MORNBFI Vol. 1 - Planters Development Bank

§§ 4239Q.7 - 4254Q11.12.31§ 4239Q.7 (2008 - 4217Q.7)Inapplicability of certain regulations. Secs.4235Q and 4236Q shall not apply to bondsissued under these guidelines.F. (RESERVED)Sec. 4240Q (Reserved)G. INTERESTSec. 4241Q (2008 - 4236Q) Yield/Interest Ratesa. Deposit substitutes of QBs shallnot be subject to yield or interest rateceilings.b. A matured and an unclaimeddeposit substitute shall be payable ondemand and shall earn interest or yieldfrom maturity to actual withdrawal orrenewal at a rate applicable to a depositsubstitute with a maturity of fifteen (15)days.Secs. 4242Q - 4252Q (Reserved)H. RESERVESSec. 4253Q (2008 - 4246Q) ReservesAgainst Deposit Substitutes. QBs shallmaintain regular reserves of ten percent(10%) of deposit substitute liabilities asdefined in Section 95 of R.A. No. 7653,regardless of maturities except:(a) borrowings from the BSP through thesale of government securities underrepo agreements made in connectionwith the provisions of Sec. 4601Q;(b) deposit substitutes arising fromspecial financing programs of theGovernment and/or international FIs;(c) interbank call loan transactionsunder Sec. 4343Q; and (d) bonds underSec. 4239Q for which the reserverequirement shall be five percent (5%).On top of the regular reserverequirements, an additional elevenpercent (11%) liquidity reserves againstdeposit substitute liabilities (except Items“a” to “d” above) of QBs shall be imposedwhich may be maintained in the formprescribed in Item “a” of Sec. 4254Q. Anydeficiency shall be in the form prescribedin Item “b” of Sec. 4254Q.Provided, That deposit substitutesevidenced by repo agreements coveringgovernment securities up to the amountequivalent to the adjusted Tier 1 capitalof the QB shall be subject to the statutoryreserve of four percent (4%): Provided,further, That such rate shall apply only torepo agreements, the documentation ofwhich conforms with, and were deliveredto a BSP accredited third party custodianas required under existing BSPregulations.(As amended by Circular Nos. 732 dated 03 August 2011,726 dated 27 June 2011 and 632 dated 19 November 2008)Sec. 4254Q (2008 - 4246Q.1)Composition of Reserves. Thecomposition of the reserves shall be asfollows:a. Not more than the percentage ofliquidity reserves required under Sec.4253Q shall be maintained in the ReserveDeposit Account (RDA) with the BSP ormay be in the form of the following:Provided, That it complies with theguidelines shown in Appendix Q-41.(1) Short-term market-yieldinggovernment securities purchased directlyfrom the BSP-Treasury Department;(2) NDC Agri-Agra ERAP Bonds,regardless of maturity; and(3) Poverty Eradication andAlleviation Certificates (PEACe)bonds only to the extent of the original gross issue proceeds determinedat the time of the auction, plusManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart II - Page 9