Manual of Regulation for Banks


(enacted in 2008)

The Manual of Regulation for Banks of 2008 provides regulatory details on the operations of banks pursuant to the issuances of the Bangko Sentral Ng Pilipinas.

The manual’s goal is to effectively disseminate the regulatory issuances of the Bangko Sentral Ng Pilipinas (BSP) on a timely basis and to provide appropriate guidance to the banking community and the interested public. The manual is the comprehensive authority on the specific subjects that it covers. Finally, banks that violate the provisions of the manual will be held liable.

The manual is divided into the following sections:

  • The organization, administration and management of banks including:
    • Section 116 which provides information on risk-based capital adequacy ratios;
  • Deposit and borrowing operations including:
    • Section 201 which provides information on the authority to accept or create demand deposits;
    • Section 253 which provides information on regular reserves and liquidity reserves against deposit and deposit substitute liabilities;
  • Loans, deposits and special credits, including:
    • Section 304 which provides details on the grant of loans and other credit accommodations;
    • Section 305 which provides details on interest rates and other charges;
  • Trust, other fiduciary business and investment management activities; and
  • Foreign currency deposit system and other operations in foreign currency.

Appendix 45 of the manual “Notes on Microfinance” defines microfinance as “the provision of a broad range of financial services, such as deposits, loans, payment services, money transfers, and insurance products to the poor and low-income households, for their microenterprises and small businesses, to enable them to raise their income levels and improve their living standards.