dates. cdlex Accrued Interest Receivable FCDU/EFCDU This represents interest income already earned not yet collected/received on loans, investments and deposits of FCDUs/EFCDUs under existing regulations which shall be recorded at their respective foreign currency amounts. LibLex p. Allowance for Uncollected Interest on Loans [2-9-36-00] This represents the amount required to be set up for uncollected interest accrued on current loans which have become past due under existing rules and regulations. c. Due to Local Banks Clearing Accounts [2-3-04-06] Due to Local Banks Local Clearing This represents credit balances of local banks (i.e. Phil. National Bank) or any of its branches for clearing checks drawn on banks located in places not serviced by BSP clearing offices. cdll Due to Local Banks FX Clearing This represents credit balances of participating banks maintained with the franchise holder of Philippine Domestic Dollar Transfer Service System (PDDTS) for clearing of foreign currency denominated checks which shall be recorded at their foreign currency amounts. 30. DUE TO FOREIGN BANKS (LOCAL CURRENCY) [2-3-06-00] This represents credit balances of foreign correspondent banks maintained as working funds in local currency with the local bank funded by inward remittances subject to drawing through payment of order of the former. cdll 31. DUE TO HEAD OFFICE/BRANCHES/AGENCIES (DTHO/B/A) [2-3-08-00] The following sub-control accounts shall be maintained: llcd a. Due To Head Office/Branches/Agencies in the Philippines [2-3-08-02] Sub-control accounts shall be maintained for: DTHO/B/A in the Philippines Local Banks (for domestic EKBs/NEKBs) and DTHO/B/A in the Philippines Foreign Banks (for Philippine branches of foreign banks). Due To Head Office/Branches/Agencies in the Philippines Local Banks Due To Head Office/Branches/Agencies in the Philippines Local Banks Domestic This account controls the clearing of items/transactions between the bank's Head Office and its local branches/agencies. This is the reciprocal account of "Due From Head Office/Branches/Agencies in the Philippines Local Banks Domestic" which are eliminated upon consolidation. Due To Head Office/Branches/Agencies in the Philippines Local Banks Regular 1 This account controls the clearing of items/transactions between the bank's Head Office and its local branches/agencies which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange on transaction dates. This is the reciprocal account of "Due From Head Office/Branches/Agencies in the Philippines Local Banks Regular" which are eliminated upon consolidation. llcd Due To Head Office/Branches/Agencies in the Philippines Local Banks FCDU/EFCDU . This account controls the clearing of items/transactions under the FCDU/EFCDU system between the bank's Head Office and its local branches/agencies which shall be recorded at their respective foreign currency amounts. This is the reciprocal account of "Due From Head Office/Branches/Agencies in the Philippines Local Banks FCDU/EFCDU" which are eliminated upon consolidation. llcd Due To Head Office/Branches/Agencies in the Philippines Foreign Banks Due To Head Office/Branches/Agencies in the Philippines Foreign Banks Domestic This account controls the clearing of items/transactions between the local main office of the branches of foreign banks and its local branches/agencies in the Philippines. This is the reciprocal account of "Due From Head Office/Branches/Agencies in the Philippines Foreign Banks Domestic" which are eliminated upon consolidation. Due To Head Office/Branches/Agencies in the Philippines Foreign Banks Regular 1 This account controls the clearing of items/transactions between the local main office of the branches of foreign banks and its local branches/agencies in the Philippines which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange on transaction dates. This is the reciprocal account of "Due From Head Office/Branches/Agencies in the Philippines Foreign Banks Regular" which are eliminated upon consolidation. Due To Head Office/Branches/Agencies in the Philippines Foreign Banks FCDU/EFCDU . This account controls the clearing of items/transactions under the FCDU/EFCDU system between the local main office of the branches of foreign banks and its local branches/agencies in the Philippines which shall be recorded at their respective foreign currency amounts. This is the reciprocal account of "Due From Head Office/Branches/Agencies in the Philippines Foreign Banks FCDU/EFCDU" which are eliminated upon consolidation. b. Due To Head Office/Branches/Agencies Abroad [2-3-08-06] Sub control accounts shall be maintained for DTHO/B/A Abroad Local Banks (for