411 AUTHORITY TO PERFORM TRUST AND OTHER FIDUCIARY BUSINESS
a. Certified true copy of the resolution of the institution’s board of directors authorizing the application; and
b. A certification signed by the president or the officer of equivalent rank that the institution has complied with all conditions/prerequisites for the grant of authority to perform trust and other fiduciary business.
a. The applicant has been duly licensed or incorporated as a bank or created as such by special law or charter;
b. The articles of incorporation or governing charter of the institution shall include among its powers or purposes, acting as trustee or administering any trust or holding property in trust or on deposit for the use, or in behalf of others;
c. The by-laws of the institution shall include among other things, provisions on the following;
(1) The organization plan or structure of the department, office or unit which shall conduct the trust and other fiduciary business of the institution;
(2) The creation of a trust committee, the appointment of a trust officer and subordinate officers of the trust department; and
(3) A clear definition of the duties and responsibilities as well as the line and staff functional relationships of the various units, officers and staff within the organization;
d. The bank’s operation during the preceding calendar year and for the period immediately preceding the date of application has been profitable;
e. The bank is well capitalized whose risk-based capital adequacy ratio is not lower than twelve percent (12%) at the time of filing the application;
f. It has not incurred net weekly reserve deficiencies during the eight (8)-week period immediately preceding the date of application;
g. It has generally complied with banking laws, rules and regulations, orders or instructions of the Monetary Board and/or Bangko Sentral Management in the last two (2) preceding examinations prior to the date of application, particularly on the following:
(1) election of at least two (2) independent directors;
(2) attendance by every member of the board of directors in a special seminar for board of directors conducted or accredited by the Bangko Sentral;
(3) the ceilings on credit accommodations to DOSRI;
(4) liquidity floor requirements for government deposits;
(5) single borrower’s limit; and
(6) investment in bank premises and other fixed assets;
h. It maintains adequate provisions for probable losses commensurate to the quality of its asset portfolio but not lower than the required allowance for credit losses as determined by the Bangko Sentral;
i. It does not have float items outstanding for more than sixty (60) calendar days in the “Due From/To Head Office/Branches/Other Offices” accounts and the “Due from Bangko Sentral” account exceeding one percent (1%) of the total resources as of date of application;
j. It has no past due obligations with the Bangko Sentral or with any government financial institution;
k. It has established a risk management system appropriate to its operations characterized by clear delineation of responsibility for risk management, adequate risk measurement systems, appropriately structured risk limits, effective internal controls and complete, timely and efficient risk reporting system;
l. It has a CAMELS composite rating of at least “3” in the last regular examination with management rating of not lower than “3”; and
m. It has neither unpaid assessment due nor past due obligations with the PDIC.
a. Government securities acceptable to the Bangko Sentral amounting to P500,000 as minimum basic security deposit for the faithful performance of trust and other fiduciary duties required under Sec. 417;
b. Organization chart of the trust department which shall carry out the trust and other fiduciary business of the bank; and
c. Names and positions of individuals designated as chairman and members of the trust committee, trust officer and other subordinate officers of the trust department with their respective bio-data and statement of duties and responsibilities.