BSP CIRCULAR LETTER, December 16, 1999
LIFTING OF RESERVE REQUIREMENT ON INTERBANK LOANS
National Administrative Register December 16, 1999
The Monetary Board, in its Resolution No. 1631 dated November 11,
1999, decided to lower the reserve requirement on interbank loans from
one percent to zero percent effective December 17, 1999, provided,
however, that for prudential reasons, only interbank borrowings
evidenced by the interbank loan advice or repayment transfer tickets and
settled through the respective demand deposits of banks or non-banks
with quasi-banking functions with the BSP should be eligible to the zero
level of reserve requirement.
1999, decided to lower the reserve requirement on interbank loans from
one percent to zero percent effective December 17, 1999, provided,
however, that for prudential reasons, only interbank borrowings
evidenced by the interbank loan advice or repayment transfer tickets and
settled through the respective demand deposits of banks or non-banks
with quasi-banking functions with the BSP should be eligible to the zero
level of reserve requirement.
Adopted: 16 December 1999
(SGD.) RAFAEL B. BUENAVENTURA
Governor