Increase in Statutory/Legal Reserve Requirements of Peso Deposit Liabilities and Deposit Substitutes

EIANGKo SENTRAL Ne PILIPINAS OFFICE OF THE GOVERNOR clRcutAR No. 732 Series of 2OLt Subject : Increase in Statutory lLegal Reserve Requirements of Peso Deposit Liabilities and Deposit Substitutes The Monetary Board, in its Resolution No. 1117 dated 28 July 2OL1, 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 (NBFls) with quasi-banking functions, as follows: BANK/FINANC|AL ACCOUNTS STATUTORY/LEGAL LlqulDmr INSTITUTION RESERVES RESERVES From To Universal/Commercial -Demand 9% IO% tt% Banks -"NOW" -Savings -Time -Deposit substitutes (DS) -DS evidenced by repo 3o/o 4o/o o% agreementsl/ -Long-term Negotiable Certificate of Time Deposits (LTNCI'Ds) Thrift Banks -Demand 5% 6% 2% -"NOW" -Savings -Time -Deposit substitutes -DS evidenced by repo 3% 4% o% agreementsl/ -LTNCTDS Rural -Demand 5o/o 6% 0% Banks/Cooperative -,NOW' Banks -Savings 2% 3% -Time -LTNCTDS 3% 4o/o NBFIs with quasi- -Deposit substitutes 9% 10% 1.1% banking functions -DS evidenced by repo 3o/o 4% o% agreementsl/ " 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 *,-tvxaititriSi.fiiatett:t{}t}4 fv1aaiia,?*i:lppi*t'';"1A32.152.4-7*1.1 "wut't,t.ls:;7t.gl:v.pit*hso;raily)jt;t.lltsv.trt:t

These new reserve requirement ratios shall take effect on the reserve week beginning on 5 August 2011. FOR THE MONETARY BOARD: 3 August 2011 Page2 of 2