Republic of the Philippines

Laguna State Polytechnic University

Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

LSPU Self-Paced Learning Module (SLM)

Course Banking and Financial Institution

Sem/AY Second Semester/2023-2024
Module No. 4
Lesson Title DEPOSIT FUNCTIONS
Week
15-18
Duration
Date May 6 - May 31, 2024
Description This module covers the deposit functions, Philippine
of the Deposit Insurance Corporation and bank reserves.
Lesson

Learning Outcomes

Intended Students should be able to meet the following intended

Learning learning outcomes:
Outcomes  Have deeper knowledge about Philippine
Deposit Insurance Corporation.
Targets/ At the end of the lesson, students should be able to:
Objectives  Know the functions of deposits and bank
reserves.
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Student Learning Strategies

Online Activities A. Online Discussion via Google Meet

(Synchronous/ You will be directed to attend in a One Hour
Asynchronous) class discussion on the nature and types of
educational technologies. To have access to
the Online Discussion, refer to this link:
https://meet.google.com/ojk-hvpg-nou
The online discussion will happen on May 6 -
May 31, 2024, from 1:00 pm - 2:30 pm.
(For further instructions, refer to your Google
Classroom and see the schedule of activities
for this module)
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Lesson 8:
DEPOSIT FUNCTION

Deposits Defined
- Represented by money or representative money entrusted to banks for
safekeeping.
- The keeping of valuables such as jewelry and other important documents.
- Deposits are money borrowed and makes a bank a debtor.
- Deposits are liabilities of the bank, failure on its part to meet the depositors
demand will give the depositor’s right of recourse against the bank.
- Section 58 of the New Central Bank Law of 2000 (7653) which states that
the term “demand deposits” means all those liabilities of the BSP and of other banks
which are denominated in the Philippine currency and are subject to payment in legal
tender upon demand by presentation of checks.

Types of Deposits
1. Demand Deposits – are those which are withdrawn upon the presentation of
checks during banking hours. This type of deposit does not receive interest in
modern times.

2. Time deposits – are those which can be withdrawn after a certain period of time
or at a designated maturity. The depositors place their excess funds as rime deposits
for varied purposes. For this reason, this type of deposits is further subdivided into
the following:
a. Time certificate of deposits – this is evidenced by a certificate to the effect
that the deposit can only be withdrawn at maturity or after due notice of withdrawal,
usually thirty days, and upon presentation and surrender of the instrument.
b. Special time deposits- this type is evidenced by a written contract to the
effect that neither all nor part may be withdrawn before the maturity date or at least
upon due notice of at least thirty days.
c. Savings deposit – are evidenced by a passbook and can be withdrawn only
upon due notice of at least thirty days or depending upon the individual bank’s
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
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policy .These deposit may be withdrawn on demand provided the bank is in position
to meet the demand of the depositor.

3. Direct or primary deposits – are those which are made “over the counter” when
the depositor himself brings his money and/or checks and other near cash items to
the bank and hands them to the teller. Sometimes, the depositor may send his
representative to deposit for him. For e-bankers, depositors can deposit through
ATM’s after they have registered personally at the bank.

4. Derivative deposits – are created from the proceeds of loans. The borrower
enters into an arrangement that the bank places the loan proceeds under a current
account from which he can draw checks eventually. The derivative deposits increase
the volume of money because they represent new money created by the bank out of
proceeds of the loans.

Kinds of Depositors
The deposits may come from either individuals or businesses and from the
government and its instrumentalities and political subdivision. When funds are
deposited by individuals or businesses, these are known as individual deposits or
business accounts. If the government is the depositor, they are termed government
deposits.
The bank may also deposit money with other banks on reciprocal basis.
These are classified as inter-bank deposits. The banks are known as correspondents.
Such deposits provide for the exchange of funds between banks for varied purposes.
The deposits made by these depositors may be either demand or time pin
conformity with the method of withdrawal and according to the reason of the deposit
in keeping his funds in the bank. They may also consist of primary or direct deposits
or derived from proceeds of loans.

Motives of Depositors
1. Safety – the depositors place their excess funds in the bank because they are
aware that modern banks have fireproof and burglarproof safes and vaults to keep
money in.
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Province of Laguna
ISO 9001:2015 Certified
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2. Convenience- when the depositor is prompted by the convenience offered
through depositing, he opens a current account which is serviced by the used of
checks. Thus, he could pay his bills in exact amounts, he could carry large amount of
money safely and portably, he could use his canceled checks as a receipt, and he
could issue a stop payment order if he draws the check erroneously or loses the
same.

