Amendment of Certain Provisions of the Manual of Regulations for Banks and Non-Bank Financial Institutions

February 7, 2014 BSP CIRCULAR NO. 825-14 SUBJECT : Amendment of Certain Provisions of the Manual of Regulations for Banks and Non-Bank Financial Institutions Pursuant to Monetary Board Resolution No. 2131 dated 19 December 2013, the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), respectively, are hereby amended to read as follows: SECTION 1. X151.6. Establishment of Other Banking Offices. . . . xxx xxx xxx 3. Undertaking signed by the president of the bank or officer of equivalent rank that said other banking office shall not accept deposits and/or service withdrawals thru tellers or other authorized personnel. OBOs may be established only in areas where the bank is allowed to establish branches as provided under Subsec. X151.4 on branching guidelines. xxx xxx xxx SECTION 2. Deletion of Sections 2205 (Check Clearing Rules for Thrift Banks Authorized to Accept Demand Deposit) and 3205 (Check Clearing Rules for Rural Banks who are Members of the Philippine Clearing House Corporation) of the MORB. EcASIC SECTION 3. 4254Q Composition of Reserves . xxx xxx xxx b. Transitory provisions . . . . xxx xxx xxx ii. Reserve deposit account (RDA) Deposit placements that are maintained by QBs in the RDA with the Bangko Sentral, which are used as compliance with the liquidity reserve requirement as of 06 April 2012, shall continue to be eligible as compliance with the reserve requirement until they mature. xxx xxx xxx SECTION 4. X361.5. Housing Microfinance Loan . . . . xxx xxx xxx (3) Appropriate risk management . . . . (a) Clients' ability to repay based on cash flow analysis and affordability, especially the new clients; (b) Opening of a savings account shall be required for clients with no existing savings account; (c) Secure tenure instruments . . . (d) Adequate loan monitoring . . . (e) Additional risk cover . . . (f) A lien or mortgage covering . . . (g) Mortgage redemption . . . (4) Regulatory treatment . . . . xxx xxx xxx SECTION 5. Effectivity . This Circular shall take effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation. EISCaD FOR THE MONETARY BOARD: (SGD.) AMANDO M. TETANGCO, JR. Governor