{"id":135353,"date":"2017-11-30T22:56:39","date_gmt":"2017-12-01T03:56:39","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=135353"},"modified":"2025-01-19T13:54:40","modified_gmt":"2025-01-19T18:54:40","slug":"bank-execs-back-cut-in-banks-reserve-requirements","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2017\/11\/30\/bank-execs-back-cut-in-banks-reserve-requirements\/","title":{"rendered":"Bank execs back cut in banks\u2019 reserve requirements"},"content":{"rendered":"
\"shutterstock\"<\/a>
To date, universal and commercials banks are required to have a 20 percent RRR, which is the share of depositors’ balances that banks need to place with central bank in the form of either cash or other liquid assets (Shutterstock photo)<\/figcaption><\/figure>\n

MANILA — A cut in Philippine banks\u2019 reserve requirement ratio (RRR) will boost financial institutions\u2019 ability to expand their lending operations to further help the vibrant domestic economic activities.<\/p>\n

To date, universal and commercial banks (U\/KBs) are required to have a 20 percent RRR, which is the share of depositors\u2019 balances that banks need to place with central bank in the form of either cash or other liquid assets.<\/p>\n

Banco De Oro (BDO) treasurer Pedro Florescio said a cut in the RRR is important since it will allow banks to extend more loans.<\/p>\n

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<\/p>\n

\u201cLowering the RRR will allow banks to boost its lending capacity providing a continuous supply of credit for consumers and businesses,\u201d he said.<\/p>\n

Economists have been projecting a cut in the RRR since the central bank\u2019s policy-making Monetary Board (MB) has been maintaining its key rates for a long time despite the rise in inflation rate.<\/p>\n

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<\/p>\n

The last time the BSP adjusted the RRR was in May 2014 when it was hiked by a percentage point to 20 percent for universal and commercial banks (U\/KBs).<\/p>\n

That year, the BSP hiked RRR by a total of 50 basis points, 25 basis points in March and May, as growth of domestic liquidity grew stronger than in the past years at a level of more than 20 percent.<\/p>\n

Economists have been penciling in an RRR cut because it is among the highest in the region.<\/p>\n

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<\/p>\n

Recently, BSP Governor Nestor Espenilla Jr. said a cut in the RRR to single digit is an option to release more liquidity in the system since this is needed by the economy.<\/p>\n

Projections said a cut in RRR will release about PHP700 billion in the economy in the medium term.<\/p>\n

BPI Treasurer Antonio Paner said releasing additional liquidity this time will have limited impact on inflation \u201cbecause the reduced cost of funds will help reduce cost push inflation.\u201d<\/p>\n

\u201cWe are confident that the BSP is equipped to manage the impact on price changes as there are other monetary tools that can be used,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA — A cut in Philippine banks\u2019 reserve requirement ratio (RRR) will boost financial institutions\u2019 ability to expand their lending …<\/p>\n","protected":false},"author":33,"featured_media":45359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[36450,36448,36451,32784,18851,36449],"class_list":["post-135353","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-antonio-paner","tag-banco-de-oro","tag-lending-operations","tag-monetary-board","tag-nestor-espenilla-jr","tag-pedro-florescio","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/135353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=135353"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/135353\/revisions"}],"predecessor-version":[{"id":285850,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/135353\/revisions\/285850"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/45359"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=135353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=135353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=135353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}