Listed Citystate Savings Bank will offer the latest in wealth management and dollar-deposit products with the recent release of its trust and foreign currency deposit unit licenses.

“Clients can avail of Citystate’s services in terms of holding, managing and administering their funds, securities and properties for their benefit and advantage,” Citystate Bank president D. Alfred A. Cabangon said. Citystate, a thrift institution, is the newest bank entering the multi-billion FCDU and trust unit business dominated by big players with regular and expanded banking licenses.

Its entry coincided with latest Bangko Sentral ng Pilipinas (BSP) reports showing FCDU depositors withdrawing their dollar time accounts and presumably investing these in higher yielding instruments as the value of the local unit appreciated relative the US dollar.

The BSP said FCDU deposits fell from its Sept. 8 level by $17.407 billion as at Oct. 6 as account holders, mostly business entities, terminated their time deposit accounts.

“After posting week on week growth for three consecutive weeks from Sept. 8 this year, FCDU deposit liabilities dropped by $17 million to just $17.407 billion.

This was lower by 0.4 percent than previous level of $17.478 billion but higher by 13.9 percent or by $2.128 billion than year ago level of only $15.279 billion, “BSP Governor Amando Tetangco Jr. said.

Total FCDU assets were highest at end-June this year when this hit $21.6 billion, higher than previous high point of only $20.5 billion in 1997, according to Tetangco

Source: The Daily Tribune (Ruben Hortelano)

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