Reserve Requirement Reduction Schedule
- Reserve requirements reduced by a minimum of three percentage points for 1993.
- Implemented in quarterly steps of one percentage point each.
- Effective dates for reductions: January 29, 1993; April 30, 1993; July 30, 1993.
Amendments in Book I - Commercial Banks
- Sections amended: 1203, 1214, 1225, 1232, 1236, 1253 (against demand, savings, NOW accounts, and time deposits).
- Section 1283 amended (against deposit substitute liabilities).
- Reserve requirements reduced from 25% to 24% (Jan 29), then 23% (Apr 30), and finally 22% (Jul 30).
Amendments in Book II - Thrift Banks
- Sections amended: 2203, 2225, 2253 (against demand deposits and NOW accounts).
- Section 2283 amended (against deposit substitute liabilities).
- Similar reduction pattern as in Book I: from 25% down to 22% across the three specified dates.
Amendments in Book IV - Non-Bank Financial Intermediaries
- Section 4283Q amended concerning deposit substitute liabilities.
- Reserve requirements reduced from 25% to 24%, then 23%, and finally 22% on the respective effective dates.
Legal Authority and Implementation
- Amendments pursuant to Monetary Board Resolution No. 1098 dated November 23, 1992.
- Amendments take immediate effect on January 29, 1993.
- The reserve requirement reductions are subject to quarterly review.
Key Concepts and Definitions
- Deposits and deposit substitutes encompass demand deposits, savings deposits, NOW accounts, time deposits, and deposit substitute liabilities.
- Reserve requirements refer to the statutory minimum reserves banks must hold against liabilities.
Objective of the Amendments
- To reduce reserve requirements to stimulate liquidity and banking operations during 1993.
- Promote efficient use of deposits by banks and quasi-banking institutions.
Procedural Aspects
- Schedule of incremental reduction facilitates gradual adjustment by institutions.
- Applies uniformly across covered institutions and deposit types as specified in the Manual of Regulations.
Penalties and Compliance
- Not explicitly described in the circular but generally subject to penalties under banking regulations for non-compliance.
Governance
- Issued and signed by the Governor of the Bangko Sentral ng Pilipinas, Jose L. Cuisia, Jr., ensuring official regulatory directive.