Business and Economy
UnionBank welcomes BSP cut on reserve requirement
Early this month, the MB hiked policy interest rates by 25 basis points (Shutterstock photo)
MANILA — Union Bank of the Philippines President and Chief Executive Officer Edwin Bautista has welcomed Bangko Sentral ng Pilipinas’ (BSP) move to cut banks’ reserve requirement ratio by 1 percentage point, as this will allow more liquidity in the market
On the sidelines of UnionBank’s annual stockholders’ meeting Friday, Bautista said this decision by the policy-making Monetary Board (MB) will allow banks to lend more without having to raise more funds. “Currently, market’s liquidity is tighter because of the increase in interest rates,” he said.
Early this month, the MB hiked policy interest rates by 25 basis points. But the central bank also announced Thursday the reduction of reserve requirement which will take effect next month.
“That would help. It puts more liquidity in the market and we can continue to lend,” said Bautista.
Meanwhile, Bautista said UnionBank is on track in achieving its FOCUS 2020 goal — the bank’s initiatives on fiscal value, operational excellence, customer franchise, UnionBank experience, and superior innovation.
He added that the bank will continue to incorporate new technologies such as blockchain in its business to cut operational cost.
UnionBank is also well on its way to becoming a digital bank, which means the company needs to retool its employees’ skill set particularly those involved in operations or other front-line functions such as the tellers, among others. Bautista noted that while UnionBank is turning digital, the bank is also creating value added jobs.
