To further increase the liquidity reserve requirement against peso denominated common trust funds (CTF) and trust and other fiduciary activities (TOFA)
MEMORANDUM Series of 2001
To : All Commercial Banks and Non-Bank Financial Intermediaries Performing Trust, Other Fiduciary Business and Investment Management Activities
The Monetary Board in its Resolution No. 1229 dated August 9, 2001, further increased the liquidity reserve requirement against peso denominated common trust funds (CTF) and trust and other fiduciary activities (TOFA) – Others of all universal banks (UBs) and commercial banks (KBs) and non-bank financial intermediaries with trust license by another two (2) percentage points from 10% to 12%. The regular reserve requirements are maintained at 6%.
The liquidity reserve may be held in the form of short-term market-yielding government securities purchased directly from the Bangko Sentral Ng Pilipinas (BSP) – Treasury Department, pursuant to Circular 10 dated December 29, 1993.
This Memorandum shall take effect on August 10, 2001.
FOR THE MONETARY BOARD
RAFAEL B. BUENAVENTURA Governor
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