BSP Lowers Capital Requirements; Trust License for Thrift Banks Eased

Manila Bulletin, March 12, 2007 | Go to article overview
Save to active project

BSP Lowers Capital Requirements; Trust License for Thrift Banks Eased


Byline: LEE C. CHIPONGIAN

The required capital for thrift banks applying for trust functions will be reduced from P625 million to P325 million.

Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. told thrift bankers that a circular implementing the new rules will be issued soon.

Tetangco said to reporters later that thrift banks had earlier proposed the lowering of capital to engage in the trust business.

Chamber of Thrift Banks (CTB) President Amb. Alfredo Yao said they are still waiting for the new circular. "We were told that BSP is preparing the circular but the Governor (Tetangco) said the capital requirement has been reduced."

Yao said thrift banks located outside of Metro Manila will have lower capital requirements. "This would help us ... normally OFWs (overseas Filipino workers) put their money in trust accounts for house construction or their children's schooling." At the moment because of the high capital limits, many thrift banks in the provinces were still unable to tap OFW funds. Trust accounts are usually used to park a client's money until they decide how they want to invest their money.

In the meantime the BSP will also soon permit thrift banks to invest in long-term foreign currency investment instruments such as in sovereign debt or higher-yielding ROPs.

Tetangco said the BSP will consider proposals to invest in long-term debt securities and to ease limits imposed on thrift banks with foreign currency deposit units.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

BSP Lowers Capital Requirements; Trust License for Thrift Banks Eased
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?