Amendments to Subsec. _405.6 Form and Composition of Reserves of the Rules and Regulations on Trust, Other Fiduciary Business and Investment Management Activities (Trust Rules)

MEMORANDUM Series of 1998

To: All Banks and Other Financial Intermediaries Performing Trust, Other Fiduciary Business and Investment Management Activities

Pursuant to Monetary Board Resolution No. 749 dated 20 May 1996, the seventh paragraph of Subsec. _405.6 Form and Composition of Reserves of the Rules and Regulations on Trust, Other Fiduciary Business and Investment Management Activities (Trust Rules) is hereby amended as follows:

"Deposits maintained by all financial intermediaries authorized to engage in trust and other fiduciary business with the BSP up to forty percent (40%) of the required reserves against peso-denominated common trust funds (less the percentage allowed to be maintained in the form of short-term market-yielding government securities), as well as the required reserves for TOFA-Others (less the percentage allowed to be maintained in the form of short-term market-yielding government securities), shall be paid interest at four (4%) per annum effective 29 May 1998 based on the average daily balance of said deposits to be credited quarterly."

FOR THE MONETARY BOARD:

GABRIEL C. SINGSON Governor