INCREASE IN STATUTORY/LEGAL RESERVE REQUIREMENTS OF PESO DEPOSIT LIABILITIES AND DEPOSIT SUBSTITUTES

The Monetary Board, in its Resolution No. 111 f 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 INSTITUTION	ACCOUNTS	STATUTORY/LEGAL RESERVES		LIQUIDITY RESERVES
		From	To
Universal/ Commercial Banks	– Demand – “NOW” – Savings – Time – Deposit substitutes (DS)	9%	10%	11%
	– DS evidenced by repo agreements” – Long-term Negotiable Certificate of Time Deposits (LTNCTDs)	3%	4%	0%
Thrift Banks	– Demand -“NOW” – Savings – Time – Deposit substitutes (DS)	5%	6%	2%
	– DS evidenced by repo agreements” -LTNCTDs 3% 4% 0%

BANK/FINANCIAL INSTITUTION	ACCOUNTS	STATUTORY/LEGAL RESERVES		LIQUIDITY RESERVES
		From	To
Rural Banks/ Cooperative Banks	– Demand -“NOW” 11%	5%	6%	0%
	– Savings  – Time	2 %	3%
	– LTNCTDs	3%	4%
NBFIs with quasi-banking function	– Deposit substitute	9%	10%	11%
	– DS evidenced by repo agreements	3%	4%	0%
“Refer to deposit substitutes evidence 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.

Adopted: 03 August 2011

FOR THE MONETARY BOARD:

(SGD.)AMANDOM.TETANGCO,JR.
Governor