MORNBFI Vol. 1 - Planters Development Bank

§ 4404Q.305.12.31property in trust or on deposit for the use,or in behalf of others;d. The by-laws of the institution shallinclude, among other things, provisions onthe following:(1) The organization plan or structureof the department, office, or unit whichshall conduct the trust and other fiduciarybusiness;(2) The creation of a trust committee, theappointment of a trust officer and subordinateofficers of the trust department; and(3) A clear definition of the duties andresponsibilities as well as the line and stafffunctional relationships of the various units,officers and staff within the organization.e. Where the applicant is authorizedto engage in quasi-banking functions, itshall also meet the following additionalrequirements:(1) Its operations during the yearimmediately preceding the filing of theapplication have been profitable, i.e., itsrate of return on equity is at least tenpercent (10%);(2) It has continuously complied withits net worth-to-risk assets ratio, liquidityfloor and ceilings on DOSRI loans duringthe last six (6) months immediatelypreceding the date of application;(3) It has not incurred net weeklyreserve deficiency against depositsubstitutes during the last six (6) monthsimmediately preceding the date ofapplication;(4) The ratio of its total NPLs to itsgross loan portfolio as of the date of filingof application does not exceed the industryaverage as of the end of the quarterimmediately preceding the date ofapplication;(5) It does not have any past dueobligation with the BSP or with anygovernment or non-government FI;(6) It has not engaged in unsafe andunsound practice/s during the yearimmediately preceding the date of application;(7) It has corrected as of the date ofapplication the violations noted in its latestexamination related to the single borrower’sloan limit and all other ceilings prescribedby the BSP;(8) It does not have float itemsoutstanding for more than sixty (60)calendar days in the “Due From/To HeadOffice/Branches” accounts and the “Duefrom Bangko Sentral” account exceedingone percent (1%) of its total resources asof the end of the month immediatelypreceding the date of application; and(9) It has shown substantialcompliance with other pertinent laws,rules and regulations, policies andinstructions of the BSP and it has not beencited for serious violations or exceptionsaffecting its solvency, liquidity andprofitability.Where the applicant is not authorizedto engage in quasi-banking functions:(i) The adoption of a formula orcriteria for QBs in the determination ofcompliance with the capital-to-riskassets ratio and ceilings on loans toDOSRI; and(ii) The substitution of the reserve andliquidity floor requirements with the cashratio, as follows:(a) Primary reserves to Bills Payable;and(b) Primary and secondary reserves toBills Payable; where primary reservesconsist of cash on hand, cash in vault,COCIs, due from the BSP and due frombanks; and where secondary reservesconsist of BSP supported governmentsecurities, T-Bills and other governmentsecurities.Compliance with the foregoing, as wellas with other requirements under existingregulations, shall be maintained up to thetime the trust license is granted. Anapplicant that fails in this respect shall berequired to show compliance for anothertest period of the same duration.Q RegulationsPart IV - Page 4Manual of Regulations for Non-Bank Financial Institutions