QuestionsQuestions (PPA-PMO SOUTH HARBOR MEMORANDUM CIRCULAR NO. 05, S. 1996)
The policy objective is to promote healthy competition within the banking system and provide enhanced banking statistics necessary for informed decision-making.
The regional LDR is a measure of an individual bank's lending activity relative to deposits generated in a particular region, serving as an indicator of how much deposits have been transformed into investments within that region.
The regional LDR is computed by dividing the bank's aggregate loans by its aggregate deposit liabilities on a per region basis as of the same reporting cut-off date.
Loans should be reported in the region where the loan proceeds were utilized or channeled to, i.e., the location of the end-users.
Deposits should be reported in the region where these were generated by the bank.
Excluded loans are "Loans to BSP," "Interbank Loans Receivable," and loans granted by a bank's Foreign Currency Deposit Unit (FCDU) or Expanded FCDU (EFCDU).
Deposits from the Foreign Currency Deposit Unit (FCDU) and Expanded FCDU (EFCDU) are excluded from deposit liabilities.
The bank head office was required to submit a Report of Selected Branch Accounts on a semestral basis, considered a Category A-3 report, starting with the 31 December 2008 semestral report.
Banks were required to continue submitting these reports until the reporting period ending 31 December 2008, after which submission of SOC and SIE per branch was discontinued.
Compliance with the LDR requirement was excluded as a pre-condition for the grant of special banking authorities in Appendix 5 of the Manual of Regulations for Banks (MORB).
The Circular took effect fifteen (15) calendar days following its publication either in the Official Gazette or in a newspaper of general circulation.