MORNBFI Vol. 1 - Planters Development Bank

§§ 4405Q.5 - 4405Q.608.12.31Any defiency in the liquidity reservesshall continue to be in the forms or modesprescribed under existing regulations for thecomposition of required reserves.The reserves on peso-denominatedCTFs and such other managed peso fundsshall be provided out of said funds.b. Reserves against TOFA-Others. Inaddition to the basic security deposit, aninstitution authorized to engage in trust andother fiduciary business shall maintainreserves on TOFA-Others, except accountsheld under (1) Administratorship; (2) BondIssues/Other Obligations Under Deed ofTrust or Mortgage; (3) Custodianship andSafekeeping; (4) Depository andReorganization; (5) Employee BenefitPlans Under Trust; (6) Escrow; (7) PersonalTrust (testementary and living trust);(8) Executorship; (9) Guardianship; (10) LifeInsurance Trust; and (11) Pre-need Plans(institutional/individual).The reserves to be maintained shall beas follows:(i) Regular reserves 6% 1(ii) Liquidity reserves 11% 2The liquidity reserves shall bemaintained in the RDA with the BSP, ormay be in the form of the following:Provided, That it complies with theguidelines shown in Appendix Q-41.(i) Short-term market-yieldinggovernment securities purchased directlyfrom the BSP-TD.(ii) NDC Agri-Agra ERAP Bonds,regardless of maturity; and(iii) PEACe bonds only to the extent ofthe original gross issue proceedsdetermined at the time of the auction, pluscapitalized interest on the underlyingzero-coupon Treasury Notes as and whenthe corresponding interest is earned overthe life of the bonds.Any deficiency in the liquidity reservesshall continue to be in the forms or modesprescribed under existing regulations forthe composition of required reserves.The reserves on TOFA-Others shall beprovided by the institution out of said funds.(As amended by Circular Nos. 551 dated 17 November 2006and 539 dated 09 August 2006)§ 4405Q.6 Composition of reservesa. The provisions of Section 4254Qshall govern the composition of reservesagainst peso-denominated CTFs and suchother managed peso funds as well asTOFA-Others of institutions authorized toengage in trust and other fiduciary business.For purposes of this Subsection, aspecial deposit account shall be maintainedby the institutions with the BSP exclusivelyfor trust reserves which deposits up to fortypercent (40%) of the required reservesagainst peso-denominated CTFs and suchother managed peso funds (less thepercentage allowed to be maintained inthe form of short-term market-yieldinggovernment securities), as well as therequired reserves against TOFA-Others(less the percentage allowed to bemaintained in the form of short-termmarket-yielding government securities),shall be paid interest at four percent (4%)per annum, based on the average dailybalance of said deposits to be creditedquarterly.Likewise, institutions may alsomaintain a special demand depositaccount with local banks exclusively fortrust duties.Effective 1 July 2003, publishedinterest rates that will be applied on BSP’sSpecial Deposit Accounts of QBs shall beinclusive of the ten percent (10%) VAT.b. The portion of reserves that maybe maintained in the form of short-termmarket-yielding government securitiesrefers to government securities shall bepurchased directly from the BSP Treasury1From 6% to 9% regular reserve effective the reserve week starting 7 January 2005 under MAB dated 29 December 2004and from 9% to 10% regular reserve effective the reserve week starting 15 July 2005 under Circular 491 dated 12 July 20052From 10 % to 11% under Circular 491 dated 12 July 2005, effective the reserve week starting 15 July 2005.Q RegulationsPart IV - Page 8Manual of Regulations for Non-Bank Financial Institutions