231 ACCEPTANCE OF GOVERNMENT DEPOSITS
a. The term GOCCs shall refer to government-owned or controlled corporations which are created by special laws. It shall exclude government FIs such as DBP, LBP and Al-Amanah Islamic Investment Bank of the Philippines, corporations which are created under the provisions of the Corporation Law (Act No. 1459, as amended) or the Corporation Code (BP Blg. 68) and private corporations which are taken over by GOCCs.
b. Minimum working balances shall represent the minimum amounts necessary to enable the government instrumentality/political subdivision making the deposit to transact business efficiently and effectively as determined by the Department of Finance.
a. Banks, the majority of the capital of which is owned by the Government, may act as depository of funds of the Government, its political subdivisions and instrumentalities, and GOCCs.
b. Private banks incorporated in the Philippines may act as depository of government funds only with the prior approval of the Bangko Sentral. Local government units may maintain depository accounts preferably in government banks and, in exceptional cases and with the prior approval of the Monetary Board, in the name of their respective government units, in private banks located in or nearest to their respective areas of jurisdiction but the depository bank(s) must also seek the prior approval of the Bangko Sentral: Provided, That a TB/RB/Coop Bank may only act as official depository of government funds pursuant to R.A. Nos. 7906, 7353 and 6938, as follows:
(1) A TB may only act as official depository of national agencies, and of municipal, city or provincial funds in the municipality, city or province where the TB is located;
(2) A RB may only act as official depository of municipal, city or provincial funds in the municipality, city or province where the RB is located; and
(3) A Coop Bank may accept deposits of all government departments, agencies and units of the national and local governments including GOCCs.
c. Where there is no government bank or Bangko Sentral office in the province and the nearest government bank or Bangko Sentral office is inaccessible by ordinary transportation, or transporting/withdrawing the government deposits to and from the said office is impractical or risky, the province, as well as cities and municipalities located therein, may seek approval of the Monetary Board to consider all their funds eligible for deposits with a qualified private depository bank within the province, city or municipality, as the case may be.
d. Banks acting as official depository of government funds may accept demand, savings or time deposits.
e. The authority of a bank to accept government deposits does not obligate the Government, its subdivisions and instrumentalities and GOCCs to deposit with that bank. Thus, even if a TB or RB is authorized by the Monetary Board to accept government deposits, a municipality is not obligated to deposit with that TB or RB. Similarly, a bank which is authorized to accept deposits of the Government or a government corporation because of outstanding loans granted by the bank cannot demand as a matter of right that the Government or government corporation make deposits unless there is a stipulation in the loan agreement.
a. The applicant bank must have complied with the minimum capital required under Sec. 121;
b. It has neither unpaid assessment due nor past due obligations with the PDIC; and
c. The bank’s CAMELS composite rating in its latest examination is not lower than three (3) with Management component score of not lower than three (3).
a. A copy of the resolution of the barangay, municipal or city council (Sangguniang Bayan/Panglunsod) or the provincial board (Sangguniang Panlalawigan) authorizing the deposit of municipal, city or provincial funds;
b. A copy of the resolution of the board of directors of the GOCCs authorizing the deposit of funds of said corporations; or
c. In case of the National Government, its unincorporated branches, agencies and instrumentalities, a written authority to open deposit accounts and/or deposit government funds signed by the duly authorized official of the Department of Finance/Bureau of the Treasury (DOF/BTr) and of the department, bureau, agency, or office making the deposit.
a. Funds of the Government, its subdivisions and instrumentalities and GOCCs, deposited with banks authorized to receive deposits shall be limited to the minimum working balance of the depositor.
b. The aggregate amount of government funds which a private bank can hold at any given time shall not exceed 200% of the bank’s net worth.
c. Where any director, officer or stockholder of a private bank, as defined under Sec. 341 (Definitions), is also an elective or appointive official of a municipality, city or province, said bank is prohibited from accepting deposits from said municipality, city or province unless it is the only bank existing therein: Provided, That this provision shall not be construed as a grant of authority to such elective or appointive public official to act as director or officer of a private bank.
|Required Liquidity Floor|
|UBs/KBs||0%||Government deposits and government deposit substitutes shall continue to be subject to the reserve requirements provided under Sec. 251.|
|For TBs and RBs and Coop Banks||50%||Inclusive of the required reserves against deposits and/or deposit substitutes|
|Required Liquidity Floor|
|For UBs/KBs/TBs/RBs/Coop Banks||0%||Government deposits and government deposit substitutes shall continue to be subject to the reserve requirements provided under Sec. 251.|
a. The free portion of the “Due from Bangko Sentral – Local Currency” after satisfying the legal and other reserve requirements; and
b. Placement of banks in the TDF and the ODF of the Bangko Sentral.
a. Obligations to the Bangko Sentral arising from rediscounting facilities and sale of government securities under repo agreements made in connection with the provisions of Sec. 282, and Sec. 601 (Repurchase agreements with Bangko Sentral);
b. Special time deposits (STDs) and deposit substitutes under the special financing program of the Government and/or international FIs;
c. Obligations to the Bangko Sentral consisting of emergency advances, overdraft facilities, and those arising from peso swap differentials and supervision and examination fees;
d. Marginal deposits on importations;
e. Due to the Treasurer of the Philippines (unclaimed deposit balances);
f. Funds held by participating financial institutions (PFIs) under the GSIS Housing Loan Programs: Provided, That the agreement between GSIS and the conduit banks specify that such funds may be held by the conduit banks for a period of not more than seven (7) calendar days prior to their release to the borrower and prior to the remittance by the conduit banks of payment to the GSIS;
g. Deposits of the BIR and BOC; and
h. Any other form of deposits, borrowings and/or liabilities specifically authorized by law or exempted by the Monetary Board.
a. The deposit account with the Bangko Sentral of the bank concerned shall be debited by the Accounting Department of the Bangko Sentral in the amount of the unauthorized deposit or borrowing upon receipt of a report or notice from the appropriate supervising department of the Bangko Sentral and the deposit account of the government institutions with the Bangko Sentral shall be credited for the same amount. A copy of said report or notice of the appropriate supervising department of the Bangko Sentral shall be furnished each to the bank concerned and the government institutions.
b. The withdrawal of previously granted authority to accept government funds.
c. Without prejudice to the sanctions under Section 35 of R.A. No. 7653, the following administrative sanctions shall be imposed if any part of the certification as required in this Section is found to be false or misleading:
d. Any bank with deficiency in the required liquidity floor against deposits of, and/or borrowings from, the Government and government entities or with excess holdings of such deposits shall: (1) be denied the credit facilities of the Bangko Sentral; and (2) if the deficiency lasts for four (4) consecutive weeks, the bank shall be prohibited from declaring cash dividends and making new loans and investments, except investments in government securities. The prohibition shall be lifted by the Governor of the Bangko Sentral, upon certification by the appropriate supervising department of the Bangko Sentral that the bank has had no deficiency in its liquidity floor and no excess holdings of government deposits for at least four (4) consecutive weeks.