BSP Circular No. 1211 (Series of 2025) reduces reserve requirement ratios for banks and non-bank financial institutions with quasi-banking functions (NBQBs). It amends MORB Section 251 and MORNBFI Section 211‑Q, with the new rates effective starting the reserve week of 28 March 2025.
Key Changes
- Lower reserve ratios for deposit and deposit substitute liabilities of banks effective reserve week starting 28 March 2025.
- NBQB reserve requirement reaffirmed at 5% of peso-denominated deposit substitutes, effective 28 March 2025.
- MORB and MORNBFI updates align reserve requirements across bank categories and NBQBs.
Who Is Affected
- Universal and commercial banks (UBs/KBs).
- Digital banks.
- Thrift banks (TBs).
- Rural and cooperative banks (RBs/Coop Banks).
- NBQBs with deposit substitute liabilities.
Effective Date & Transition
The circular takes effect 28 March 2025, following publication in the Official Gazette or a newspaper of general circulation.
Compliance Actions Checklist
- Update reserve computations to reflect the new ratios effective 28 March 2025.
- Adjust liquidity planning for affected deposit and deposit substitute liabilities.
- Review NBQB reserve calculations to ensure the 5% peso‑denominated DS ratio is applied.
- Coordinate treasury and reporting teams on reserve week implementation.
FAQs
When do the new ratios apply? Starting the reserve week of 28 March 2025.
Do NBQBs have a different rate? NBQBs must maintain 5% reserves against peso‑denominated deposit substitutes, except for specified exemptions.
Related Links
- Regulator hub: /regulations/bsp
- Topic hub: /regulations/topics/monetary-operations
- Ask CHD: /chat (Ask CHD about this regulation)