Circular No. 1229: Amendments to the BSP Regulations on Reserve Requirements and Related Reports

BANGKO SENTRAL NG PILIPINAS Amendments to the BSP Regulations on Reserve Requirements and Related Reports The Monetary Board. in its Resolution No. 33 dated 22 January 2026. approved the following amendments to the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non. Bank Financial Institutions IMORNBFli pertaining to reserve requirements and related reports. Section I. Section 251 of the MopB. as amended by BSP Circular Nos. 1175 dated 23 June 2023. 1176 dated 29 June 2023. 1185 dated 3 December 2023, 1201 dated 20 September 2024. and 12/1 dated 11 March 2025. on Accounts Subject to Reserves; Amounts Required is amended to read. as follows: Subject CIRCULAR No. 1229 OFFICE OFTHE GOVERNOR Series of 2026 251 ACCOUNTS S B. ECTTO RESERVES; AMOUNTS REQUIRED The following ru es and regulations shall govern the reserves against deposit and deposit substitute Iiabili ies. Required reserv s against deposit and deposit substitute liabilities. The rates of required reserves agains deposit and deposit substitute liabilities in local currency of banks effective reserve week starting 27 February 2026 shall be as follows: XXX e Long-term Negotiable Certificates of Time Deposits' XXX g. Bonds I. xxx Z. Other Bonds' h. Mortgage/CHM cert. ' Rogerva e Liabilities XXX For reserve week starting 27 ebruary 2026 Xxx Section 2, Secti amended to read. as fol 253 EXEMPTION FROM RESERVE REQUIREMENTS Local banks may deduct from the amount of their gross demand deposits. the total of their Due from Local anks -Demand and Due from Local banks - Clearing Account in an amount not exceeding he total of their Demand Deposits-Banks and Due to Local Banks. As used herein. the to in gross demand deposits shall mean the sum of all individual UBs/, CBs XXX O% XXX 253 of the MORB on Exemptions from Reserve Requirements is Digital Banks XXX WS: XXX Z% TBs XXX XXx O% XXX XXX xxx RBs/Coop Banks xxx O% XXX Z% XXX O% O% XXX

deposits. including dep sits made by other local banks. the Philippine Government. its political subdivisions. an instrumental ities, and GoCCs. Section 3. Secti0 254 of the MORB on Computation of Reserve Position is amended to read, as follows: The reserve POS tion of any bank and the penalty on reserve deficiency shall be computed based on a seven (7)-day week. starting Friday and ending Thursday (reserve period), including Saturdays. Sundays. public special/legal holidays. non-banking days or declared half-day holidays and days when there is no clearing: Provided That with reference to public special/legal holidays, non-banking days. unexpected declared non-banking days. declared half day holidays and days when there is no clearing, the reserve position as calculated at the close of the business day immediately preceding such public specialnegal holidays. non-banking da s and unexpected declared non-banking days and declared half￾day holidays and days when there is no clearing. sha I apply thereon. For purposes of determining the penalty on reserve deficiencies. if a declared nori-reserve day falls on a Friday or any two (2) days in a reserve period to ther than Saturday and Sunday), such reserve period will be combined with the following reserve period as a "single reserve period". The single reserve period will start on the Friday of the first reserve period where a non-reserve day falls on a Friday or wh n the two (2) nori. reserve days occurred (other than Saturday and Sunday). and will end on hursday of the following reserve period. For this purpose t e principal office in the Philippines and all other banking offices located therein shall be treated as a single unit. The guidelines on the computation of a banks' reserve position during Philippine holiday and determination of the nori-reserve day fo purposes of implementing the single reserve period, are shown in Appendi*'88. Measurement of, servereq"ifeme"tandavai/ablereserves. The required reserves in the current period reference reserve week) shall be computed based on the corresponding levels of d POSit. deposit substitutes and all other reservable liabilities of the prior week. Meanwhile. th main mode of compliance. specifically the deposits maintained by banks in Demand Deposit Account IDDA) with BSP. and alternative modes of compliance with the required reserves for the current reserve period will be included in the computation of available reserves in the current period (reference reserve period ). The required reserve is deducted from the availa Ie reserve in computing the reserve position. 254 COMPUTATION OF RESERVE POSITION Section 4. Section 255 of the MORB on reserve deficiencies sanctionsis amended to read. as follows: Whenever the reserve position of any bank in a day computed in the manner specified in Sec 254 is below the required minimum. It shall pay the Bangko Sentral one' tenth of one percent (In O of I%) on the amount of the deficiency: Provided however That a bank shall be permitted to offset any reserve deficiency occurring one q) or more days of the reserve week covered by the report against excess reserves which it may hold on other days of the same reserve week in which case. the penalty shall be computed based on the total net reserve deficiency for he week. 255 RESERVE DEFICIENCIES; SANCTIONS In case of abuse a bank shall automatically lose the privilege of offsetting reserve deficiency in the aforesaid manner until such time that it maintains its daily reserve position at the required minimum or at least one IT I reserve period. See Appendix 92 on Regula o Relief for Banks Affected by Calamities Page Z of 6

