2002 BSP Circulars

Guidelines Implementing Section 56 of the General Banking Law of 2000

promote the development of the small and medium enterprises

CIRCULAR NO. 363
Series of 2002
The Monetary Board, in its Resolution No. 1699 dated 21 November 2002 as amended by Resolution No. 1768 dated 5 December 2002, approved the following policy changes in order to help promote the development of the small and medium enterprises:

and the procedures in the watchlisting of erring directors/officers/employees of banks, quasi-banks and trust entities

CIRCULAR NO. 362
Series of 2002
Pursuant to Monetary Board Resolution No. 1772 dated December 5, 2002, the grounds for the disqualification and the procedures in the watchlisting of erring directors/officers/ employees of banks, quasi banks and trust entities as provided for under Circular No. 296 dated September 17, 2001 shall also be applicable to all other institutions under the supervisory and regulatory powers of the Bangko Sentral ng Pilipinas (BSP), except the ground for disqualification due to failure to attend the required seminar for board of directors conducted or accredited by the BSP.

risk-based capital adequacy framework for universal banks and commercial banks

CIRCULAR NO. 360
Series of 2002

Pursuant to Monetary Board Resolution No. 1616 dated November 7, 2002, approving the guidelines to incorporate market risk in the risk-based capital adequacy framework for universal banks and commercial banks, the provisions of the Manual of Regulations for Banks are amended as follows:

representing debt papers of Philippine public sector and private sector obligors

CIRCULAR NO. 359
Series of 2002

Pursuant to Monetary Board Resolution No. 1638 dated 12 November 2002, regular banking units of local universal and commercial banks are hereby prohibited from purchasing Philippine debt papers representing dept papers of Philippine public sector and private sector obligors which were restructured during the period of moratorium in the payment of external debt. They may, however, invest in, or purchase, other foreign currency denominated debt instruments, subject to applicable rules and regulations, particularly on risk management.

funds for the purpose of tax and custom collections

CIRCULAR NO. 358
Series of 2002

Pursuant to Monetary Board Resolution No. 1296 dated 5 September 2002, as amended by Monetary Board Resolution No. 1390 dated 19 September 2002, all authorized agent banks (AABs) of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) are hereby accredited as depository banks for national Government funds for the purpose of tax and customs collections, subject to the following conditions:

of Regulations for Banks to implement Section 20 of the General Banking Law of 2000

CIRCULAR NO. 357
Series of 2002

Section 20 of Republic Act No. 8791, otherwise known as the General Banking Law (GBL) of 2000, allows a bank, subject to prior approval of the Monetary Board, to use any or all of its branches as outlets for the presentation and/or sales of the financial products of its allied undertaking or of its investment house units. To implement said section of the GBL, the Monetary Board, in its Resolution No. 1511 dated October 17, 2002, approved the following rules and regulations amending the Manual of Regulations for Banks by adding a Section and Subsection, as follows:

CIRCULAR NO. 356
Series of 2002

The Monetary Board, in its Resolution Nos. 586 and 1067 dated 25 April 2002 and 25 July 2002, respectively, decided to consider the proposed zero coupon bond issue by the Home Guaranty Corporation (HGC) of up to P7.0 billion 5-year regular series and up to P3.0 billion 7-year special series to finance its guaranty servicing of socialized and low-cost housing projects as:

CIRCULAR NO. 355
Series of 2002

Pursuant to Monetary Board Resolution No. 1361 dated September 19, 2002, he first paragraph of Subsection X240.6 of the manual of Regulations for Banks is hereby amended to read as follows:

CIRCULAR NO. 354
Series of 2002

The Monetary Board in its Resolution No. 1337, dated September 12, 2002, approved the following guidelines on the Bangko Sentral ng Pilipinas (BSP) Rediscounting Facility pursuant to Section 82 (a), (b), and (c) of Republic Act No. 7653, The New Central Bank Act. The guidelines shall replace the existing provisions of Sections X268 and X269 and their corresponding subsections of the Manual of Regulations for Banks, which are hereby revised as follows:

Internal Revenue Allotments (IRA) of local government units

CIRCULAR NO. 353
Series of 2002

The Monetary Board, in its Resolution Nos. 1783 and 347 dated 8 November 2001 and 7 March 2002, respectively, decided to consider securities backed by the unreleased Internal Revenue Allotments (IRA) of local government units (issued by a Special Purpose Trust administered by the Development Bank of the Philippines under the IRA Monetization Program of the Union of Local Authorities of the Philippines), the release of which IRA on scheduled date of payment has been certified by the Department of Budget and Management as not being subject to any conditionalities, eligible as:

CIRCULAR NO. 352
Series of 2002

Pursuant to Monetary Board Resolution No. 1313 dated September 12, 2002, item (7) of Subsec. X341.3.a of the Manual of Regulations for Banks is hereby amended, to read as follows:

CIRCULAR NO. 351
Series of 2002

Pursuant to Monetary Board Resolution No. 1277 dated September 5, 2002, the Manual of Regulations for Banks (MORB) is hereby amended as follows:

CIRCULAR NO. 350
Series of 2002

Pursuant to the Monetary Board Resolution No. 1241 dated August 29, 2002, the following rules and regulations are hereby issued to implement Section 39 of Republic Act No. 8791, the General Banking Law of 2000.

CIRCULAR NO. 349
Series of 2002

Pursuant to Monetary Board Resolution No. 1198 dated 15 August 2002, the Manual of Regulations for Banks is hereby amended, as follows:

of Regulations for Banks regarding trust, Other Fiduciary Business and Investment Management Activities

CIRCULAR NO. 348
Series of 2002

Pursuant to Monetary Board Resolution No. 611 dated 25 April 2002, the provisions of the Subsections of Sec. X404 of the Manual of Regulations for Banks regarding Trust, Other Fiduciary Business and Investment Management Activities are hereby amended to read as follows:

CIRCULAR NO. 347
Series of 2002

Pursuant to the Monetary Board Resolution No. 1171 dated August 8, 2002, the following rules and regulations are hereby issued to implement Section 44 of Republic Act No. 8791, the General Banking Law of 2000.

CIRCULAR NO. 346
Series of 2002

Pursuant to its Resolution No. 977 dated July 4, 2002, the Monetary Board approved the amendment of Subsection X151.7 of the Manual of Regulations for Banks, to read as follows:

CIRCULAR NO. 345
Series of 2002


The Monetary Board under its Resolution No. 1096, dated 1 August 2002, amended Monetary Board Resolution No. 1849 dated 22 November 2001, by amending further Subsection X268.1e of the Manual of Regulations for Banks which shall read as follows.

CIRCULAR NO. 344
Series of 2002


To: All Commercial Banks and Universal Banks

As an exception to Circular No. 135 dated July 22, 1997, the Monetary Board under its Resolution No. 1041 dated July 18, 2002, authorized banks to roll over, without prior Bangko Sentral approval, short-term deliverable forward contracts with non-residents at every maturity during the tenor of the underlying long-term Philippine government securities, subject to the following conditions: