BSP reduces reserve requirements for savings, rural and cooperative banks │ GMA News Online

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Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno on Tuesday announced a 100 basis point reduction in the reserve requirements of savings banks (TB) and rural and cooperative banks (RCB) from the end of July.

As of July 31, 2020, reserve requirements (the amount of cash that banks must keep in reserve) of TBs will be reduced to 3% and RCBs to 2%.

“The reduction is expected to increase the lending capacity of these banks to meet the financing needs of their micro, small and medium enterprises as well as customers in rural communities,” Diokno said in a statement.

“This will also help reduce intermediation costs and ease the financial strains faced by customers of these banks,” he added.

As a reminder, in March the BSP already reduced the reserve requirement ratio of all universal and commercial banks by 200 basis points.

“This move is also part of the BSP’s omnibus reform package aimed at helping the banking public meet their liquidity needs during the 2019 Corona virus disease pandemic and supporting the transition to a sustainable recovery during the period. post-crisis, ”said Diokno.

As a reminder, the central bank pledged in March to pay 20 billion pesos to the national government to support efforts against COVID-19.

He also bought 300 billion pesos in government securities to support government programs against the spread of COVID-19.

The BSP has also cut policy interest rates so far by a total of 175 basis points this year – 25 basis points in February and 50 basis points each in April, May and June. KBK, GMA News

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