Compiled by Dino B. Camba



Cir. No. 313 dated 12.27.01 - Amending MOR by requiring a general provision for loan losses, as follows: (a) 5% of the outstanding balance of unclassified restructured loans less the outstanding balance of restructured loans which are considered non-risk and (b) 1% of the outstanding balance of unclassified loans other than restructured loans less loans which are considered non-risk.  Any excess of the booked general loan loss provisions over the amount required as a result of the reduction of the amount required to be set up to 1% shall first be applied to unbooked specific valuation reserves, whether authorized to be booked on a staggered basis or not and only the remainder can be considered as income.

Memo to All Banks dated 01.07.02 - Requiring all banks to report transactions with terrorist individuals and other organizations named in the additional US Terrorist Lists dated Dec. 20, 2001 pursuant to Sec. 9(c) in relation to Sec. 3(b) of RA No. 9160 (Anti-Money Laundering Act of 2001) within five (5) working days from occurrence thereof.

Cir. No. 314 dated 01.08.02 - Extending the effectivity date of Cir. No. 308, series of 2001, from Jan. 1, 2002 to March 1, 2002 which requires any person who brings into or out of the Philippines foreign currency in excess of US$10,000 or its equivalent, to declare the same in writing and to furnish information on the source and purpose of such transport.

Cir. No. 306 (Corrected Copy) dated 01.08.02 - Reissued, wherein the 4th paragraph of Section 1 of the superseded Circular No. 306 dated Nov. 9, 2001 was deleted.  Thus, properties accepted as payments for interest on loans shall not be booked as Real and Other Properties Owned or Acquired (ROPOA).

Cir. No. 315 dated 01.09.02 - Amending Subsection X341.4.a(1) of the MOR by excluding the deposits of the Bureau of the Treasury representing revenue collections of the BIR and the Bureau of Customs, from the loanable funds covered by agri-agra requirements.

Circular Letter dated 01.10.02 - Advising banks of MB Res. No. 19 dated Jan. 4, 2002, forbidding Unitrust Development Bank from doing business in the Philippines and placing its assets and affairs under receivership in accordance with Section 30 of RA No. 7653.

Circular Letter dated 01.16.02 - Requiring prior BSP approval of the following: (a) issuance of subordinated debt instruments qualifying as Tier 2 capital under Circular No. 280 dated March 29, 2001; and (b) any asset transfer plan to a special purpose vehicle/asset management company.

Circular Letter dated 01.22.02 - Prescribing the manner of accomplishing the Foreign Currency Declaration Form by any person who brings into or out of the Philippines foreign currency in excess of US$10,000 or its equivalent, effective February 1, 2002.

Circular Letter dated 01.23.02 - Informing banks of the approval by the MB of the conversion of La Union Development Bank from a thrift bank into a rural bank, to be known as the “LUDB Bank, Inc. (A Rural Bank)”.

Circular Letter dated 01.29.02 - Warning banks of the proliferation of fake bank guarantees, as per Interpol advisory.  The advisory urges banks to report information on bank guarantees bearing the name of JAMAL (JAMAI) ABDUL WAHAB (WAHAD) HAFEZ or slight variations thereof as the beneficiary.

Cir. No. 316 dated 01.29.02 - Amending Section X377 of the MOR providing that banks may invest in equities of financial allied undertakings subject to the limits prescribed under Sec. X378.  Banks may invest in equities of financial institutions catering to small and medium scale industries including venture capital corporation subject to the provisions under Sec. X379.  In addition, UBs may invest in insurance companies as financial allied undertakings.

Cir. No. 317 dated 01.29.02 - Amending Section X380 (Non-Financial Allied Undertakings) of the MOR deleting the conditions required for the equity investment of UBs in health maintenance organizations (HMOs).

Cir. No. 318 dated 01.30.02 - Amending Section 3(i) of Circular No. 245 dated May 25, 2000 providing that the required certification from the Professional Regulation Commission that there is no derogatory information against a bank’s external auditor may now be dispensed with subject to certain requirements.

