CIRCULAR NO. 158 Series of 1998 Series of 1998 Pursuant to Monetary Board Resolution No.

369 dated 12 March 1998, amending the composition o the reser!e re"uirement on all types o peso deposit and deposit su#stitute lia#ilities o e$panded commercial #an%s, commercial #an%s and non&#an%s 'ith "uasi&#an%ing (NB)Bs* unctions and certain types o deposit and deposit su#stitute lia#ilities o thri t #an%s and rural #an%s, and Monetary Board Resolution No. +,3 dated 18 March 1998, ad!ancing the e ecti!ity date o the a#o!ementioned changes, Boo%s -, --, --- and -. o the Manual o Regulations are here#y amended as ollo's/ Book I 0$panded 1ommercial Ban%s and 1ommercial Ban%s SECTION 1. 2ections 12,3, 121+, 1223, 1232, 1236 and 1233 o Boo% 1 o the Manual o Regulations are here#y amended #y reducing the re"uired reser!es against demand and sa!ings deposits, N45 accounts, time deposits and negotia#le certi icate o time deposits regardless o maturity o #an%s 'ith e$panded commercial #an%ing authority, commercial #an%s, the 6and Ban% o the Philippines, the 7e!elopment Ban% o the Philippines and the 8l&8manah -slamic -n!estment Ban% o the Philippines rom thirteen percent (139* to ten percent (1,9*. SECTION 2. 2ection 1283 o Boo% - o the Manual o Regulations is here#y amended #y reducing the re"uired reser!es against deposit su#stitute lia#ilities regardless o maturity rom thirteen percent (139* to ten percent (1,9*. Book II :hri t Ban%s SECTION 3. 2ection 22,3, 2ection 2223 and 2ection 2233 o Boo% -- o the Manual o Regulations are here#y amended #y reducing the re"uired reser!es against demand deposits and N45 accounts rom thirteen percent (139* to ten percent (1,9*. SECTION 4. 2ection 2283 o Boo% -- o the Manual o Regulations is here#y amended #y reducing the re"uired reser!es against deposit su#stitute lia#ilities regardless o maturity rom thirteen percent (139* to ten percent (1,9*. SECTION 5. 2ections 2232, 2236, and 2233 o Boo% -- o the Manual o Regulations are here#y amended #y reducing the re"uired reser!es against time deposits and negotia#le certi icates o time deposits regardless o maturity rom ele!en percent (119* to eight percent (89*. SECTION 6. 2ections 221+ and 2233 o Boo% -- o the Manual o Regulations are here#y amended #y reducing the re"uired reser!es against sa!ings deposits rom ele!en percent (119* to eight percent (89*. Book III

Rural Ban%s SECTION 7. 2ections 32,3 and 3233 o Boo% --- o the Manual o Regulations are here#y amended #y reducing the re"uired reser!es against demand deposits rom thirteen percent (139* to ten percent (1,9*. 201:-4N 8. 2ections 3223, 3236, and 3233 o Boo% --- o the Manual o Regulations are here#y amended #y reducing the re"uired reser!es against N45 accounts rom thirteen percent (139* to ten percent (1,9*. 201:-4N 9. ;nder 2ections 321+ and 3232 o Boo% --- o the Manual o Regulations, the re"uired reser!es against sa!ings and time deposits regardless o maturity shall remain at i!e percent (39*. Book IV Non&Ban% <inancial -ntermediaries 201:-4N 1,. :he irst paragraph o 2ection +283) o Boo% -. o the Manual o Regulations is here#y amended #y reducing the re"uired reser!es against deposit su#stitute lia#ilities, regardless o maturity, rom thirteen percent (139* to ten percent (1,9*. Boo%s -, --, --- and -. 6i"uidity Reser!es or all <inancial -ntermediaries SECTION 11. 4n top o the regular reser!e re"uirements, li"uidity reser!e ratios against peso demand, sa!ings, time deposit and deposit su#stitute lia#ilities shall #e raised, as ollo's/ a. <or e$panded commercial #an%s, commercial #an%s, and non&#an% inancial intermediaries 'ith "uasi&#an%ing unctions (NB)Bs*, rom our percent (+9* to se!en percent (=9*> #. <or thri t #an%s, rom three percent (39* to si$ percent (69*> and c. <or rural #an%s, rom ?ero to three percent (39* against their demand deposit lia#ilities. :he re"uired li"uidity reser!e may #e maintained in the orm o short&term mar%et&yielding go!ernment securities purchased directly rom the B2P&:reasury 7epartment, pursuant to 1ircular No. 1, dated 29 7ecem#er 1993. <orm and 1omposition o Regular Reser!es or all <inancial -ntermediaries 201:-4N 12. Regular reser!es shall #e maintained in the same orm and composition as pro!ided in 2ections 123+, 223+, 323+, 1283, 2283.1, 3283, and +283) o Boo%s -, --, ---, and -., respecti!ely, o the Manual o Regulations or Ban%s and 4ther <inancial -ntermediaries. :his 1ircular shall ta%e e ect 2, March 1998. <or the Monetary Board/ @8BR-06 1. 2-N@24N @o!ernor