December 31, 1996
BSP MEMORANDUM
TO : All Banks and Other Financial Intermediaries Performing Trust, Other Fiduciary Business and Investment Management Activities
Pursuant to Monetary Board Resolution No. 1231 dated November 27, 1996, the Rules and Regulations on Trust, Other Fiduciary Business and Investment Management Activities (Trust Rules) are hereby amended as follows:
SECTION 1. Subsection _405.5 is hereby amended to read as follows:
"Subsection _405.5 Reserves Against Peso-Denominated Common Trust Funds and Trust and Other Fiduciary Accounts (TOFA) Others.
1.1 Reserves Against Peso-Denominated Common Trust Funds
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 fifteen percent (15%) to fourteen percent (14%) effective January 3, 1997, and to thirteen percent (13%) effective July 4, 1997. Such phased reduction shall be in the reserves allowed to be held in the form of short-term market-yielding government securities purchased directly from the BSP-Treasury Department.
The required reserves, which shall be in...
