Regulatory Alerts2025-03-11
Circular No. 1211: Reduction in Reserve Requirements
The Bangko Sentral ng Pilipinas issued Circular No. 1211 to implement a reduction in reserve requirement ratios for banks and non-bank financial institutions with quasi-banking functions. The directive amends the Manual of Regulations for Banks and Non-Bank Financial Institutions to establish new reserve rates for various deposit liabilities, effective for the reserve week starting 28 March 2025. These changes apply to demand, savings, and time deposits as well as deposit substitutes, with specific percentages varying by institution type and currency denomination.
, . .* , " BANGKO SENTRAL NG PIL!PINAS Subject: Reduction in Reserve Requirements The Monetary Board. in its Resolution Nos. 1027 and 186. A dated 5 September 2024 and 20 February 2025. approved the reduction in the reserve requirement ratios of deposit and deposit substitute liabilities of banks and non-bank financial institutions with quasi-banking functions (NBQBs) Section I, Section 251 of the Manual of Regulations for Banks on Required reser/es against deposit and deposit substi'Fure nabi7ities. as amended by Circular Nos. 1154 dated 14 September 2022.1175 dated 233une 2023.1176 dated 293une 2023. 1185 dated 13 December 2023 and 1201 dated 20 September 2024. is hereby further amended to read, as follows: ACCOUNTS SUBJECT To RESERVES; AMOUNTS REQUIRED The following rules and regulations shall govern the reserves against deposit and deposit substitute liabilities. Required reserves against deposit grid deposit substitute liabilities. The rates of required reserves against deposit and deposit substitute liabilities in local currency of banks effective reserve week starting 28 March 2025 shall be as follows: OFFICE OF THE GOVERNOR CIRCULAR No. 12/1 Series of 2025 251 a. Demand De OSIts b. Now Accounts Reservable Liabilities c. Savings Deposits (excluding basic de OSit accounts) d. Time Deposits. Negotiable CTDs, Long-Term Non-Negotia ble Tax Exem t CTDs e, xxx f. De OSit Substitutes (DS) XXX h. xxx I. xxx Peso deposits lodged under Due to forei n banks UBs/KBs I- , ,. .. , . * . . , ,, r. '...' . Peso deposits lodged under Due to Head Office/Branches/Agencies Abroad (Philippine branch of a forei n bank) S% S% k. Digital Banks S% xxx 2.5% S% 2.5% xxx 2.5% TBs xxx S% 09'o 2.5% xxx RBs/Coop Banks O% XXx o% xxx xxx 2.5% O% 5% o% XXX o% xxx O% XXX XXx 5% O% 2.5% XXX O% Xxx xxx XXx xxx 2.5% NA NA xXx xxx XXX XXX NA NA xxx NA XXX
,. Section 2. Section 211-Q of the Manual of Regulations for Non-Bank Financial Institutions on Reserves against deposit substitutes. as amended by Circular Nos. 1175 dated 23 June 2023 and 1201 dated 20 September 2024. is hereby further amended to read, as follows: 211. Q RESERVES AGAINST DEPOSIT SUBSTITUTES NBQBs shall maintain required reserves equivalent to five percent (5%) of pesodenominated deposit substitute liabilities as defined in Section 95 of R. A. No. 7653, as amended by R. A. No. 1,211, regardless of maturities except: a. xxx; b. xxx; and c. XXX effective reserve week starting 28 March 2025. Section 3. This Circular shall take effect on 28 March 2025 after its publication either in the Official Gazette or in a newspaper of general circulation. 11 March 2025 FOR THE MONETARY BOARD: ^!;:^I';E^;;;: Governor , Page 2 of 2