3. Earnings or Income – A person places his money as time deposits if he is after

earnings or income. Only time deposits of varied types earn interest. Service charges
are also nominal if he has pay at all.

4. Accommodation–Business deposit their money because of the special favors

they want from banks. Lines of credit may be accorded to them upon proper
arrangements. They could also deal in trade by having the bank as guarantor through
the issuance of letters of credit.

The Deposit Function

All the officials of the bank down to the entry-level employee perform the
deposit function in the sense that they indirectly contribute to the satisfaction of the
customer-depositor. Directly, however, the teller system employed by banks performs
the operations connected with the receipt of deposits and other allied activities.
The bank if relatively small sized, may employ a single teller system where
one teller performs both the receiving of deposits and the paying out of checks and
other instrument exchanged for cash. Each of the tellers assigned to specific jobs
shall, therefore, have their own responsibilities and duties.
Modern banks have acquired many new methods to improve service as well
as mechanized devices to step up the bank’s multifarious activities. Banks employ
several tellers in order to give maximum service benefits to their customers. Also,
teller functions are done through electronic devices such as ATM’s, phones, mobile
and the internet.
To a bank, the paying teller has a great amount of responsibility because his
negligence may lead to losses on the bank’s part. However, the teller who performs
the first step in the deposit function is the receiving teller; for it is he who accepts
deposits for and in behalf of the bank.
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Province of Laguna
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Receiving Teller
 The receiving teller receives and verifies deposit items and deposit slip, gives
proper receipt for the deposit made, distributes the items deposited, and finally
checks and proves the day’s work.
 When a customer-depositor approaches the receiving teller, he hands the duly
accomplished deposit slip indicating there in the cash and other instruments
presenting cash in some detail.
 Upon receipt, the teller examines the deposit slip to ascertain, among other
things. He also sees the detailed description of the credit instruments are in
order. Then he segregates the currency into the different denominations in the
compartments for this purpose in the drawer. He examines closely the credit
instruments for any defects and if he finds none, marks them non-negotiable.
After the verification, he places the duplicate of the deposit ticket into the
machine to acknowledge receipt of the deposit indicated passbook.
 At the end of the day, the teller sorts out all the items deposited comprising of
cash, checks, and other credit instruments ready for distribution to the proper
departments. As the teller performs the other functions, he fills in the proof sheet
indicating the deposits received and at the end of the day, he merely goes over
the same to see for errors.
 In the receipt of the item deposited, the receiving teller exercises due care and
diligence in examining the cash and the credit instruments so that he may be
relieved of the responsibilities attached to his duties. In regard to the currency,
the teller is responsible for:
a. Errors in counting the money deposited.
b. Presence of mutilated or counterfeit money.

For the credit instrument that the teller receives for deposits, he has to
be careful in order to avoid responsibilities in connection with:
1. Postdated checks – checks which are dated after the date of deposit are known
as post-dated checks. The teller should not receive such checks for deposit as he
cannot be sure whether they shall be honored.
2. Stale checks – are those are dated very much earlier, say about a month, from
the date of deposit.
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ISO 9001:2015 Certified
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3. Material alterations – may be on the date, the amount (that is, the amount in
words do not tally with the amount in figures), the payee. The teller must see to it that
any changes made on the face of the instrument are properly initialed by the drawer.
4. Wrongly endorsed instruments – In case the instrument is not endorsed
according to the name appearing on its face, the teller should require the depositor to
correct the wrong endorsement. The teller should make the depositor correct the
endorsement by making the endorser sign his regular signature with the middle initial.
This will ensure the identity of the endorser beyond reasonable doubt, and also his
corresponding liability.

For both currency and credit instruments, the teller is responsible for:
1. Carelessness in adding deposit slips – this refer to proof sheets rather than the
individual deposit slip. It may be that the teller is not very careful in adding so that the
amount of deposits may not tally with the actual currency and credit instruments.
2. Carelessness in designating the account to be credited – it may happen that
there are several depositors with identical names. The teller must see to it that the
right person is duly credited for the deposit. Careless crediting of proper accounts
may eventually lead to bank embarrassment or even loss. The teller should make it a
point to check the account number.

