BSP Circular No. 1217 (Series of 2025) amends the MORB and MORNBFI to adopt the Global Master Repurchase Agreement (GMRA) for BSP repo and reverse repo facilities. It also updates related settlement procedures and check-clearing provisions linked to PhilPaSS operations.
Key Changes
- GMRA adoption for BSP repo (RP) and reverse repo (RRP) transactions with participating entities.
- Scope of participating entities confirmed for repo, reverse repo, and overnight lending facility (OLF) transactions (banks and quasi-banks).
- USD repo facility recognized, subject to BSP terms and conditions under the repo agreement.
- Tax and withholding responsibilities clarified for repo/RRP counterparties.
- Settlement procedures for government securities under repo agreements aligned with PhilPaSS agreement provisions.
- Terminology update: "Overnight RRP" replaced with "RRP" in Appendix 88/Q-51.
- Appendix 35 deleted (Schedule of Peso RTGS), with MORB sections updated accordingly.
- Returned checks workflow updated to align with BSP-prescribed timelines for dishonored items.
- Check-clearing windows clarified in Appendix 123 for returned items (T+0 PM adjustment and T+1 AM window).
Who Is Affected
- Banks (UBs/KBs, digital banks, TBs) and quasi-banks participating in BSP repo/RRP/OLF facilities.
- Treasury and liquidity management teams using BSP monetary operations facilities.
- Operations teams handling PhilPaSS settlements and check-clearing timelines.
Effective Date & Transition
The circular takes effect 15 calendar days after publication in the Official Gazette or a newspaper of general circulation.
Compliance Actions Checklist
- Update repo/RRP documentation to reference the GMRA for BSP facilities.
- Review eligibility and participation requirements for RP/RRP/OLF transactions.
- Align tax handling and withholding procedures for repo/RRP settlements.
- Confirm settlement workflows for BSP government securities trades under PhilPaSS agreements.
- Update internal check-clearing timelines for returned items per BSP-prescribed windows.
- Revise SOP references to replace "Overnight RRP" with "RRP."
FAQs
Does the GMRA apply to both repo and reverse repo with the BSP? Yes. RP and RRP transactions with the BSP are governed by the GMRA and BSP rules.
Do IBUs or other units submit separate liquidity reports for RRP/Repo? This circular focuses on BSP monetary operations and settlement rules, not separate liquidity reporting.
What changed in check-clearing procedures? Returned item timelines are aligned with BSP-prescribed windows, including PM adjustment (T+0) and AM return window (T+1).
Related Links
- Regulator hub: /regulations/bsp
- Topic hub: /regulations/topics/monetary-operations
- Ask CHD: /chat (Ask CHD about this regulation)