Circular Letter to All RBs/Coop Banks dated 02.06.02 - Announcing the schedule of courses for rural and cooperative banks for the year 2002 to be offered by the Bangko Sentral ng Pilipinas Institute (BSPI).

Cir. No. 319 dated 02.15.02 - Reducing the liquidity reserve requirement against peso demand, savings, time deposits and deposit substitute liabilities of Universal Banks (UBs) and Commercial Banks (KBs) and Non-Bank Financial Intermediaries with quasi-banking functions (NBQBs), by two (2) percentage points from 9 to 7 percent.  The liquidity reserve requirement of rural and cooperative banks remains at 0%.  The Circular took effect January 18, 2002.

Cir. No. 320 dated 02.18.02 - Amending Section X394 of the MOR on the posting of a list of acquired assets within bank premises, changing the reference to Section 25 of RA 337 (The General Banking Act) to Section 52 of RA 8791 (the General Banking Law of 2000).

Cir. No. 321 dated 02.19.02 - Deleting item (7) of Sec. X146 of the MOR and adding Section X147, on the regulation or restriction on the payment by banks of compensation, allowances, fees, bonuses, stock options, profit sharing and fringe benefits to their directors and officers to protect the funds of depositors and creditors.

Memo to All Banks dated 02.21.02 - Prescribing the format for the annual certification on compliance with existing anti-money laundering regulations required under Section 2 of Circular No. 279 dated April 2, 2001.

Circular Letter dated 02.22.02 - Advising banks of the transfer of supervisory and regulatory powers over building and loan associations (BLAs) from the BSP to the Home Guaranty Corporation (HGC) effective February 7, 2002.

Circular Letter dated 02.28.02 - Informing banks of the approval by the MB of the conversion of Pangasinan Development Bank, Inc. from a thrift bank into a rural bank, to be known as the “Bangko Pangasinan – A Rural Bank, Inc.”.

Memo to All Banks dated 03.01.02 - Memo to All Banks and Other Financial Intermediaries Performing Trust, Other Fiduciary Business and Investment Management Activities dated March 1, 2002, amending Subsection X410.4 of the MOR.

Cir. No. 323 dated 03.13.02 - Amending Section X378 of the MOR imposing new limits on equity investment of a bank in a single financial allied undertaking.

Cir. No. 324 dated 03.12.02 - Expanding the coverage of the microfinance rediscounting facility under BSP Circular No. 282 dated April 19, 2001 to include thrift banks among the eligible borrowers.

Cir. No. 325 dated 03.12.02 - Extending the deadline within which directors must attend the special seminar on corporate governance under Circular No. 296 up to December 31, 2002.

Circular Letter dated 03.12.02 - List of approved applications for new banking offices and new banking offices opened during the 4th quarter of 2001.

Circular Letter to All RB/Coop Banks dated 03.13.02 - Setting the guidelines on the disposal and retention of records of rural/cooperative banks.

Circular Letter dated 03.18.02 - Informing banks of the approval by the MB of the conversion of Crown Savings & Loan Bank, Inc. from a thrift bank into a rural bank, to be known as the “Crown Bank, Inc. (A Rural Bank)”.

Circular Letter dated 03.20.02 - Clarification that during the Holy Week spanning the reserve weeks March 22 – 28, 2002 and March 29 – April 4, 2002, March 27 – 31, 2002 shall be considered as non-reserve days.  Any reserve deficiency at the close of March 26, 2002 shall be applicable for March 27 – 28, 2002 and for March 29 – 31, 2002.

Memo to All Banks dated 03.21.02 - Requiring all banks to submit to the Anti-Money Laundering Council covered transaction reports and suspicious transaction reports involving any individual, group, organization or entity included in the Terrorist Lists issued by the United States Government on February 26, 2002 and March 11, 2002, in accordance with Rules 5 and 9.3 of the Implementing Rules and Regulations of the Anti-Money Laundering Act and other related or applicable rules and regulations.

Circular Letter dated 03.25.02 - Informing banks of the approval of the application of the Bank of China for the establishment of a branch in the Philippines.  The Bank started operations on January 28, 2002.