As used in this ection. ^buse' in the privilege of offsetting reserve deficiencies against excess reserves hall mean having reserve deficiencies occurring four (4) or more times during any given week for two (2) consecutive reserve periods. whether or not resulting in net weekly deficiencies Chronic reserve deficiency. penalties. In cases where the bank has chronic reserve deficiency in deposit/d POSit substitute liabilities, the bank shall be denied the credit facilities of the Bangko Sentral: and the Monetary Board may: a. limit or prohibit the making of new loans or investments by the bank an b. prohibit the declaration of cash dividends. The board of directors of said bank shall be notified of such chronic reserve deficiency and the penalties therefor. and shall be required to immediately correct the reserve position of the bank by maintaining the required reserve position for one 01 reserve period. As used in this section. thron/^' reserve deficiency"shall mean having net reserve deficiencies for two (2) c risecutive reserve periods. follows: xxx Section 5. Secti0 256 of the MORB on report on compliance is amended to read. as Every bank shall submit a weekly report to the Bangko Sentral stating its daily deposit/deposit substitu e liabilities as well as any other reservable liabilities using the procedures outlined in A pend/:*' 7 256 REPORTON COMPLIANCE Section 6. Section 4/8 of the MopB on Reserves Against Trust and Other Fiduciary Accounts (To FA) - Others is amended to read. as follows 4/8 RESERVES OTHERS The required reserves against To FA- Others shall be zero percent 10%) effective reserve period starting 27 February 2026. XXX Report@fc@inpff rice. Every bank shall submit a report to the Bangko Sentra of its dally required reserves on To FA- Others in accordance with Appendix 7 Section 7, App ridix 14 of the MopB on Rules Governing Issuance Mortgage/Chattel Mortga e Certificate by Thrift Banks is amended to read as follows: Appendix 14-RULES GOVERNING ISSUANCE OF MORTGAGE/CHATrEL MORTGAGE CERTIFICATE BY THRIFT BANKS IAPpendix to Sec. 293-B/C) GAINST TRUST AND OTHER FIDUCIARY ACCOUNTS ITOFAj XXX xxx j. A zero perce t to%) reserve shall be maintained against all issu s of mortgage/cha el mortgage certificates effective reserve period starting 27 February 20 6. The Monetary Board may change the required reserves as may be necessary. of Page 3 of 6

