(NAR) VOL. 9 NO. 3 / JULY - SEPTEMBER 1998
The required 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 reduced from seven percent (7%) to five percent (5%).SECTION 2. Item 1.2 of Subsection _405.5 is amended to read as follows:
In addition to the regular reserve requirement, 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 maintained at eight percent (8%). The liquidity reserve may be held in the form of short-term market yielding government securities purchased directly from the BSP-Treasury Department".
In addition to the basic security deposit required under Subsection _405.1, all financial intermediaries authorized to engage in trust and other fiduciary business shall maintain required reserve 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).Provided, that the reserves on trust and other fiduciary accounts (TOFA) — Others shall be provided out of such funds."
The required reserves against TOFA-Others shall be reduced from seven percent (7%) to five percent (5%), while the liquidity reserve, which is in addition to the required reserve, shall be maintained at eight percent (8%) of TOFA-Others. The liquidity reserve may be held in the form of short-term market yielding government securities purchased directly from the BSP-Treasury Department,