domestic EKBs/NEKBs) and DTHO/B/A Abroad Foreign Banks (for Philippine branches of foreign banks). llcd Due To Head Office/Branches/Agencies Abroad Local Banks Due To Head Office/Branches/Agencies Abroad Local Banks Domestic This account controls the clearing of items/transactions in local currency between the bank's Head Office (i.e. ABC, MBTC, PNB, etc.) and its branches abroad. This is the reciprocal account of "Due From Head Office/Branches/Agencies Abroad Local Banks Domestic" which are eliminated upon consolidation. cdll Due To Head Office/Branches/Agencies Abroad Local Banks Regular 1 This account controls the clearing of items/transactions between the bank's Head Office (i.e. ABC, MBTC, PNB, etc.) and its branches abroad which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. This is the reciprocal account of "Due From Head Office/Branches/Agencies Abroad Local Banks Regular" which are eliminated upon consolidation. Due To Head Office/Branches/Agencies Abroad Local Banks FCDU/EFCDU This account controls the clearing of items/transactions under the FCDU/EFCDU system between the bank's Head Office (i.e. ABC, MBTC, PNB, etc.) and its branches abroad which shall be recorded at their respective foreign currency amounts. This is the reciprocal account of "Due From Head Office/Branches/Agencies Abroad Local Banks FCDU/EFCDU" which are eliminated upon consolidation. Due To Head Office/Branches/Agencies Abroad Foreign Banks Due To Head Office/Branches/Agencies Abroad Foreign Banks Domestic This account controls the clearing of items/transactions in local currency between Philippine branch of foreign banks and its Head Office/Branches/Agencies abroad (i.e. BA, HSBC, Citibank, SCB, etc.). This is the reciprocal account of "Due From Head Office/Branches/Agencies Abroad Foreign Banks Domestic". Sub-control accounts shall be maintained for the following: Due To Head Office/Branches/Agencies Abroad Foreign Banks Peso Deposits Domestic This represents peso deposits, placements and working balances maintained by Head Office/Branches/Agencies abroad of the Philippine branch of foreign banks that are funded by inward remittance of foreign exchange as provided under existing regulations. LexLib Due To Head Office/Branch/Agencies Abroad Foreign Banks Unremitted Profits Domestic This represents unremitted profits not yet approved by the Bangko Sentral ng Pilipinas for outward remittance. Sub-control accounts shall be maintained for: (a) Unremitted Profits Prior Years' Domestic; and (b) Unremitted Profits Current Year Domestic. Due To Head Office/Branches/Agencies Abroad Foreign Banks Others Domestic This represents payables by Philippine branch of foreign banks to its Head Office/Branches/Agencies abroad in local currency which can not be appropriately classified under any of the "Due to Head Office/Branches/Agencies Abroad Foreign Banks Domestic" accounts. Sub-control accounts shall be maintained for each type/nature of transaction. cdll Due To Head Office/Branches/Agencies Abroad Foreign Banks Regular 1 This accounts controls the clearing of foreign currency items/transactions between Philippine branch of foreign banks and its Head Office/Branches/Agencies abroad (i.e. BA, HSBC, Citibank, SCB, etc.) This is the reciprocal account of "Due From Head Office/Branches/Agencies Abroad Foreign Banks Regular". Sub control accounts shall be maintained for the following: Due To Head Office/Branches/Agencies Abroad Foreign Banks Demand/Deposits/Working Balances-Regular 1 This represents foreign currency demand deposits and working balances maintained by the Head Office/Branches/Agencies abroad with the Philippine branch of foreign bank including temporary overdrawings on working funds maintained by the Philippine branch of foreign banks which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. cdlex Due To Head Office/Branches/Agencies Abroad Foreign Banks Placements/Time Deposits/Borrowings Regular 1 This represents foreign currency placements/time deposits/loans maintained/granted by Head Office/Branches/Agencies abroad to Philippine branch of foreign banks which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. Due To Head Office/Branches/Agencies Abroad Foreign Banks Unremitted Profits Current Year Regular 1 This represents current year profits in operations of Philippine branches of foreign banks resulting from the reversal of "Undivided Profits" to this account in case of profits or to the "Due From Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Current Year Regular" account, in case of losses in operations which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. The balance of this account shall be transferred