Deposit of Rural Bank Securities with a Philippine National Bank Branch or Agency as Reserves Against Deposit Liabilities
CBP Memorandum Circular to All Rural Banks No. 10-63 • Bangko Sentral ng Pilipinas • Memorandum Circulars • Jun 25, 1963
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June 25, 1963 CBP MEMORANDUM CIRCULAR TO ALL RURAL BANKS NO. 10-63 SUBJECT : Deposit of Rural Bank Securities with a Philippine National Bank Branch or Agency as Reserves Against Deposit Liabilities Effective July 1, 1963, Rural Banks may deposit their securities as reserves against deposit liabilities with the nearest PNB branch or agency (excluding Metropolitan Branches). This arrangement will facilitate the encashment of the bonds to meet immediate needs for cash caused by heavy withdrawals. For this purpose, the Rural Bank should furnish the PNB branch or agency a copy of the Board Resolution designating the Rural Bank Official who will be authorized to withdraw or deposit the bank's securities. cdll To facilitate handling, deposits of securities shall only be made in round figures in multiples of hundreds. Whenever securities are deposited or withdrawn, the PNB branch or agency shall immediately report to the Central Bank by wire the amount of the securities deposited or withdrawn. The Rural Bank shall forward to the Central Bank a copy of the Deposit or Release Receipt immediately. The Rural Bank can withdraw these securities from the PNB branch or agency without the necessity of prior approval from the Central Bank. However, the Rural Bank must see to it that the withdrawal does not impair the legal reserve requirements. The privilege of depositing securities with a PNB branch or agency may be withdrawn from a Rural Bank if it is found violating the preceding requirement. The accounting entries for the deposit and withdrawal of securities shall be as follows: 1. Transfer of securities from the Central Bank to a PNB branch or agency. Dr. Bond Investments held in trust by PNB P . . . Cr. Investment in Bonds P . . . 2. Encashment of Securities. Dr. Cash or Due from Banks P . . . Cr. Bond Investments held in trust by PNB P . . . Cr. Interest Income (if any) P . . . Please be guided accordingly. (SGD.) CEFERINO E. EUGENIO Director
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