{"id":219456,"date":"2019-06-19T00:20:23","date_gmt":"2019-06-19T04:20:23","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=219456"},"modified":"2019-06-19T00:20:23","modified_gmt":"2019-06-19T04:20:23","slug":"dont-link-rrr-cuts-to-tdf-bids-bsp-chief","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2019\/06\/19\/dont-link-rrr-cuts-to-tdf-bids-bsp-chief\/","title":{"rendered":"Don’t link RRR cuts to TDF bids: BSP chief"},"content":{"rendered":"
\"\"<\/a>
This was stressed by BSP Governor Benjamin Diokno Tuesday when asked for his reaction to the undersubscription of the central bank\u2019s Term Deposit Facility (TDF). (File Photo<\/a>: Bangko Sentral ng Pilipinas\/Facebook<\/a>)<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0— Increase in domestic liquidity as a result of the cut in banks\u2019 reserve requirement ratio (RRR) should not be the gauge for tenders in the Bangko Sentral ng Pilipinas\u2019 (BSP) term facility.<\/p>\n

This was stressed by BSP Governor Benjamin Diokno Tuesday when asked for his reaction to the undersubscription of the central bank\u2019s Term Deposit Facility (TDF).<\/p>\n

\u201cThat is not the measure of liquidity. It means they are putting money elsewhere. Maybe they are investing it in stocks or they are really lending it,\u201d he said.<\/p>\n

The BSP\u2019s policy-making Monetary Board (MB) has decided for staggered cuts in banks\u2019 RRR this year.<\/p>\n

Specifically, these will be at 100 basis points effective May 31, and 50 basis points effective June 28 and July 26 for universal and commercial banks (U\/KBs), thrift banks (TBs), and non-bank financial institutions with quasi-banking functions (NBQBs).<\/p>\n

Rural banks (RBs) and cooperative banks\u2019 (Coop banks) demand deposits and negotiable order of withdrawal (NOW) accounts was slashed by 100 basis points effective May 31, 2019.<\/p>\n

These cuts are expected to release at least PHP180 billion worth of liquidity into the economy.<\/p>\n

Diokno said these cuts were announced three months ahead of the full implementation, thus, banks have ample leeway to plan where to place the additional funds.<\/p>\n

During the TDF auction last June 13, both the 13-day and 27-day facility were undersubscribed.<\/p>\n

The BSP offered the 13-day TDF for PHP10 billion but it only received PHP7.418 billion worth of bids.<\/p>\n

Bids for the 27-day facility reached PHP6.774 billion, lower than the PHP10-billion offer.<\/p>\n

Only the six-day facility received bids that are higher than the PHP10-billion offer after tenders reached PHP10.77 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0— Increase in domestic liquidity as a result of the cut in banks\u2019 reserve requirement ratio (RRR) should not be …<\/p>\n","protected":false},"author":44,"featured_media":151970,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-219456","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","mauthors-joann-villanueva","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/219456","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\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=219456"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/219456\/revisions"}],"predecessor-version":[{"id":219457,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/219456\/revisions\/219457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/151970"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=219456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=219456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=219456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}