October 2, 2002
BSP CIRCULAR LETTER
TO : All Universal and Commercial Banks
Pursuant to Monetary Board Resolution No. 999 dated 11 July 2002, which allows excess funds of Foreign Currency Deposit Unit (FCDU)/Expanded FCDU (EFCDU) of universal and commercial banks to be lent to the regular banking unit solely for the purpose of funding the latter's net fund outflow on its on-balance sheet foreign exchange transactions, the following amendments to BSP Circular No. 108 dated 09 May 1996, as amended, shall be adopted:
1. Creation of the following accounts —
a) "Lending — RBU" [1-4-47-00]
This represents FCDU/EFCDU funds lent to RBU solely for the purpose of funding RBU's net fund outflow on its on-balance sheet foreign exchange transactions, as allowed under existing regulations.
b) "Borrowing — FCDU/EFCDU” [2-3-49-00]
This represents foreign currency borrowings by RBU from the FCDU/EFCDU, obtained solely for the purpose of funding the net fund outflow on RBU’s on-balance sheet foreign exchange transactions, as allowed under existing regulations. CDHaET
2. Amendment of the definition of the following subsidiary ledger accounts —
a) "Accrued Interest Receivable – FCDU/EFCDU"
This represents interest income...
