The banking system’s trust and investment management business grew by 6.24 percent as of end-March to P3.95 trillion versus P3.71 trillion same period in 2022, based on Bangko Sentral ng Pilipinas (BSP) data. The big banks or the universal and commercial banks accounted for P3.92 trillion of these trust holdings while thrift banks managed P27 billion. The trust industry’s assets are composed of investments in securities and bank deposits. As of end-March, cash and due from banks went up by 35.54 percent to P450 million from P332 million while deposit in banks rose by 27.86 percent to P1 trillion from P786 billion same time last year. Net financial assets and net loans, in the meantime, dropped 4.44 percent and 3.83 percent, respectively, to P2.36 trillion from P2.47 trillion and P77.62 billion from P80.71 billion. Under total accountabilities, trusts holdings also decreased 16.53 percent to P1.43 trillion from P1.71 trillion. During the period, unit investment trust funds declined by 40.61 percent to P519.13 billion from P874.13 billion. As for employee benefit and pre-need, these rose by 8.79 percent and 2.27 percent, respectively, to P350.79 billion and P90 billion from P322.44 billion and P88.21 billion. Meanwhile, agency trusts under total accountabilities rose by 24 percent to P1.92 trillion from P1.55 trillion while other fiduciary services increased 31.41 percent to P591.69 billion from P450.26 billion. The industry’s asset structure is largely influenced by the 46 big banks which is almost 60 percent of gross loans, about 25 percent of total financial assets and the rest are cash and due from banks. Based on BSP rules and definition, a bank or non-bank such as investment houses can be specifically designated to have a business unit to perform trust functions. A trust is an arrangement whereby a person called a trustee is appointed by a person called a trustor to administer, hold and manage funds and/or property of the trust or for the benefit of a beneficiary.