Byline: LEE C. CHIPONGIAN

The Bangko Sentral ng Pilipinas (BSP) has deferred its decision to reduce the required capital for thrift banks applying for trust functions from P625 million to P325 million.

BSP sources said the Monetary Board wants more review before lowering the

In the meantime the central bank is studying another proposed circular that will expand thrift and rural banks basic trust account services to include guardianship and estate management to tap more of the overseas Filipino workers' market.

"This will help OFWs since the thrift and rural banking sector is closer to OFWs," BSP Governor Amando M. Tetangco Jr. told reporters.

Tetangco said they may soon permit thrift and rural banks to transact basic trust services such as guardianship and estate management for OFWs' account, excluding living trusts. "Trust transactions (however) will not include UIT (unit investment trusts) and mutual funds," the central bank chief clarified. "What we're trying to do is to improve banks' financial services and make it more accessible (to OFWs)," he added.

Tetangco said the central bank Supervision and Examination Sector (SES) is now looking into expanding thrift and rural banks' trust operations. "We're looking into what kind of trust funds they can tap."

OFWs 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 are still unable to tap OFW funds. Depositors use trust accounts to park their money until they decide how they want to invest their funds.

BSP sources said the thrift banking sector has been asking the BSP to expand its activities to get more of the dollar earning overseas workers as new market. The SES has already recommended to the Monetary Board the inclusion of guardianship trust services as one of the trust activities of thrift and rural banks.