Deposit Slips (Tickets) and deposits Items

The deposit function entails the distribution of the deposit slips and the
deposit items. Such function is performed by the receiving teller. The distribution is
handled physically as follows:
1. Deposit Slips – are the forms filled in by the depositor when he makes a deposit.
2. Deposit Items – comprises of cash and credit instruments or other items and are
distributed as follows

The Paying Teller

Also is the one who pays out cash in exchange for checks and other
instruments. Attached to his duties, he examines the items exchanged for cash in
relation to:
a. The date of the check- he makes sure that the check is neither post-dated
nor stale. If post-dated he must not pay, if stale he should likewise not pay but
 Republic of the Philippines
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Province of Laguna
ISO 9001:2015 Certified
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request the person presenting it to refer the same to the drawer of the check. He also
checks the regularity of the date of the check.
b. Wrong endorsement- the receiving teller must be sure that the
endorsement is correctly effected at the back of the instrument.
c. Material Alteration- this refers to the erasures or change in the date, the
payee, or the amount in words and figures.
d. Forgery- this is the concern of the paying teller as he access to the
depositor’s specimen signature before payment.
e. Crossed check – are of two kinds, either crossed specially or generally.
The paying teller should scrutinize the check to determine the extent of the bank’s
commitment on such checks.
f. Stop-payment order – when a check is lost or for any other reason the
owner wishes to withhold its payment, the drawer requests the bank to stop its
payment, the bank provides a signal to indicate “Stop Payment Order”.
g. Insufficient funds – the paying teller must also determine whether or not
the drawer of the check has sufficient funds to cover the same.
h. Erroneous payment– A paying teller should count the money to be paid at
least twice. For he may overpay or underpay.
i. Supply of cash – a paying teller, through constantly doing the same work,
should be in a position to know how much gets from the cashier to meet
requirements.

Current versus Savings Account

There are some significant differences which the tellers must be aware of and
which the depositor must know in order to keep his account with the bank. Such
distinctions will be in the initial deposit, the service fees, the penalty for issuance of
bouncing checks, the age of depositor, the minimum balances for purposes of
interest payments or imposition of service charges and others.
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Lesson 9:
PHILIPPINE DEPOSIT INSURANCE CORPORATION
(PDIC)

Role of PDIC
 It is the 2nd pillar of support to the Philippine banking industry.
 It provides the adequate depositor protection and education, and the
immediate processing and settlement of depositors claims.
 An attached agency of Department of finance wherein it is a government
corporation created by virtue of R.A. 3691 for the purpose of insuring deposits in
banks that are entitled to the benefit of insurance.
 Includes receivership and liquidation as its additional important functions.
 The PDIC draws upon its net insurance reserves or consolidated resources in
the carrying out of its operation.
 It extends insurance coverage to 967 member banks, composed of 52
commercial banks, 116 thrift banks, and 799 rural banks.

Board of Directors: Composition and Authority

The following constitute the membership of the board of directors:
1. The Secretary of Finance, who is ex-officio chairman of the board without
compensation.
2. The governor of the Bangko Sentral, who is an ex-officio member of the
board without compensation.
3. The president of the corporation, who is appointed by the president of the
Philippines from either the government or private sector to serve on full-time basis for
a term of six (6) years. The president also serves as vice chairman of the board.
4. Two (2) members from the private sector are appointed for a term of six (6)
years without reappointment by the president of the Philippines.
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The Board of Directors shall have the authority:

1. To prepare and issue rules and regulations it considers necessary for the
effective discharge of its responsibilities.
2. To direct the management, operations, and administration of the
corporation.
3. To appoint, establish the rank, fix the remuneration, and remove any officer
or employee of the Corporation for cause, subject to Civil Service and pertinent
compensation laws
4. To authorize such expenditures by the corporation as are in the interest of
the effective administration and operation of the Corporation.

