Benise Balaoing

The facade of the Bangko Sentral ng Pilipinas on February 15, 2024. Jonathan Cellona, ABS-CBN News

Article (news)

Bangko Sentral ng Pilipinas

Michelle Ong

ABS-CBN News

<p>MANILA -- The Bangko Sentral ng Pilipinas (BSP) is planning to cut the reserve requirement ratio (RRR) for banks, Governor Eli Remolona said Friday.</p><p>Speaking on ANC’s Market Edge, Remolona said the present 5 percent RRR is “still too high.”</p><p>“So we’re looking for a good time to reduce it further,” he said.</p><p>Asked, however, if the RRR cut will come in the next three or four months, the central bank chief said, “Probably not that soon. It&#x27;s not an urgent thing, but we&#x27;ll get there.”</p><p>“We&#x27;re at 5 percent, so we could cut to 2 percent maybe,” he added.</p><p>In February, the BSP cut the RRRs of universal and commercial banks to 5 percent; digital banks to 2.5 percent; and thrift banks to zero percent.</p><div><a href="https://www.abs-cbn.com/news/business/2025/2/21/bsp-slashes-banks-reserve-requirements-1623" rel="noopener noreferrer" target="_blank">BSP slashes banks&#x27; reserve requirements</a></div><p>The RRR refers to the percentage of deposits that a commercial bank must hold in reserve—meaning, these can’t be loaned out or invested.</p><p>Cutting the RRR is expected to boost bank lending, which can help borrowers fund big-ticket purchases like houses or cars, or encourage them to invest in business.</p><p>The central bank yesterday reduced its benchmark rate further by 25 basis points, as inflation slowed to less than 1 percent in July.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/28/bsp-cuts-interest-rates-by-25-basis-points-1442" rel="noopener noreferrer" target="_blank">BSP cuts policy rate by 25 basis points to 5 pct</a></div><p>Remolona called the latest figure the “Goldilocks rate,” which means it balances economic growth and manageable inflation.</p><div><a href="https://www.abs-cbn.com/news/business/2025/8/28/bsp-hits-goldilocks-rate-hints-of-end-of-easing-cycle-2226" rel="noopener noreferrer" target="_blank">BSP hits ‘Goldilocks’ rate, hints of end of easing cycle</a></div>

<p>The Bangko Sentral ng Pilipinas (BSP) is planning to cut the reserve requirement ratio (RRR) for banks, Governor Eli Remolona said.</p>

The Bangko Sentral ng Pilipinas (BSP) is planning to cut the reserve requirement ratio (RRR) for banks, Governor Eli Remolona said.

BSP eyes cutting banks' reserve requirements, but 'not that soon'

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BSP eyes cutting banks' reserve requirements, but 'not that soon'

Michelle Ong,

Benise Balaoing,

ABS-CBN News

Published August 29, 2025 04:23 PM PHT

Read More:

Bangko Sentral

Bangko Sentral ng Pilipinas

BSP

reserve requirement ratio

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