MANILA -- The Monetary Board approved the amendment to regulations on Trust and Other Fiduciary Account – Others (TOFA-Others) to include Specialized Institutional Accounts under Trust (SIT) among the accounts that are exempt from reserve requirements (RRs), the Bangko Sentral ng Pilipinas (BSP) announced in a statement on Thursday.
Prior to the amendment, these accounts are subject to RRs of 16 percent, 8 percent and 4 percent for universal banks/commercial banks, thrift banks and rural banks, respectively, which affect the earnings potential of the account since these reserves cannot be used for investment, it was explained.
The inclusion of the SIT among the accounts exempted from RRs will benefit the accounts established by institutions, foundations, agencies, whether government or private (e.g., NGOs) registered with the Securities and Exchange Commission or the Cooperative Development Authority, primarily for charitable, religious, educational, athletic, scientific, medical, cultural, specialized lending or developmental project, or such other purposes of similar nature. (PR)
