BSP MEMORANDUM, October 06, 2000
TRUST RULES
for all financial intermediaries, the Rules and Regulations on Trust,
Other Fiduciary Business and Investment Management Activities (Trust
Rules) are amended as follows:
SECTION 1. Reserves Against Peso-Denominated Common Trust Funds. —
The liquidity reserves against peso-denominated common trust funds
and such other peso funds which partake the nature of collective
investment of peso-denominated common trust funds shall be increased as follows:
|
|
From |
To |
|
a) For universal banks and commercial banks |
4% |
6% |
|
b) For thrift banks |
4% |
6% |
|
c) For non-bank financial intermediaries with or without quasi-banking functions |
4% |
6% |
The liquidity reserve may be held in the form of short-term
market-yielding government securities purchased directly from the Bangko
Sentral ng Pilipinas (BSP) — Treasury Department.In addition to the liquidity reserves, the regular reserves
against peso-denominated common trust funds and such other managed peso
funds which partake the nature of collective investment of
peso-denominated common trust funds of all financial intermediaries
authorized to engage in trust and other fiduciary business shall be
maintained as follows:
|
a) For universal banks and commercial banks |
6% |
|
b) For thrift banks |
5% |
|
c) For non-bank financial intermediaries with or without quasi-banking functions |
6% |
|
d) For rural banks |
4% |
SECTION 2. Reserves Against Trust and Other Fiduciary Accounts (TOFA)-Others. —
In addition to the basic security deposit required under Subsection
X405. 1 of the Manual of Regulations for Banks and Subsection _405.1 of
Book IV of the Manual of Regulations for Banks and Other Financial
Intermediaries, all financial intermediaries authorized to engage in
trust and other fiduciary business shall maintain regular reserves
against Trust and Other Fiduciary Accounts (TOFA)-Others, except (a)
accounts held under administration; (b) bond issues under deed of trust
or mortgage; (c) custodianship and safekeeping; (d)
depository/reorganization; (e) employees’ benefit plans under trust; (f)
escrow; (g) personal trust (testamentary or living trust); (h)
executorship; (i) guardianship; (j) life insurance trust; and (k)
pre-need plans (institutional/individual).The regular reserves against TOFA-Others shall be maintained as follows:
|
a) For universal banks and commercial banks |
6% |
|
b) For thrift banks |
5% |
|
c) For non-bank financial intermediaries with or without quasi-banking functions |
6% |
|
d) For rural banks |
4% |
The liquidity reserve, which is in addition to the regular reserve, shall be increased from four percent (4%) to six percent (6%).
The liquidity reserve may be held in the form of short-term
market-yielding government securities purchased directly from the
BSP-Treasury Department.Provided, that the reserves on trust and other fiduciary accounts (TOFA)-Others shall be provided out of such funds.
SECTION 3. Form and Composition of Reserves. —
Deposits maintained by financial intermediaries authorized to
engage in trust and other fiduciary business with the BSP up to forty
percent (40%) of the regular reserves against peso-denominated common
trust funds as well as the regular reserves for TOFA-Others shall
continue to be paid interest at 4.0% per annum based on the average
daily balance of said deposits, to be credited quarterly.Deposits maintained by rural banks authorized to engage in trust
and other fiduciary business with the BSP up to forty percent (40%) of
the regular reserves against peso-denominated common trust funds as well
as the regular reserves for TOFA-Others shall continue to be retained
at 4.0% per annum based on the average daily balance of said deposits to
be credited quarterly.This Memorandum shall take effect on 13 October 2000. The basis
for the computation shall be the relevant levels of investment and trust
accounts subject to liquidity reserves, reported starting 6 October
2000.
FOR THE MONETARY BOARD:
Adopted: 6 Oct 2000
(SGD.) ARMANDO L. SURATOS
Officer-in-Charge