Overview

• Banks must now meet a 50% minimum reserve requirement on sight and savings deposits with daily checks, including 40% in cash and 10% via newly issued TAMAR securities.
• The Treasury’s surprise off-calendar auction is expected to absorb roughly ₱3–4 trillion in pesos as banks seek to comply with higher integration quotas.
• Overdraft, cheque-discount and one-day caución rates have surged to about 77–80% annual, driving an 11% drop in bank overdraft stock since mid-July.
• Banking groups have publicly resisted the daily reserve rules and stiffer penalties but are likely to subscribe to the special licitation to fulfill the new requirements.
• Faced with soaring credit costs, firms are turning to supplier financing, cash hoarding and dollar payments, and analysts warn sustained high rates risk stalling investment and activity before elections.