August 3, 2011

BSP CIRCULAR NO. 732-11

 

The Monetary Board, in its Resolution No. 1117 dated 28 July 2011, approved the increase in the statutory/legal reserve requirements for peso deposit liabilities and deposit substitutes of universal/commercial banks, thrift banks, rural banks, cooperative banks, and non-bank financial institutions (NBFIs) with quasi-banking functions, as follows:

 

Bank/Financial	Accounts	Statutory/Legal	Liquidity
Institution			Reserves	Reserves
			From	To
Universal/Commercial	-	Demand	9%	10%	11%
Banks	-	"NOW"
	-	Savings
	-	Time
	-	Deposit substitutes
		(DS)
	-	DS evidenced by	3%	4%	0%
		repo agreements 1/
	-	Long-term
		Negotiable
		Certificate of
		Time Deposits
		(LTNCTDs)
Thrift Banks	-	Demand	5%	6%	2%
	-	"NOW"
	-	Savings
	-	Time
	-	Deposit substitutes
	-	DS evidenced by	3%	4%	0%
		repo agreements 1/
	-	LTNCTDs
Rural Banks/	-	Demand	5%	6%	0%
Cooperative Banks	-	"NOW"
	-	Savings	2%	3%
	-	Time
	-	LTNCTDs	3%	4%
NBFIs with quasi-	-	Deposit substitutes	9%	10%	11%
banking functions	-	DS evidenced by	3%	4%	0%
		repo agreements 1/

1/ Refer to deposit substitutes evidenced by repo agreements covering government securities up to the amount equivalent to the adjusted Tier 1 capital of the bank/quasi-bank and which comply with the conditions provided under Subsection X253.1/4253Q of the Manual of Regulations for Banks/Manual of Regulations for Non-Bank Financial Institutions

These new reserve requirement ratios shall take effect on the reserve week beginning on 5 August 2011.

FOR THE MONETARY BOARD:

(SGD.) AMANDO M. TETANGCO, JR.GovernorBangko Sentral ng Pilipinas