CBP Memorandum Circular

September 25, 1972 CBP MEMORANDUM CIRCULAR TO : All Rural Banks Attached is a "Memorandum to All Banks, Including Savings and Loan Associations" dated September 24, 1972 which is self-explanatory. For purposes of clarification, the attached memorandum includes rural banks and therefore, all the guidelines therein equally apply to said banks. (SGD.) AMADO R. BRIAS Deputy Governor BANGKO SENTRAL NG PILIPINAS (CENTRAL BANK OF THE PHILIPPINES) MANILA MEMORANDUM TO ALL BANKS, INCLUDING SAVINGS AND LOAN ASSOCIATIONS In line with the request made by the representatives of the Bankers Association of the Philippines and the Savings Bankers Association of the Philippines, please be advised that the Monetary Board has extended authority for the grant of emergency assistance and loans to banks, including savings and loan associations, which on account of their low cash position, may need funds to meet deposit withdrawals in accordance with the following guidelines: 1) The Central Bank will immediately purchase all Central Bank-supported bonds or securities tendered by banks. Such bonds or securities purchased by the Central Bank may be repurchased by the banks concerned within such period of time as may be announced by the Central Bank. 2) Central Bank Certificates of Indebtedness and non-supported government bonds or obligations may be sold to the Central Bank under a repurchase agreement, by virtue of which the bank concerned is obligated to repurchase the bonds or securities within seven (7) days from call of the Central Bank. 3) The Central Bank will grant loans to banks in amounts not exceeding the networth of the bank concerned to be secured by unmatured loan paper in the case of commercial banks, and paper secured by real estate mortgages in the case of savings banks. Such loans shall be granted for a period of 120 days, renewable at the discretion of the Monetary Board, with interest at the rate of 10% per annum. (SGD.) AMADO R. BRIAS Deputy Governor LIST OF SUPPORTED SECURITIES 1. PWED Bonds 4% 5th 6th S; 8th 14th S; 16th S; 18th 20th S; 24th 26th S; 30th 31st S; 40th 56th S; 37th S; 58th 59th S; 61st 62nd S; 64th 70th S; 72nd S; 74th 75th S; 78th 81st S; 84th 85th S; 90th S; 92nd 94th S; 96th S; 98th S; 100th 106th S; 108th S; 113th 114th S; 116th 117th S; 119th 120th S; 122nd S; 124th 130th S; 132nd S; 134th S; 136th 138th S; 142nd 148th S; 151st 173rd S; 178th S; 181st 184th S; 186th S; 189th S; 195th 197th S; 200th 204th S; 207th S. 2. NPC Bonds 4% 1st 38th S; 40th 50th S. 5 % 1st S. 3. NAWASA Bonds 4% 1st 10th S; 13th 14th S. 5 % 1st S. 4. NIA Bonds 4% 1st S. 5. Treasury Notes 2% 8th S; 13th S; 22nd S. LIST OF NON-SUPPORTED SECURITIES 1. PWED Bonds 4 % 205th S. 6% 174th 177th S; 179th 180th S; 185th S; 187th 188th S; 191st S; 194th S; 198th S; 206th S. 7% 208th 222nd S. 2. NPC Bonds 6% 39th S. 7% 51st 60th S. 3. NAWASA Bonds 6% 11th 12th S; 1st S. 7% 17th 32nd S. 7 % 15th 16th S. 4. NIA Bonds 7% 2nd S; 4th 13th S. 8% 3rd S. 5. Treasury Notes 2% 2nd S; 4th S; 7th S; 9th S; 11th 15th S; 17th 19th S; 21st S; 24th S; 26th 35th S. 3% 1st S. 3 % Special Series. 4% 36th S. 7% 25th S. 9% Special Series 10 % 1st 2nd S. 11 % 1st 5th S. Non-interest bearing Capital Treasury Notes. 6. Central Bank Certificates of Indebtedness, Series A, B & C 7. DBP Progress Bonds (80% of the face value)