Accounting Alerts

Reduction in Reserve Requirements

This accounting alert provides a summary of Bangko Sentral ng Pilipinas (BSP) Circular No. 1082 for the reduction in the reserve requirement ratios of deposit and deposit substitutes.

The Governor of the BSP, upon authority of the Monetary Board in its Resolution No. 423 dated March 23, 2020, approved a reduction in the reserve requirement ratios of deposit and deposit substitute liabilities of universal and commercial banks and non-bank financial institutions with quasi-banking functions.

Section 251 of the Manual of Regulations for Banks on required reserves against the following deposit and deposit substitute liabilities in local currency of banks, is amended as follows:

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Further, non-banks with quasi-banking functions shall maintain required reserves equivalent to twelve percent (12%) of deposit substitute liabilities effective reserve week starting April 3, 2020. Before the effectivity of Circular 1082, the reserve requirement ratios for universal banks, commercial banks and non-bank financial institutions with quasi-banking functions were previously set at 14%.

This Circular shall take effect on April 3, 2020.

 

 

See attached Circular 1082 for the complete details of this publication.