News in brief October 26, 2016 | mb.com.ph | Philippine News
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News in brief October 26, 2016

P/$ rate closes at P48.34/$1

The peso closed  lower  at P48.34  to the US dollar yesterday at the Philippine Dealing & Exchange Corp. (PDEx) from  P48.19 the previous day.   The weighted average rate depreciated to P48.317 from  P48.294. The total volume amounted to $500.5 million.

 

Local shares slightly lower

Local shares closed slightly lower again yesterday for lack of market-moving developments even as regional stock markets recovered to track overnight gains in Wall Street. The benchmark Philippine Stock Exchange index (PSEi) finished 29.09 points or 0.38 percent lower at 7,780.22. Volume of trading recovered somewhat with 1.91 billion shares valued at P6.54 billion changing hands. However, gainers  topped decliners, 97-82, with 49 issues unchanged.

 

Trust industry resources total P2.8 trillion

The trust industry had total resources of P2.8 trillion as of end-June, up almost 15 percent year-on-year as the Bangko Sentral ng Pilipinas (BSP) pushed for a shift in banks’ asset allocation.  The BSP said the trust sector’s assets is “closer to its P3-trillion level recorded at end-June 2013.” “It is the peak for the five-year review period (end-June 2012 to end-June 2016), prior to the effectivity of Memorandum No. M-2013-021,” the BSP noted. The memorandum constrained the access of trust accounts to the BSP’s special deposit account or SDA facility, allowing only the access for unit investment trust funds to UITF.  “This led to the shift to deposit in banks and investments in financial assets from cash and due from BSP, which boosted the asset expansion,” explained the BSP. In a statement yesterday, the central bank said the local financial system continue to be “sound and stable” in the first half of the year. It was within this period that the BSP approved additional Basel 3 reforms which it said was “aimed at improving banks’ liquidity standards, mitigating systemic risk through the recovery plan on domestic systemically important banks or DSIBs, continuing enhancement in risk management oversight and corporate governance standards and strengthening prudential rules on connected lending and related party transactions.” (LCC)