Section a. Section 214-Q of the MORNBFl on Computation of Reserve POS tion is amended to read as follows: The reserve position of any QB and the penalty on reserve deficiency shall be computed based on a 7-day week. starting Friday and ending Thursday Ireserve periodj, including Saturdays. Sundays, public special/legal holidays, non- business days. unexpected declared non-business days or declared half-day holidays and days when there is no clearing: Provided That with reference to public specialnegal holidays, non-business unexpected declared non-business days. declared half day holidays and days when there is no clearing. the reserve position as calculated at the close of the business dayimmediately preceding such public special legal holidays. non-business days and unexpected declared non. business day/s and declared half day holidays and days when there is no clearing. shall apply thereon. For purpo es of determining the penalty on reserve deficiencies. if a declared non-reserve day falls on a Friday or any two 12 I days in a reserve period (other than Sa urday and Sunday). such reserve period will be combined with the following reserve period as a "single reserve period". The single reserve period will start on the Friday of the first reserve period where a non-reserve day falls on a Friday or when the two (2) nori-reserve days occurred (other than Sa urday and Sunday). and will end on Thursday of the following reserve period. For this purpose. the principal office in the Philippines and all other offices located therein shall be treated a a single unit. 214-q COMPUTATION OF RESERVE POSITION The guidelines on the computation of a QB's reserve position during Philippine holidays and in deter miring the nori-reserve day for purposes of implementing the single reserve period are shown in Appendix Q-51. The required reserves shall be computed based on the corresponding levels of deposit substitute Iiabilit es of the prior week. Meanwhile. the main mode of coin Iiance. specifically the deposits aintained by banks in Demand Deposit Account (DDA) wit BSP and alternative modes o compliance with the required reserves will be included in the computation of available eserves in the current period iteference reserve periodj. Report@" Coinp/I rice, Every QB shall submit a weekly report to the Bangko Sentral of its daily deposit subs itutes and all other reservable liabilities in accordance with Appendiv Q-3 Section 9. Secti0 215-Q of the MORNBFl on reserve deficiencies sanctions is amended to read as follows: 2.5-Q RESERVE D ICiENCiEs; SANCTIONS a. Whenever the eserve position of any QB in a day computed in the manner specified in Sec. 214. Q is below the required minimum. the QB concerned shall pay the Bangk Sentrai one-tenth of one percent 11nO of I%) on the amount of the deficiency: Provided however That the QB shall be permitted to offset any reserve deficiency occurring one OI or more days of the reserve week covered by the report against excess reserves which it may hold on other days of the same reserve week"'in which case. the penalty shall be computed based on the total net reserve defi Iency for the week. In case of abuse. the QB shall automatically lose the privilege of offsetting reserve deficiency in the aforesaid manner until such time that it maintains its dail reserve position at the required minimum for at least one (1) reserve period. Page 4 of 6

As used in this Section. abuse In the privilege of offsetting reserve deficiencies against excess reserves shall mean having reserve deficiencies occurring our (4) or more times during any given reserve period for two (2) consecutive eserve periods. whether or riot resulting in net weekly deficiencies b. In cases where the QB has chronic reserve deficiency on deposit substitute liabilities, the Monetary Board may (1) limit or prohibit the making of new loans or investments by the QB concerned; (2) prohibit the declaration of cash dividends; and/or (3 ) impose such other sanctions. as it may deem necessary. The board of directors of such QB shall be notified of such chronic reserve deficiency and the penalties therefor. and shall be required to immediately correct the reserve position of the QB by maintaining the required reserve position for one reserve period. As used in thi Section. the following terms shall have the following meanings: Chronic reserve deficiency shall mean having net reserve deficiency for two (2) consecutive reserve periods. New loan and new ,huestment shall refer to any loan and any investment involving disb rsement of funds. Section To. Secti n 4/7-Q of the MORNBFl on Reserves Against Trust and Other Fiduciary Accounts (To FA) - Others is amended to read as follows: XXX "' See Appendix Q-73 4/7-Q RESERVES AGAINST TRUST AND OTHER FIDUCIARY ACCOUNTS ITOFAj￾OTHERS XXx The reserves to b maintained shall be zero percent (0%) effective reserve period starting 27 February 2026. XXX Report of co p"^"ce. Every institution shall submit a weekly report to the Bangko Sentral o its daily required reserves on To FA-Others, in accordance with Appendix Q-3 Section, ,. The re orrs (Consolidated Daily Report of Condition land corresponding Control Prooflistl. Consol dated Report on Required and Available Reserves Against Deposit Substitutes and Special inaricing. Weekly Report on Required and Available Reserves Against Deposit Liabiliti s land the corresponding Control Proof listl. and the Capital Reserves System ICAREl eports on Required and Available Reserves) are replaced by the Weekly Reserve Report IWRRi. The WRR must be submitted by all banks and Nori-Bank Financial Institutions with Quasi. Banking Functions NBQBs) following the prescribed format indicated in Annex A of this Circular. In relation o this, Appendix 7 of the MopB, as amended. on the Reports Required of Banks and A pendix Q-3 of the MORNBFl. as amended. on the List of Reports Required from Quasi Ban s. are further amended as shown in Annex B of this Circular Section ,2. The BS shall continue to monitor the Reserves Against Trust and Other Fiduciary Accounts (To FA) - Others notwithstanding the reduction of reserve requirement Page 5 of e