President: Powers and Duties

1. To prepare the agenda for the meeting of the board and to submit for the
consideration of the board the policies and measures.
2. To execute and administer the policies and measures approved by the board.
3. To direct ad supervise the operations and internal administration of the corporation
in accordance with the policies established by the board.
4. To represent the Corporation, upon prior authority of the board.
5. To authorize, with his signature, upon prior authority of the board, contracts
entered into by the corporation, notes and securities issued by the corporation, notes
and the annual reports, balance sheets, profits and loss statement correspondence
and other documents of the corporation.
6. To represent the corporation, either personally or through counsel, in all legal
proceedings or actions.
7. To delegate, with prior approval of the board of directors, his power to represent
the corporation to other officers of the corporation.
8. To exercise such powers as may be vested in him by the board.

Sources of Funds
 The principal sources of funds are the capital infusion of the government in
the form of a Permanent Insurance Fund (PIF) which is initially capitalized at P5
million, incomes from insurance premium assessments on member banks, and
investments in government securities.
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 Investments increased as debts were reduced with the strengthening of
capital and greater collection in premiums.

Termination and Reinstatement of Insured Status of Banks

Pursuant to the provision in R.A 3591 as amended and in relation to the PDIC
Amendment Rules and Regulations, PDIC issued the ff. guidelines on the termination
and reinstatement of insured status of banks due to non-payment of assessment:
1. PDIC shall terminate the insured status of a bank upon its continued failure
or refusal to pay the assessment, due semi-annually, computed by multiplying the
assessment rate as determined by the PDIC Board of Directors and the banks
liability for deposits.
2. First demand letter shall be sent to banks through registered mail. Interest
charges at the legal rate of 12% per annum, reckoned from due date/s, shall be
imposed upon these banks.
3. Failure to comply within 30 days after receipt of the first demand letter shall
constitute willful failure or refusal by the bank to file the required certified statement
and pay the corresponding assessment and interest charges. Then PDIC shall send
the second demand letter through registered mail.
4. Termination proceedings of the banks insured status shall start (30) days
after receipt by the bank of the PDIC’s second demand letter.
5. The third demand letter shall be sent to the bank through registered mail
and final demand letter , the PDIC shall terminate the bank’s insured status which
shall be effective after lapse of (30) days.
6. The order of termination shall be final and executory until set aside,
modified or suspended by the PDIC Board of Directors.
7. The corporation shall published the order of termination of the insured
status in a newspaper and/or local circulation for (3) consecutive days. Upon receipt
of the order of termination from corporation, the bank shall give written notice to such
termination to each of the depositors. Failure by the bank to do so shall be subject to
a fine of not exceeding (P1,000) per day or render criminally liable for violation which
is punishable by a fine not more than (P20,000) and by imprisonment of not more
than (5) years.
8. Failure of the bank for whatever reason to give written notice to the
depositors shall not in any way affect the validity and effectivity of the order of
termination of insured status against the depositors of the bank.
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9. The insured deposits of each depositor in the bank as of the effective date
of termination, less all subsequent withdrawals/ debit adjustments from any deposits
of such depositor, shall continue to be insured for a period of (90)days from the date
of such termination.
10. The bank whose insured status has been terminated shall not advertise
nor hold itself out as having insured deposits unless, in the same connection, the
bank shall state with equal prominence that such additions to the insured deposit and
new deposits made after such termination are not so insured.
11. A bank whose insured status has been terminated ma request for the
reinstatement of its insured status by means of a written application filed with the
Corporation. The PDIC Board of Directors may approve such application based on
the recommendation that: (a) the cause or causes for termination of insured status
has/have been corrected, and (b) that the bank may continue to operate with
insurance cover to its depositors, creditors, and the general public, thereby not
exposing the Deposit Insurance Fund to undue risk.

Payment of Insurance Deposit Claims

The maximum deposit insurance coverage is P500,000 per depositor. All
deposit accounts by a depositor in a closed bank maintained in the same right and
capacity shall be added together. The amount in excess of P100,000 coverage, if the
closed bank is not rehabilitated or taken over by another bank, can still be claimed
upon final liquidation of the remaining assets of the closed bank. The claim may be
filed with the liquidator of the closed bank after filing the claim for insured deposits.
 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
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Lesson 10:
BANK RESERVES

Primary Reserves
 Consist mainly of highly liquid assets of the bank and its main objective is to
maintain the bank liquidity and solvency.
 The bank keeps primary reserve in the form of non-earning assets.
 A bank may keep primary reserve in the form of cash in vaults, deposits with the
central bank (legal reserve); deposit with other banks, exchanges or the clearing
house and checks for collection. These items may fall under the classification of
excess reserves, working reserves, or legal reserves.
 The banks do their best to keep the right amount of primary reserves, not too
much to deny the bank income from investment neither too little to jeopardize the
bank’s position in the community.

