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Circulars

Date Issued: 06.16.2010

Number: 689


CIRCULAR NO. 689
Series of 2010

Subject: Interbank Loans

Pursuant to Monetary Board Resolution No. 766 dated  04 June 2010,   the Manual of Regulations for Banks (MORB) and the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI) are hereby amended as follows:

Section 1.   Sec. X343 of the MORB on interbank loans is hereby amended to read as follows:

 “Sec. X343 - Interbank Loans.

         Interbank loan  transactions shall  include, among  other  things,    (a) interbank call loan (IBCL) transactions; (b) borrowings evidenced by deposit substitute instruments; and (c) purchases of receivables with recourse: Provided, however, That only IBCL transactions which are settled through the banks’ respective DDAs with the BSP via PhilPaSS shall be  subject to the reserve requirement prescribed for IBCL in Subsec. X253.1:  Provided, further, That funds borrowed by banks from trust departments of banks or IHs shall be excluded from the herein definition of interbank loan transactions.”  

Section 2.   Subsec. X343.2  of the MORB on accounting procedures is hereby amended  to read as follows:

“Subsec.  X343.2  -  Accounting procedures

a. Both lending and borrowing banks shall immediately pass the corresponding entries in their books.

b. IBCL transactions shall be recorded by the lending bank as Interbank Call Loans Receivable and by the borrowing bank as Bills Payable - Interbank Call Loans Payable.

c. Banks shall reconcile their demand deposit accounts with the BSP against monthly statements of account to be furnished by the BSP Financial Accounting Department, Comptrollership  Sub-Sector.“

Section 3.   Sec.  4343Q  of the MORNBFI on interbank loans is hereby amended to read as follows:

 “Sec. 4343Q - Interbank Loans.

 Interbank  loan  transactions  shall  include,  among  other things,  (a) interbank call loan (IBCL) transactions; (b) borrowings evidenced by deposit substitute instruments; and (c) purchases of receivables with recourse: Provided, however, That only IBCL transactions which are settled through the QBs’ respective DDAs with the BSP via PhilPaSS shall be  eligible to zero percent (0%) reserve requirement:  Provided, further, That funds borrowed by QBs from trust departments of banks/investment houses  shall be excluded from the herein definition of interbank loan transactions.”  

Section 4.   Subsec. 4343Q.2 on accounting procedures is hereby amended  to read as follows:

“Subsec. 4343Q.2 -  Accounting procedures

a. Both lending and borrowing QBs shall immediately pass the corresponding entries in their books.

b.  IBCL transactions shall be recorded by the lending QB as Interbank Call Loans Receivable and by the borrowing QB as Bills Payable - Interbank Call Loans  Payable.

c.  QBs shall reconcile their demand deposit accounts with the BSP against monthly statements of account to be furnished by the BSP Financial Accounting Department, Comptrollership  Sub-Sector.”                    

This Circular shall take effect fifteen (15) days following its publication either in the Official Gazette or in a newspaper of general circulation.

 

FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR.
Governor 

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