Bangko Sentral trims small banks’ reserve requirement ratioBy The Manila TimesTHE central bank has trimmed small banks’ reserve requirement ratio (RRR) on Thursday, with monetary authorities ordering a total of 300-basis-points (bps) reduction on the liquidity-mopping tool. “This morning, the Monetary Board decided to cut the RRR for thrift, savings, [rural], and cooperative banks,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno announced in a message to reporters. Thrift and savings banks’ reserve requirement will be reduced by a total of 200 bps to 6 percent from the current 8 percent. Meanwhile, the RRR of rural and cooperative banks will be trimmed by 100 bps to 4 percent from the current 5 percent. The latest action came a week after the Monetary Board decided to cut universal and commercials banks’ 18 percent reserve requirement to 16 percent.

Source: Manila Times May 23, 2019 10:08 UTC