Legal Reserves
 Form part and parcel of the primary reserve. Sometimes alluded to as required
uniformly and without discrimination on all banks.
 The BSP, being the monetary authority, has jurisdiction over all banks and,
therefore requires the setting up of legal reserves. Such reserves are kept at the
banks vault.
 This reserve is usually a percentage of demand and time deposit, which may
either, be in cash or a combination of cash and highly marketable securities.
 The function of legal reserve is to meet the depositors demand for cash.
 The bank can only draw on these reserves from the BSP in cases of extreme
need to meet depositor’s withdrawals.

Republic Act 7653 (New Central Bank Act of 1993) as embodied in Chapter IV,
Article VII, entitled “Bank Reserves:”
Sec. 94 Reserve Requirements- in order to control the volume of money
created by the credit operations of the banking system, all banks operating in the
Philippine shall be required to maintain reserves against their deposit liabilities.
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ISO 9001:2015 Certified
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Sec.95 Definition of Deposit Substitute – the term deposit substitute is
defined as an alternative form of obtaining funds from public, other than deposits,
through the issuance, endorsement, or acceptance of debt instruments for the
borrowers own account, for the purpose of re-lending or purchasing of receivables
and other obligations.
Sec.96 Required Reserve Against Peso Deposit – the Monetary Board
may fix and, when it deems necessary, alter the minimum reserve ratios to peso
deposits, as well as to deposit substitute, which each bank and/or quasi-bank may
maintain, and such ratio shall be applied uniformly to all banks of the same category
as well as quasi-banks.
Sec. 97 Required Against Foreign Currency Deposits – the Monetary
Board is similarly authorized to prescribe and modify the minimum reserve ratios
applicable to deposits denominated in foreign currencies.
Sec. 98 Reserve Against Unused Balances of Overdraft Lines – in order
to facilitate Bangko Sentral control over the volume of bank credit , the Monetary
Board may established minimum reserve requirements for unused balances of
overdraft lines.
Sec. 99 Increase in Reserve Requirements – the increase shall be made in
gradual manner and shall not exceed four-percentage points in any (30) day period.
Banks and other financial institutions shall be notified reasonably in advance of the
date on which such increase is to become effective.
Sec. 100 Computation on Reserves - The reserve position of each bank or
quasi-bank shall be calculated daily on the basis of the amount, at the close of
business for the day, of the institutions reserve and the amount of its liability
accounts against which reserves are required to be maintained.
Sec. 101 Reserve Deficiencies - whenever the reserve position of any bank
or quasi-bank, computed in the manner specified in the preceding section of this Act,
below the required requirement minimum, the bank or quasi-bank shall pay the BSP
one-tenth percent (1/10 of 1%) per day on the amount of the deficiency on the
prevailing 90 day treasury bill rate plus 3 percentage points whichever is higher.
Sec. 102 Inter-bank Settlement – the BSP shall established facilities for
inter-bank clearing under such rules and regulations as the Monetary Board may
prescribe. Provided, that the BSP may charge administrative and other fees for the
maintenance of such facilities.
Sec. 103 Exemption from Attachment and Other Purpose – Deposits
maintained by banks with the BSP as part of their reserve requirements shall be
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exempted from attachment, garnishments, or any other order or process of any court,
government agency or any other administrative body issued to satisfy the claim of a
party other than the government, or its political subdivisions or instrumentalities.

Working Reserves
 Another form of primary reserves, composed of vault cash in excess of legal
requirements and balances with other banks which are used to meet the
depositors demand.
 The amount of working reserves varies in size depending upon several factors.

Excess Reserves
 Are those over and above the legal reserve requirements. It could also be the
amount in excess of working reserves.
 Whatever is above the required working reserves may be deemed as excess
reserves.

Factors Affecting Size of Primary Reserve Requirements

1. The number of depositor and the diversity of their business interest.
2. The confidence of the public on the bank.
3. The nature of a bank’s deposits.
4. The percentage of legal reserve requirements.
5. The percentage and quality of the secondary reserve.
6. The demand for loans.
7. Habits and customs of the community
8. Other factors.

