[ BSP CIRCULAR NO. 632, S. OF 2008, November 19, 2008 ]
REDUCTION IN THE STATUTORY/LEGAL RESERVE REQUIREMENTS FOR PESO DEMAND, NOW , SAVINGS, TIME DEPOSIT LIABILITIES AND DEPOSIT SUBSTITUTES OF UNIVERSAL BANKS, COMMERCIAL BANKS, THRIFT BANKS, RURAL AND COOPERATIVE BANKS, AND QUASI-BANKS
The Monetary Board, in its Resolution No. 1448 dated 6 November 2008,
approved the reduction in the statutory/legal reserve requirements for
peso demand, NOW , savings, time deposit liabilities and deposit
substitutes of universal banks, commercial banks, thrift banks, rural
and cooperative banks, and quasi-banks, as follows:
| BANK/ACCOUNTS FINANCIAL INSTITUTION |
STATUTORY/LEGAL RESERVES |
LIQUIDITY RESERVES |
||
| From |
To |
|||
| Universal Banks/Commercial Banks |
- Demand - Savings - Time |
10% |
8% |
11% 0% |
| - Deposit Substitutes |
||||
| - NOW - Long-term Negotiable CTDs |
9% 2% |
8% 2% |
||
| Thrift Banks |
- Demand - NOW - Savings - Time |
6% |
4% |
2% |
| - Deposit Substitutes - Long-term Negotiable CTDs |
2% |
2% |
0% |
|
| Rural Banks Cooperative Banks |
- Demand |
6% |
4% |
0% |
| - NOW - Savings |
2% |
1% |
||
| - Time - Long-term Negotiable CTDs |
2% |
2% |
||
| Quasi Banks |
- Deposit Substitutes |
10% |
8% |
11% |
Required reserves for peso-denominated Common Trust Funds (CTFs) and such other similarly managed funds, as well as those for Trust and Other Fiduciary Accounts- Others ( TO FA-Others) shall remain at current levels.
These new reserve requirement ratios shall be effective starting with the reserve week beginning 14 November 2008.
Adopted: 19 Nov. 2008
FOR THE MONETARY BOARD:
(SGD.) AMANDO M. TETANGCO, JR.
Governor