The Monetary Board, in its Resolution No. 898 dated 7 July 2005, approved the following increase in the reserve requirements for Universal Banks (UBs) and Commercial Banks (KBs) and Non-Bank Financial Intermediaries with Quasi-Banking Functions and with Trust License by 1 percentage point for the statutory/legal reserves and another 1 percentage point for the liquidity reserves, as follows:

                                                                                                                                                                                                                                                                                                                                                 

A. Peso Demand, Savings and Time Deposit Liabilities and Deposits Substitutes
	Statutory/Legal Reserves		Liquidity Reserves
	From	To	From	To
Universal Banks	9%	10%	10%	11%
Commercial Banks	9%	10%	10%	11%
NBFIs with QB Function	9%	10%	10%	11%
B. Common Trust Funds and Other Similarly Managed Funds (CTF)
	Statutory/Legal Reserves		Liquidity Reserves
	From	To	From	To
Universal Banks	9%	10%	10%	11%
Commercial Banks	9%	10%	10%	11%
NBFIs with Trust License	9%	10%	10%	11%
C.Trust and Other Fiduciary Activities (TOFA-Others)
	Statutory/Legal Reserves		Liquidity Reserves
			From	To
Universal Banks	6%		10%	11%
Commercial Banks	6%		10%	11%
NBFIs with Trust License	6%		10%	11%
D. The required liquidity reserves may be maintained in the form of short-term market yielding government securities purchased directly from the Bangko Sentral ng Pilipinas - Treasury Department, pursuant to Circular 10 dated 29 December 1993.

The new reserve requirements shall be effective starting for reserve week 15 July 2005.

Adopted: 12 July 2005

(SGD.) AMANDO M. TETANGCO, JR.
Governor