Question & AnswerQ&A (BSP CIRCULAR NO. 689)
Interbank loan transactions include (a) interbank call loan (IBCL) transactions, (b) borrowings evidenced by deposit substitute instruments, and (c) purchases of receivables with recourse.
No, funds borrowed by banks from trust departments of banks or investment houses are excluded from the definition of interbank loan transactions.
Only IBCL transactions which are settled through the banks' respective Demand Deposit Accounts (DDAs) with the BSP via PhilPaSS are subject to the reserve requirement prescribed for IBCL in Subsection X253.1 of the MORB.
Lending banks shall record IBCL transactions as Interbank Call Loans Receivable, while borrowing banks shall record them as Bills Payable - Interbank Call Loans Payable.
Banks and QBs shall reconcile their demand deposit accounts with the BSP against monthly statements of account furnished by the BSP Financial Accounting Department, Comptrollership Sub-Sector.
QBs refer to Quasi-Banks as per the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), which are subject to provisions under this circular for interbank loans.
IBCL transactions settled through the QBs’ respective DDAs with the BSP via PhilPaSS are eligible for zero percent (0%) reserve requirement.
The circular took effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation.
The circular amends provisions in the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) regarding interbank loans.
Monetary Board Resolution No. 766 authorized the amendments to the MORB and MORNBFI reflected in BSP Circular No. 689 concerning interbank loan transactions.