to "Due To Head Office/Branches/Agencies Abroad Foreign Banks Unremitted Profits Prior Years' Domestic" account at the end of the fiscal/calendar year. cdll Due To Head Office/Branches/Agencies Abroad Foreign Banks Others Regular 1 This represents foreign currency payables of Philippine branches of foreign banks to its Head Office/Branches/Agencies abroad that can not be appropriately classified under any of the "Due To Head Office/Branches/Agencies Abroad Foreign Banks Regular" account which shall be recorded at their respective foreign currency amounts and at their local currency equivalent at the applicable rate of exchange on transaction dates. Sub-control accounts shall be maintained for each type/nature of transaction. Due To Head Office/Branches/Agencies Abroad Foreign Banks FCDU/EFCDU This account controls the clearing of items/transactions under the FCDU/EFCDU system between the Philippine branch of foreign banks and its Head Office/Branches/Agencies abroad (i.e. BA, HSBC, Citibank, SCB, etc.) which shall be recorded at their respective foreign currency amounts. This is the reciprocal account of "Due From Head Office/Branches/Agencies Foreign Banks FCDU/EFCDU. Sub-control accounts shall be maintained for the following: LexLib Due To Head Office/Branches/Agencies Abroad Foreign Banks Demand Deposits/Working Balances FCDU/EFCDU This represents foreign currency demand deposits and working balances maintained by Head Office/Branches/Agencies abroad with Philippine branch of foreign banks including temporary overdrawings on working funds maintained by the Philippine branch of foreign banks under the FCDU/EFCDU system which shall be recorded at their respective foreign currency amounts. Due To Head Office/Branches/Agencies Abroad Foreign Banks Placements/Time Deposits/Borrowings FCDU/EFCDU This represents foreign currency placements/time deposits/loans maintained/granted by Head Office/Branches/Agencies abroad to Philippine branch of foreign banks under the FCDU/EFCDU system which shall be recorded at their respective foreign currency amounts. cdll Due To Head Office/Branches/Agencies Abroad Foreign Banks Unremitted Profits Current Year FCDU/EFCDU This represents current year profits in operations under the FCDU/EFCDU system of Philippine branch of foreign banks resulting from the reversal of "Undivided Profits FCDU/EFCDU" to this account, in case of profits or to the "Due From Head Office/Branches/Agencies Abroad Foreign Banks Losses in Operations Current Year" account, in case of losses in operations which shall be recorded at their respective foreign currency amounts. The balance of this account shall be transferred to "Due To Head Office/Branches/Agencies Abroad Foreign Banks Unremitted Profits Prior Years' Domestic" account at the end of the fiscal/calendar year. Due To Head Office/Branches/Agencies Abroad Foreign Banks Others FCDU/EFCDU This represents foreign currency payables of Philippine branches of foreign banks under the FCDU/EFCDU system from its Head Office/Branches/Agencies abroad that can not be appropriately classified under any of the "Due From Head Office/Branches/Agencies Abroad Foreign Banks" account which shall be recorded at their respective foreign currency amounts. Sub-control accounts shall be maintained for each type/nature of transaction. c. Due To Head Office/Branches/Agencies Abroad Assigned Capital [2-3-08-10] This represents portion of "Due To Head Office" account of Philippine branches of foreign banks assigned permanently as capital pursuant to counterpart concessional loans under existing regulations, which shall be recorded at their respective foreign currency amounts and their local currency equivalent on transaction dates. prcd 32. TREASURER'S/CASHIER'S/MANAGER'S AND GIFT CHECKS [2-3-10-00] This represents the aggregate amount of checks drawn by the bank upon itself payable to the payees named in the check. 33. PAYMENT ORDERS PAYABLE [2-3-12-00] Payment Orders Payable Domestic This represents inward and outward remittances of local funds by telegraphic transfers, demand drafts or mail transfer orders received by the bank pending payment/disposition to designated beneficiaries or application/disposition to appropriate accounts. LibLex Payment Orders Payable Foreign Regular 1 This represents inward and outward remittances of foreign funds by telegraphic transfers, demand drafts or mail transfer orders received by the bank pending payment/disposition to designated beneficiaries or application/disposition to appropriate accounts which shall be recorded at their foreign currency amounts and at their local currency equivalent at the applicable rate of exchange prevailing on transaction dates. LexLib Payment Orders Payable FCDU/EFCDU This represents inward and outward remittances of foreign funds by telegraphic transfers, demand drafts or mail transfer orders received by the bank pending payment/disposition to designated beneficiaries or application/disposition to appropriate accounts which shall be recorded at its foreign currency amounts. 