Maintenance of Regular Reserves on Peso Deposits and Deposit Substitutes
- Regular reserve requirements are specified according to type of bank and deposit category:
- Demand Deposits and NOW Accounts: 9% for UBs/KBs, 8% for TBs, 7% for RBs/Coop Banks; not applicable to NBQBs.
- Savings Deposits: 9% for UBs/KBs, 6% for TBs, 2% for RBs/Coop Banks; N.A. for NBQBs.
- Time Deposits, Negotiable Certificates of Time Deposits, and Long-Term Non-Negotiable Tax-Exempt CDs: 9% for UBs/KBs, 6% for TBs, 2% for RBs/Coop Banks; N.A. for NBQBs.
- Deposit Substitute Liabilities: 9% for UBs/KBs and NBQBs, 8% for TBs; not applicable for RBs/Coop Banks.
Interest on Reserve Deposits Maintained with the BSP
- All banks and NBQBs maintaining deposits with the BSP up to 40% of their reserve requirement (excluding liquidity reserves held as government securities) will receive interest on these deposits.
- The interest rate is fixed at 4% per annum.
- Interest calculation is based on the average daily balance of deposits credited quarterly.
Implementation and Computation Basis
- This circular became effective on 13 October 2000.
- Computation of liquidity reserves shall use the relevant liabilities' levels reported starting 6 October 2000.
Authority and Adoption
- The changes were adopted by the Monetary Board pursuant to Resolution No. 1716 dated 4 October 2000.
- The Officer-in-Charge signing the circular is Armando L. Suratos.