Title
Amendments on Interbank Loan Rules
Law
Bsp Circular No. 689
Decision Date
Jun 16, 2010
BSP Circular No. 689 amends regulations on interbank loans, defining eligible transactions and accounting procedures while establishing reserve requirements for interbank call loans settled through the BSP's PhilPaSS system.

Reserve Requirements

  • For banks, IBCL transactions settled through their respective DDAs with BSP via PhilPaSS are subject to the reserve requirements prescribed under Subsection X253.1 of the MORB.
  • For quasi-banks (QBs), such IBCL transactions settled through their respective DDAs with BSP via PhilPaSS are eligible for zero percent (0%) reserve requirement.

Accounting Procedures for Banks

  • Both lending and borrowing banks must immediately record the corresponding accounting entries in their books.
  • Lending banks shall record IBCL transactions as "Interbank Call Loans Receivable."
  • Borrowing banks shall record IBCL transactions as "Bills Payable – Interbank Call Loans Payable."
  • Banks must reconcile their demand deposit accounts with the BSP against monthly statements of account provided by the BSP Financial Accounting Department, Comptrollership Sub-Sector.

Accounting Procedures for Quasi-Banks (QBs)

  • Both lending and borrowing QBs must immediately record corresponding entries in their books.
  • Lending QBs shall record IBCL transactions as "Interbank Call Loans Receivable."
  • Borrowing QBs shall record IBCL transactions as "Bills Payable – Interbank Call Loans Payable."
  • QBs are required to reconcile their demand deposit accounts with BSP against monthly statements furnished by the BSP Financial Accounting Department, Comptrollership Sub-Sector.

Effective Date

  • This circular and its provisions shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Authority and Issuance

  • Issued pursuant to Monetary Board Resolution No. 766 dated June 4, 2010.
  • Amends relevant sections of the Manual of Regulations for Banks (MORB) and Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).
  • Signed by Amando M. Tetangco, Jr., Governor of the BSP, for the Monetary Board.

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