- Details
- Category: Banking & Finance
- Published on Monday, 26 August 2013 19:26
- Written by Bianca Cuaresma
FUNDS parked at the special deposit account (SDA) window of the Bangko Sentral ng Pilipinas (BSP) stood at P1.77 trillion on the week ending August 2 or already past the end-July deadline for trust entities to move out the facility.
Latest data from the central bank showed that cash in the special facility increased on a weekly basis, despite the pullout mandate deadline set by the BSP on July 31. On July 26, or five days before the phase-out deadline, the total SDA deposits hit P1.754 trillion. But this went up again by P 18 billion on the week ending August 2.
Since the BSP issued a memorandum banning investment management accounts (IMAs) and ordering a 30-percent withdrawal of these accounts by the end of July, SDA deposits fell by P108 billion. SDA level stood at P1.88 trillion on May 24, the week when the BSP released the new guidelines on SDA deposits.
Bank of the Philippine Islands (BPI) Executive Vice President Maria Theresa Marcial-Javier earlier said the decline in the SDA deposits would be more significant later this year as the BSP ordered a complete pullout of IMAs by the end of November.
According to the BSP circular, only pooled accounts of banks are allowed to be parked at the SDA facility. BSP officials also said the retail accounts removed from the high-yielding and relatively safe facility were seen migrating to time deposits instead.
Javier also said SDA deposits might also shift to the short-term money-markets as funds that make the placements “are very conservative.”
The BSP said the stricter guidelines in the facility are part of an effort to push the funds out of the banks’ vaults and hopefully invested in the more productive sectors of the economy.
The central bank earlier hinted of retaining the interest rates and other guidelines related to the SDA facility as it continues to monitor fund shifts in the economy.
Bianca Cuaresma
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