Monday, May 20, 2013
Bangko Sentral ng Pilipinas restricts trust banking units' access
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In the latest proceed to fine-tune financial tools, the Bangko Sentral ng Pilipinas is restricting the kinds of funds trust organizations may put in the central bank special deposit account (SDA) beginning the coming year.
Central bank Memorandum No. 2013-021 dated May 17 disallows banks' trust department and trust companies to create deposits in to the SDA window-something produced to mop-up excess liquidity-aside from Unit Investment Trust Funds (UITFs) and fund management activities of trust accounts. UITFs are put funds from traders, that are put into stocks, bonds, money market instruments and other alike assets with a trust banking group's fund manager.
Bangko Sentral stated fiduciary business or individuals reaping benefits just one investor, including agency accounts and investment management activities shall no more have access to the facility. These were also told to lower by 30 % all SDA placements sporadic with Memorandum No. 2013-021 by This summer 31. Anywhere exceeding that ceiling ought to be withdrawn by November 30. Banks and trust organizations are expected to submit a study on their own SDA positions on May 31.
The central bank already slashed SDA yields 3 times this season to two percent from rates listed confined over policy rate of 3.5 percent last The month of January. This past year, it prohibited banks from putting funds possessed by their foreign clients in to the SDA window.
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