. rates. Thus. banks and financial institutions authorized to engagein trust and other fiduciary business must submit their To FA-Others report following the prescribed format indicated in Annex A of this Circular. In relation to this. Appendix 7 of the MORB, as amended. on the Reports Required of Banks and Appendix Q-3 of the MORNBFl. as amended. on the List of Reports Required from Quasi Banks, are further amended as shown in Annex C of this Circular Section 13. The manner of the electronic submission of WRR as well as the Reserves Against To FA to the Department of Supervisory Analytics IDSA) of the Bangko Sentral shall be covered by a separate issuance Section 14. This Circular shall take effect on fifteen (15) calendar days following its publication either in the Official Gazette orin a newspaper of general circulation. Iy11 February 2026 FOR THE MONETARY BOARD: ^ ^..,, L. __., ELI M. REMOLONA, JR. Governor Page 6 of 6

I. For All Bank Types: I. Demand Deposits' 2. Savings Deposit Account Name 3. Now Accounts a. Basic Deposit Accounts 4. Time Certificate of Deposits b. PERA Self-Custody Deposit Accounts Address WEEKLY RESERVES REPORT For Reference Week c. All Other Savings Deposits2/ a. Long-term Negotiable Certificates of Time Deposits (UNCrDs)'/ B. Deposit Substitutes Name of Bank b. All other Time Certificate of Deposits'/ I. Mortgage/CHM Certificates 51 C. Bonds Payable 2. Others I. Sustainable Bonds D. Peso deposits lodged under Due to foreign banks" 2. Other Bonds3 Record No. Code Classification: GENERAL 4/1 4/2 Friday 832 to 834 833 Saturday Annex A of the Circular 4/3 428 425 Sunday 427 A M O U N T (In Pesos) 445 481 441 Monday 455 460 461 435 Tuesday Wednesday Thursday Page I of 4

E, Peso deposits lodged under Due to Head Office/Branches/Agencies Abroad (Philippine branch of a foreign bank) '1 F. Additional Information: I. Total Loan Portfolio 2. Due from Local banks - Clearing Account 3. Due from Local Banks - Demand Deposits 4. Due to Local Banks IGross) 5. Demand Deposit- Banks 6. Special Time Deposits (STD):01 7. Repurchase Agreements with Bangko Sentral rig Pilipinas 8. Others (Specify): I. 2. 3 4. Local banks may deduct from the amount of their gross demand deposits, the total of their Duelrom 10,0180nks -Demond und Duelrom L o18 k - Cl i n o I eir Demand DepositsBonks und Due to IOColBonks. As used herein, the term gross demond deposits shall mean th I 11 ' d' 'd , ' Philippine Government, its political subdivisions. and instrumental ities, and Goccs Y e Refers to savings deposits excluding Basic Deposit Accounts and PERA Self-Custody Deposit Accounts. Issued with prior approval of the Bangko Sentral per Section 217 of the Manual of Regulations for Banks as amended b C' I 1144 d d Refers to time deposits other than LTNCTDs and Special Time Deposits 1STDsj from the Agrarian Reform Fund Commission and s ec' I d ' f With prior approval of the Monetary Board, TBs may issue and deal in mortgage and Collateralized Home Mortgage ICHM) certificates. Th r I d I ' 'n i certificates is shown in Appendix14 of the Manual of Regulations for BankslMORn) B g e issuance o sai '/Refers to Deposit Substitutes other than MortgagerCHM Certificates. As stated in Circular 1185 dated L3 December 2023, this shall in dude outstanding and newissuances of reen, social, t ' b'I' d h of the Securities and EXchange Commission and/or other relevant regional or international standards acceptable to the market, whi h I I d h ' apita Markets Association or endorsement of the ASEAN Capital Markets Forum. Outstanding and new, 55uances his 5< ' b; b d I 2025 shall be subject to the applicable reserve requirement against other bonds P ecem er SIREjers to Bonds other than Sustainable Bonds. Refers to peso deposits, except those utilized as capital of foreign banks tincluding Head Office/Branches/Agencies abroad of local branch f f i n b k " i " and "Due to Head Office/Branches/Agencies Abroad" accoun!s as provided under Sec. 172 IAdopjjon of the Manual D/Acco t , d g a S" STDs from the Agrarian Reform Fund Commission and special savings deposits from farmer-borrowers. 5. 436 580 030 310 430 640 785 446 665 666 Classification: GENERAL 667 668 669 670 Page 2 of 4

