BSP to cut reserve requirement for banks by 250 basis points

ABS-CBN News

<p>MANILA — The Bangko Sentral ng Pilipinas on Thursday said it will cut the reserve requirement ratio (RRR) by 250 basis points for universal and commercial banks and non-bank financial institutions with quasi-banking functions effective June 30.</p><p>The RRR for digital banks was cut by 200 bps, and thrift&#x27;s banks, rural banks and cooperative banks by 100 bps, the central bank said.</p><p>The adjustments will bring the RRRs of universal and commercial banks and non-bank financial institutions to 9.5 percent, digital banks to 6 percent, thrift banks to 2 percent and rural and cooperative banks to 1 percent, the BSP said.</p><p>&quot;The reduction in reserve ratios is intended to coincide with the expiration of alternative modes of compliance with reserve requirements by end-June 2023 and thereby ensure stable domestic liquidity and credit conditions,&quot; the central bank said.</p><p>&quot;This operational adjustment is in line with the BSP’s ongoing efforts towards a more active and flexible approach to liquidity management through market-based monetary operations,&quot; it added.</p><p>However, the BSP clarified that the lower reserve requirements &quot;do not constitute any shift in the monetary policy setting.&quot;</p><p>&quot;The BSP continues to prioritize bringing inflation back towards a target-consistent path over the medium term and will continue to signal its monetary policy stance through the key policy interest rate, or the rate on the overnight reverse repurchase facility,&quot; it said.</p><p>During last month&#x27;s monetary policy meeting, the BSP kept the benchmark interest rate a 6.25 percent.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/18/23/bangko-sentral-keeps-benchmark-interest-rate-at-625-percent">BSP keeps benchmark interest rate at 6.25 percent as inflation slows</a></li>	<li><a href="https://news.abs-cbn.com/video/business/05/17/23/bsp-mulls-cutting-required-bank-reserves">BSP mulls cutting required bank reserves</a></li></ul><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2618760" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The BSP said it will cut the reserve requirement ratio (RRR) by 250 basis points for universal and commercial banks effective June 30.

BSP to cut reserve requirement for banks by 250 basis points | ABS-CBN

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BSP to cut reserve requirement for banks by 250 basis points

BSP to cut reserve requirement for banks by 250 basis points

ABS-CBN News

Published Jun 08, 2023 04:30 PM PHT

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RRR cut

reserve requirement ratio

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