34. MARGIN DEPOSITS [2-3-14-00] Margin Deposits Domestic Letters of Credit This represents non-interest bearing deposits required on commercial letters of credit issued in favor of local beneficiaries arising from domestic movement of goods or services. LibLex Margin Deposits Import Letters of Credit (Local Currency) This represents non-interest bearing peso deposits required of importers under existing rules and regulations in connection with the opening of import letters of credit. Margin Deposits Import Letters of Credit Foreign Regular 1 This represents non-interest bearing foreign currency deposits required of importers under existing rules and regulations in connection with the opening of import letters of credit, which shall be recorded at their foreign currency amounts and at their local currency equivalent at the applicable rate of exchange on transaction dates. Margin Deposits Customers' Liability on Bills/Drafts under Letters of Credit and/or Trust Receipts This represents margin deposits corresponding to negotiations on letters of credit evidenced by import bills and/or trust receipts. Margin Deposits Foreign This represents margin deposits with foreign branches/agencies of the reporting bank which shall be recorded at their foreign currency amounts. Margin Deposits Others This represents margin deposits which cannot be appropriately classified under any of the foregoing "Margin Deposit" accounts. 45. SURPLUS RESERVES [3-2-04-00] a. Reserve for Trust Business [2-3-04-02] This represents the accumulated amount set aside under Section 66 of R.A. No. 337, amended, requiring the bank to carry to surplus ten per cent (10%) of its net profits accruing from trust business since the last preceding dividend declaration until the surplus shall amount to twenty per cent (20%) of its authorized capital stock. cdlex b. Reserve for Self-Insurance [2-3-04-04] This represents the accumulated amount set aside to cover losses due to fire, defalcation by and other unlawful acts of the bank's officers/employees and/or third parties. c. Reserve for Contingencies [2-3-04-06] This represents the accumulated amount set aside for possible or unforeseen losses, decrease or shrinkage in the book value of the bank's assets, or for undeterminable liabilities not otherwise recorded, such as those arising from lawsuits, defaults on obligations and unexpected expenditures. d. Other Surplus Reserves [2-3-04-08] This represents the accumulated amount set aside for purposes other than those stated in the aforementioned "Surplus Reserves" accounts. 46. UNDIVIDED PROFITS [3-3-02-00] Undivided Profits This represents the clearing account for all income and expenses, the balance of which shall be transferred to "Surplus Free" account at the end of the accounting period after taking up all other charges and/or credits that may be appropriately cleared through this account. For Philippine branches of foreign banks, the balance of this account shall be transferred to "Due To Head Office/Branches/Agencies Abroad Foreign Banks" account (if credit balance) or to "Due From Head Office/Branches/Agencies Abroad Foreign Banks" account (if debit balance). Undivided Profits FCDU/FFCDU This represents the clearing account for all income and expenses involving transactions under the FCDU/EFCDU system, the balance of which shall be transferred to "Surplus Free" account at the end of the accounting period after taking up all other charges and/or credits that may be appropriately cleared through this account. For Philippine branches of foreign banks, the balance of this account shall be transferred to "Due To Head Office/Branches/Agencies Abroad Foreign Banks FCDU/EFCDU" account (if credit balance) or to "Due From Head Office/Branches/Agencies Abroad Foreign Banks FCDU/EFCDU" account (if debit balance). ANNEX B REVISED CONSOLIDATED DAILY REPORT OF CONDITION ANNEX C Revisions to the CONSOLIDATED STATEMENT OF CONDITION ANNEX D Revisions to the GENERAL LEDGER TEMPLATES for EXPANDED AND NON-EXPANDED COMMERCIAL BANKS ANNEX E Revisions to the DATA STRUCTURE for EXPANDED AND NON-EXPANDED COMMERCIAL BANKS ANNEX F COMPUTATION OF PESO DEPOSITS subject to RESERVE REQUIREMENTS Footnotes 1. Refer to Guidelines on Revaluation in Appendix A. n Note from the Publisher: Copied verbatim from the official document.