Business and Economy
BSP sets indefinite moratorium on long-term deposit issuance
The circular said the LTNCTD may still be issued beyond the end-2020 deadline “provided, further, that requests for authority to issue LTNCTDs shall only be accepted by the appropriate supervising department” of the BSP until Sept. 30, 2020. (File Photo: Bangko Sentral ng Pilipinas/Facebook)
MANILA — An indefinite moratorium on the issuance of long-term negotiable certificate of time deposits (LTNCTDs) will be in place starting Jan. 1, 2022.
The LTNCTDs are bank products that have longer tenors compared to the regular time deposits.
In Circular 1059 issued last November 15, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Francisco Dakila Jr. said LTNCTDs that have been approved but are still unissued by end-December 2020 may still be issued provided this is done within the period allowed by the BSP.
The circular said the LTNCTD may still be issued beyond the end-2020 deadline “provided, further, that requests for authority to issue LTNCTDs shall only be accepted by the appropriate supervising department” of the BSP until Sept. 30, 2020.
It added that the LTNCTDs “issued in accordance with this section shall remain valid and negotiable until their maturity dates without prejudice to the right of the issuing bank to pre-terminate” before the maturity date but subject to conditions for this issuance.
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