MORNBFI Vol. 1 - Planters Development Bank

§§ 4405Q.6 - 4406Q.108.12.31Department at one-half percent (1/2%)below the prevailing market rate for anequivalent term and volume and subject toBSP’s firm commitment to buy back at anytime at prevailing market rates. Suchreserves in the form of short-term marketyieldinggovernment securities shall be inaddition to other forms of eligible reservessuch as cash in vault or on deposit withthe BSP.All purchases of said governmentsecurities shall be under the RoSS systemof the BTr. Transactions covering saidsecurities shall be recorded in accordancewith the guidelines in Appendix Q-21.§ 4405Q.7 Computation of reserveposition. An institution authorized toengage in trust and other fiduciary businessshall calculate daily the required andavailable reserves on the value per booksof its peso-denominated CTFs and suchother managed peso funds, as well as onTOFA-Others, based on the seven-dayweek, starting Friday and ending Thursdayincluding Saturdays, Sundays, holidays,non-business days and days when there isno clearing: Provided, That with referenceto holidays, non-business days and dayswhere there is no clearing, the reserveposition at the close of business dayimmediately preceding such holidays,non-business days and days where thereis no clearing, shall apply thereon. For thepurpose of computing reserve position, theprincipal office in the Philippines and allbranches and agencies located therein shallbe treated as a single unit.The required reserves in the currentperiod (reference reserve week) shall becomputed based on the correspondinglevels of peso-denominated CTFs and suchother managed peso funds, as well asTOFA-Others of the prior week.For purposes of computing therequired and available statutory andliquidity reserves for peso-denominatedCTFs and such other managed peso funds,as well as TOFA-Others, the term valueper books shall refer to the total volume ofCTFs, other managed peso funds, as wellas TOFA-Others less booked “Allowancefor Probable Losses”.(As amended by Circular No. 535 dated 04 July 2006)§ 4405Q.8 Reserve deficiencies;sanctions. The provisions of Section 4257Qshall govern the computation of reservedeficiencies for peso-denominated CTFs andsuch other managed peso funds, as well asfor TOFA-Others, of institutions authorizedto engage in trust and other fiduciarybusiness, including the sanctions providedin said Subsection.§ 4405Q.9 Report of complianceEvery institution shall make a weeklyreport to the BSP of its daily required andavailable reserves on peso-denominatedCTFs and such other managed pesofunds, as well as on TOFA-Others, to besubmitted not later than the close of thethird business day following thereference week.Sec. 4406Q Organization andManagement§ 4406Q.1 Organization. An institutionauthorized to engage in trust and otherfiduciary business shall, pursuant to Subsec.4404Q.1, include in its by-laws, provisionson the organization plan or structure of thedepartment, office or unit which shallconduct such business. The by-laws shallalso include provisions on the creation of atrust committee, the appointment of a trustofficer and other subordinate officers and aclear definition of their duties andresponsibilities as well as their line and stafffunctional relationships within theorganization which shall be in accordancewith the following guidelines:a. Trust and other fiduciary businessof an institution shall be carried out througha trust department which shall beManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart IV - Page 9