11. For Nori-Banks with Quasi. Banking Functions: WEEKLY RESERVES REPORT B. Deposit Substitutes Exempted from Reserve Requirements OSI a. Repurchase Agreements with Bangko Sentral rig Pilipinas" ACCOUNT NAME U SIUeS b. Special Financing 21 C. Bonds D. Alternative Compliance Name of NBQB a. b. Address For Reference Week C. ' Borrowings from the Saneko Sentral through the sale of goveinment securities under repo agreements made in t' ' h h ' ' - . Deposit substitutes arising from special financing programs of the Government and/or international financial institutions. tinm/dd/CCW) Rec, No. Classification: GENERAL 10 Code 33 Friday 45 40 to Saturday 87 200 22.6 217 A M O U N T tin Pesos) Sunday 218 tinm/dd/CCW) Monday Tuesday , Wednesday Thursday Page 3 of 4

1/1. For Banks and Institutions authorized to engage in Trust and Other Fiducia Business: TRUST AND OTHER FIDUCIARY ACCOUNTS (To FA) For Reference Week ACCOUNTS (To FA) - OTHERS ACCOUNTS ITOFA) - OTHERS' Account Name 11 except accounts held under 111 Administratorship; (21Trust Under Indenture; 131 Custodianship and Safekeeping; (41 Depository and Reor anization; 151 Em I B Ii PI u ; Escrow; (7) Personal Trustltestamentaryorliving trust);181 Executorship; PIGuardiansh:p; (10) Lifelnsurance Trust;1111 Pre-need Plansjinstitutional/individual);1121PersonalE d R ' n; Account IPERAi; and (13) Legislated and QuasiJudicialTrust; and 1141 Specialized Institutional Accounts under Trust. Record No. 01.0 Friday Saturday to Classification: GENERAL AMOUNT (in Pesos) Sunday Monday Tuesday Wednesday Thursday , Page 4 of 4

, , * , , . , Appendix 7: Reports Required of Banks REPORTS REQUIRED OF BANKS SECONDARY REPORTS A. UBs/KBs/o1 its I Banks' Category XXX Form No. A-2 B. TBs XXX MOR Ref. XXX XXX A-2 Report Title C. RBs/Coo Sec. 256 XXX XXX Weekly Reserves Report IWRR) XXX XXX A-2 Banks Annex B of the Circular Sec 256 Frequency 'XXX A endix .5 List of Re orts Re uired from uasi Banks XXX Weekly Reserves Report (WRR) Category XXX Submission Deadline Sec 256 Weekly XXX A-2 Form No Weekly Reserves Report MRR) 3 banking days after end of reference week XXx XXX XXX XXx submission Procedure/e-mail Address MOR Ref. Weekly Submitted via Prudential Reporting Innovation and Monitoring Engine PRIME XXX 6 banking days after end of reference week Sec 214-Q XXx Report Title XXX XXX Weekly Weekly Reserves Report MRPj XXX Submitted via Prudential Reporting Innovation and Monitoring Engine IPPIME 4 banking days after end of reference week XXX Frequency XXx Weekly Submitted via Prudentiai Reporting Innovation and Monitoring Engine IPRiMEl xXX Submission Deadline XXX 4 banking days after end of reference week XXX Submission Procedure/e-mail Address Submitted via Prudential Reporting Innovation and Monitoring Engine (PRIME) XXX

, , * . . . . Appendix 7: Reports Required of Banks REPORTS REQUIRED OF BANKS SECONDARY REPORTS A. UBs/KBs Category XXX Form No. MOR Ref. XXX B. TBs Sec 4/8 XXX A-2 TB Report Title Report on Trust and Other Fiduciary Accounts froFA) Form 20B XXX Annex C of the Circular XXX Appendix Q, 3 List of Reports Required from Quasi Banks Frequency Sec. 4/8 Category XXX Report on Trust and Other Fiduciary Accounts ITOFA) XXX Weekly Submission Deadline XXX XXX Form No. A. 2 3 banking days after end of reference week XXX MOR Ref. XXX XXX Submission Procedure/e-mail Address XXX Weekly XXX Sec. 4/7-Q Submitted via Prudential Reporting Innovation and Monitoring Engine PRIMEj Report Title XXX Report on Trust and Other Fiduciary Accounts CFOFAj 3 banking days after end of reference week XXX XXX XXx XXX XXx Frequenc y Submitted via Prudential Reporting Innovation and Monitoring Engine IPRIME) XXX Weekly Submission Deadline XXX 3 banking days after end of reference week XXX XXX Submission procedure/e-mail Address Submitted via Prudential Reporting Innovation and Monitoring Engine IPRIME) XXX