Secondary Reserves
 Often alluded to as a bank’s next line of defense
 Composed of earning assets which are easily converted to cash with the least
delay and without loss.
 First major role of this reserve is to replenish the needs of the primary reserve.
 If the cash is not needed, the next function is to keep a maximum percentage of
the bank’s funds invested in earning asset.
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Quality of asset:
 The asset must be of high quality, it must be in short duration and it must be
marketable.

Assets in the Secondary reserve:

 Short-term government securities
 Banker’s Acceptances
 Commercial papers
 Loans of a short-term and self-liquidating nature.

Size of Secondary Reserve

 Size of secondary reserve also matters of “rule of a thumb” on the part of the
bank.
 Due to the close link between the primary and secondary reserve, certain factors
influence the size of the latter. Both are used to make sure that the bank meets
the demand of the depositor.

Investment Reserve
 Is an economic rather than an accounting term as in the case of primary and
secondary reserves.
 Assets which do not qualify for the first two reserves could conveniently be
deemed as eligible for the investment reserve.

Assets Eligible for Investment Reserve

 The assets comprising the investment reserves are not as liquid as those in the
primary reserve nor as easily converted into cash as those of the secondary
reserve.
 They are of longer maturities which are spaced at even intervals to allow for a
continuous intake of reinvestment of funds.
 The purpose of having such reserve is to earn and to be able to meet any
unanticipated major losses resulting from bank failure.
 Stock and bonds are popular assets in the investment reserve.
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BSP’s Current Policies on Reserve Requirements

1. The Monetary Board, in Circular No. 319 (resolution no.63 dated January 17,
2002) as amended by MB resolution No. 163 dated 31, January 2002) approved the
reduction in the liquidity reserve requirement against peso demand savings, time
deposits and deposit substitutes liabilities of Universal banks and Commercial banks,
and Non-bank financial Intermediaries with the quasi-banking functions, by 2
percentage points from 9% to 7%. The regular reserve requirement is at 9%.

2. Reserve Against Peso-Denominated Common Trust funds

- Pursuant to memorandum to All commercial banks and non-bank financial
intermediaries performing trust, other fiduciary business and investment
management activities dated 15 February 2002:
- The monetary Board approved the reduction in the liquidity reserve
requirement against peso denominated common trust funds (CTF) and trust and
other fiduciary activities (TOFA) – others:
From To
a.) For universal banks and commercial banks 10% 8%
b.) For thrift banks to remain at 4%
c.) For non-bank financial intermediaries
With or without quasi-banking functions 10% 8%

3. Reserve Against trust and Other Fiduciary Accounts (TOFA) – Others

- The manual of regulations for the Non-bank financial Institutions, all financial
intermediaries authorized to engage in trust and other fiduciary business shall
maintain regular reserves against Trust and Other Fiduciary accounts (TOFA) ,
others except –
a. accounts held under administration,
b. bonds issues under deed of trust or mortgage,
c. custodian and safekeeping ,
d. depository/reorganization .
e. employees benefit plans under trust,
f. escrow,
g. personal trust (testamentary or living trust)
h. executorship,
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i. guardianship,
j. life insurance trust,
k. pre-need plans (institutional/individual).

The regular reserve against TOFA – Others shall be maintained as follows:

a.) For universal banks and commercial banks 6%
b.) For thrift banks 5%
c.) For non-bank financial intermediaries
With or without quasi-banking functions 6%
d.) For rural banks 4%

4. Form and Compensation

- Deposits maintained by financial intermediaries authorized to engage in trust and
other fiduciary business with the BSP up to forty percent (40%) of the regular reserve
against peso-denominated common trust funds as well as the regular reserves for
TOFA- Others shall be paid interest at 4% per annum based on the average daily
balance of said deposits. to be credited quarterly.
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Laguna State Polytechnic University
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ISO 9001:2015 Certified
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Learning Resource
 Almina-Mutya, Ruby (2007). Introduction to Philippine Money, Credit, and
Banking. 2 nd National Bookstore, Mandaluyong City
 Cloudhey, Moorad (2011). An Introduction to Banking: Liquidity Risk and Asset-
Liability Management, John Wiley and Sons. LTD, West Sussex United Kingdom
 Croushore, Dean (2012). Money and Banking. Cengage Learning Asia Phil. Ltd.