Depositors who have valid savings and demand deposit accounts
with balances of P15,000 and below will now be eligible for outright payment without the filing of deposit insurance claims," PDIC said.
Chen Yi-tuan, deputy director of the economic research department of the CBC, pointed out that it remains to be seen whether local people will transfer their funds from demand deposit accounts
to time deposit accounts, due to the issue of the stock transaction gains tax.
Originally enacted in 1933, Regulation Q prohibited financial institutions from paying interest on commercial demand deposit accounts
Most G4S cash stays in demand deposit accounts
A savings account requires a minimum balance of the equivalent of USD5,000, while the minimum in demand deposit accounts
is USD3,000, the report noted.
For example, customers who come into a branch location to open savings or demand deposit accounts
(DDA) have a high propensity to accept an instantly prescreened credit product that is offered to them in real time, says Lindeen.
Profits from demand deposit accounts
used by banks for conducting interbank transactions will be big, he said, unveiling an estimate that a 10 basis-point rise of the three-month TIBOR will be equal to an increase in such profits of ''slightly above 10 billion yen.
Some sweep investment customers removed their sweeps and chose to leave excess dollars in bank demand deposit accounts
to get earnings credit or parked excess dollars in non-sweep, FDIC-insured money market savings accounts.