Circular Letter dated 03.27.02 - Informing banks of the approval by the Securities and Exchange Commission (SEC) of the Articles and Plan of Merger by and among Export and Industry Bank, Inc. and Urbancorp Investments, Inc. as the absorbed corporations and Urban Bank, Inc. as the surviving corporation to be renamed “Export and Industry Bank, Inc.”.

Cir. No. 326 dated 04.03.02 - Amending Sec. X602.2 of the MOR requiring prior BSP approval for all derivatives transactions between banks/NBQBs/FIs and their subsidiaries/affiliates.

Cir. No. 327 dated 04.04.02 - Providing guidelines to govern the establishment and administration of sinking funds for the redemption of redeemable private preferred shares.  The Circular prescribes reports and the recording entries on the fund.

Circular Letter dated 04.05.02 - Approving the indefinite extension of the one-banking day lag for Cash in Vault (CIV) as a component of Available Reserves for the purpose of determining compliance with the minimum reserve requirement.

Circular Letter dated 04.05.02 - Enjoining banks, in order to attain the highest awareness and to ensure the successful observance of Credit Consciousness Week nationwide, to undertake extensively during the period April 24-30, 2002 appropriate promotional and publicity-generating activities under the theme “Susulong and Bayan sa Wastong Paggamit ng Pautang”.  Banks are further enjoined to incorporate the words “Credit Consciousness Week – April 24-30, 2002” in all advertisements during said period.

Cir. No. 328 dated 04.10.02 - Amending Item “c” of Subsection X343.2 of the MOR replacing the BSP Accounting Department with the BSP Comptrollership Department to furnish monthly statements of accounts against which banks shall reconcile their demand deposit accounts with the BSP.

Cir. No. 329 dated 04.11.02 - Amending Section 2.B.1.d of Cir. No. 247 on loans classified as Loans Especially Mentioned, by excluding consumer and small and medium enterprises (SME) loans with no latest income tax returns and/or latest financial statements at the time loans are granted, under certain conditions.

Circular Letter 04.16.02 - Amending the Weekly Report on Required and Available Reserves Against Deposit Liabilities (WRAR) by including Negotiable Certificate of Time Deposits (Record No. 187), Long-Term Negotiable Certificate of Time Deposits (Record No. 416) and Others (Record No. 417).

Memo to All Banks dated 04.18.02 - Advising banks to dishonor the two (2) lost BSP checks Nos. 0000088440 and 0000087752 in the name of Marilou B. Abrio should they be presented for encashment or negotiation and notify the Bangko Sentral ng Pilipinas or the nearest law enforcement agency.

Circular Letter dated 04.18.02 - Enjoining strictly all banks with authority to accept NOW accounts to comply with the minimum features prescribed under Sec. X225 of the MOR and revising item a to read “the order of withdrawal form shall have a size of three (3) inches by seven (7) inches.

Cir. No. 330 dated 04.29.02 - Amending the MOR by adding Subsec. X393.4 on Real and Other Properties Owned or Acquired (ROPOA) which provides that ROPOAs shall be considered as part of the compliance with the required loans to deposit ratio subject to certain conditions.

Cir. No. 331 dated 05.02.02 - Amending Section X383 of the MOR on other limitations and restrictions regarding equity investments of banks, as follows: (a) the equity investments of a universal or commercial bank in any single enterprise shall not exceed at any time 25% of the bank’s net worth; and (b) the total amount of equity investments of a commercial bank in equities in all enterprises shall not exceed 35% of its net worth.

Memo to All Banks dated 05.08.02 - Requiring all banks to file with the Anti-Money Laundering Council reports of suspicious and covered transactions with any individual, group, organization or entity named in attached Terrorist Lists issued by the United States Government on March 27, 2002 and April 20, 2002, in accordance with Rules 5 and 9.3 of Implementing Rules and Regulations of the Anti-Money Laundering Act and other related or applicable rules and regulations, circulars and operating manuals.

Circular Letter dated 05.10.02 - Informing banks that updates to Manual of Regulations for Banks for the period January 1, 1999 to December 31, 1999 are now available for sale at PIRSEO.